I found 4 Big Tobacco Corps with Pretax Income of at least $100 mil in the most recent quarter.
These 4 Big Tobacco Corps generated Total Pretax Income growth of a very robust 21% in the 2Q 2011, driven mainly by exceptional earnings growth overseas by Phillip Morris International (PM).
Below here are these 2Q 2011 Pretax Earnings (PTI), along with a comparison with the prior year’s quarter amounts.
...........................................................................Increase
................................................PTI........PTI.......(Decrease)
.................................................2Q.........2Q..................
...............................................2011......2010....Amount....%
.................................................(millions of dollars)
Phillip Morris Intl.........NY....3,504.....2,683.......821.....31%
Altria Group(1).............VA....1,646......1,521.......125.......8%
Reynolds American(2)..NC.......628........551........77......14%
Lorillard.......................NC........460.......418........42......10%
Total all 4...............................6,238....5,173....1,065.....21%
(1) Altria Group 2011 PTI excludes Leverage Lease Charge. Its 2010 PTI excludes Charge related to Kraft and Phillip Morris Intl Tax Receivables.
(2) Reynolds American 2011 PTI excludes Lawsuit Charge.
Phillip Morris International generated $10.3 bil of Pretax Income in 2010. So, what was its current US federal income tax paid or payable in 2010? Would you believe a mere $157 mil.....it's true.
With its massive 31% earnings growth in the 2Q 2011, PM could well generate more than $13 bil in Pretax Income in annual 2011.
Especially given the horrible level of US Debt level, there is no way a company headquartered in New York City, and getting so many government benefits, should be paying such a meager amount of US federal income tax, and even State Income Tax, for that matter.
I think it's pretty clear that this massive Corp Tax Loophole, which permits Phillip Morris to pay such meager amounts of US federal income tax, should be closed, and used to reduce the US Debt.
