For the 43 Big High Tech Corps with Total Pretax Income above $1.5 bil each for the most recent three years, the total effective US Federal Income Tax Rate Paid was 13.9%. This was pretty consistent with their most recent year's like effective tax rate of 13.2%.
When stratifying these Big High Tech Corps, here are the ones with effective US Federal Income Tax Rates Paid below 10% in either the most recent year, or in total for the most recent three years.
..................................Consolidated........Effective US Federal
................................Pretax Income.....Income Tax Rate Paid ......................................2010.................2010...2008-2010
...................................(mils of $s)
IBM..............................19,723.................1.0%........1.8%
Hewlett Packard...........10,974.................4.4%........3.0%
Corning..........................3,845.................0.0%........0.0%
Ebay...............................2,098................-6.2%.......11.0%
CA Technologies.............1,209.................9.1%.......18.2%
Yahoo............................1,070.................2.4%.......20.1%
Computer Sciences............968.................2.0%........1.2%
Altera................................868.................3.5%........4.9%
Xerox................................815................18.8%........5.1%
Western Digital..................780.................2.7%........4.1%
Juniper Networks..............778................-1.0%.......11.7%
First Solar..........................762................12.2%........7.4%
Priceline............................746.................0.7%........0.7%
Symantec...........................729.................2.3%........9.7%
Seagate Technology............579................-1.0%.......-1.1%
Garmin Ltd.........................577................-8.0%........6.5%
Total of all 16..................46,521.................2.1%........3.8%
My proposal here is that all US Big High Tech Corps should pay in US Federal Income Tax each year at least an amount equal to 10% of their Worldwide Pretax Income. That's not too much to ask, particularly in these horrible economic times, not just for US citizens and small businesses, but also for the US Debt Status.
When I run the detailed numbers on these Big High Tech Corps, and use a conservative 10% average annual profit growth and 10% annual Federal Income Tax Paid growth from 2010 to 2021, I get additional US Federal Income Tax Receipts over the 10 years from 2012 to 2021 of $73.0 bil.
And if I use a 15% minimum Federal Income Tax Rate, rather than a 10% minimum tax rate, I get positive CBO scoring of $158.7 bil over the 10 years from 2012 to 2021.
Perhaps the best way to go on a minimum tax on US Big High Tech Corps would be to apply a 10% minimum US Federal Income Tax on the first $10 bil of annual Worldwide Pretax Income, then a 15% minimum tax on any annual Worldwide Pretax Income in excess of $10 bil and up to $20 bil, and then a 20% minimum tax on any annual Worldwide Pretax Income in excess of $20 bil.
All of the tax receipts here should be used to reduce the US Debt.
