For the 13 US Big Telecommunication 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 a very modest 7.6%. And for the most recent year 2010, this effective tax rate was an even lower 6.1%.
Here are the 6 of these 13 Big US Telecom Corps that had an effective US Federal Income Tax Rate Paid below 10% in 2010:
...............................Current US.............................Effective
...............................Fed Inc Tax....Consolidated...Tax Rate
..............................Paid(Benefit)...........PTI.......Paid(Benefit)
...................................2010................2010............2010
......................................(million of $s).....
US Big Telecom
Verizon Commun........(705)..............12,684..........(5.6)%
Qwest Commun..............(14)..................925...........(1.5)%
NII Holdings.....................0...................598............0.0%
AT&T............................307..............18,238............1.7%
Time Warner Cable........127................2,196............5.8%
CBS.................................89................1,222............7.3%
Total all 6 Telecom......(196).............35,863...........(0.5)%
My proposal here is that all US Big Telecom 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 Telecom Corps, and use a 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 $72.9 bil. And 92% of this positive CBO scoring just relates to the two US Big Telecom Giants.....AT&T and Verizon.
And if I use a 15% minimum Federal Income Tax Rate, rather than a 10% minimum tax rate, I get positive CBO scoring of $110.2 bil over the 10 years from 2012 to 2021.
Perhaps the best way to go on a minimum tax on US Big Telecom 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.
