In my most recent five posts, I summarized key financial information related to the 248 largest US Corps, with Worldwide Pretax Income exceeding $1 bil each in the most recent year through July 2011. The bulk of these had December 2010 year ends.
In this post, I will summarize similar key financial information related to the 192 US Corps, with Worldwide Pretax Income(PTI) between $0.5 bil and $1.0 bil each in the most recent year through July 2011. Included in these 192 Corps are 14 Utility Corps and 9 Partnerships or REITs.
These 192 larger US Corps generated Total Worldwide Pretax Income of $136.5 bil in the most recent year, and a good estimate of their total US Federal Income Tax Paid was $16.1 bil, thus the estimated total effective US Federal Income Tax Paid Rate was only 11.8%. Excluding these Utilities, Partnerships, and REITs, the estimated total effective US Federal Income Tax Paid Rate was 13.6%.
This US Federal Income Tax paid is the amount disclosed in their income tax footnotes as the Current Federal Income Tax Expense Paid or Payable related to the current year, and thus should be pretty close to the actual US Federal Income Tax paid in the most recent year.
Here is the detailed information for these 192 larger US Corps:
..........................................................................US........Effective
.......................................................................Current........US
.......................................................................Federal.... Federal
......................................................................Income......Income
.......................................................World.........Tax...........Tax
........................................................Wide.........Paid..........Rate
.........................................................PTI........(Benefit)......Paid
........................................................(mils of dollars)
Multinational Corps
Northern Trust................................990...........220........22.2%
Computer Sciences..........................968............19...........2.0%
Avon Products................................945...........(21)........(2.2)%
Adobe Systems...............................943...........260.........27.6%
Discovery Communications............935...........184.........19.7%
Dover.............................................925............34...........3.7%
Noble Corp.....................................917............81...........8.8%
Marvell Technology.......................910..............1...........0.1%
Analog Devices..............................902...........117.........13.0%
Cognizant Technologies(1).............879...........110.........12.5%
Avnet............................................871............64...........7.3%
Altera............................................868............30...........3.5%
Reinsurance Corp..........................864..........(218).....(25.2)%
Zimmer Holdings...........................860...........235.........27.3%
Las Vegas Sands.............................856...........(31)........(3.6)%
Arch Capital Group Ltd..................850............10...........1.2%
Mattel............................................847............14...........1.7%
Invesco Ltd...................................834............45...........5.4%
Brown Forman...............................829...........142.........17.1%
Newfield Exploration.....................829.............(1)........(0.1)%
Polo Ralph Lauren..........................825...........126.........15.3%
Intl Paper.......................................822..........(249).....(30.3)%
Activision Blizzard(2).....................818...........314.........38.4%
ITT.................................................818...........152.........18.6%
Xerox.............................................815...........153.........18.8%
Molson Coors Brewing....................809..............8...........1.0%
Goodrich........................................805............67...........8.3%
Lam Research.................................801............55...........6.9%
NetApp..........................................794...........113.........14.2%
Western Digital..............................780............21...........2.7%
Juniper Networks..........................778.............(8)........(1.0)%
Xilinx............................................771............14...........1.8%
Marsh & McLennan........................769...........(90)......(11.7)%
CIT Group(3).................................768.............(9)........(1.2)%
First Solar......................................762............93.........12.2%
VF Corp.........................................750...........188.........25.1%
Ecolab(1).......................................748...........174.........23.3%
Coca Cola Enterprises....................746..............8...........1.1%
Priceline........................................746..............5...........0.7%
Cameron Intl.................................733...........103.........14.1%
Symantec......................................729............17...........2.3%
CR Bard.........................................718...........168.........23.4%
Moodys.........................................714...........107.........15.0%
Agilent Technologies.....................692...........(40)........(5.8)%
NYSE Euronext.............................686............18...........2.6%
XL Captal Group(1).......................685............40...........5.8%
Joy Global....................................679............33...........4.9%
Arrow Electronics........................679............88.........13.0%
Sherwin Williams.........................678...........127.........18.7%
Motorola Solutions......................677..............7...........1.0%
Amphenol(1)...............................664............78.........11.7%
Paccar.........................................660............25...........3.8%
Ensco Intl(1)................................645............10...........1.6%
Assured Guaranty Ltd(4).............636...........(25)........(3.9)%
Eastman Chemical.......................636...........115.........18.1%
Mead Johnson Nutrition.............634............38...........6.0%
Expedia......................................621...........107.........17.2%
GameStop...................................621...........133.........21.4%
Flextronics(4)............................616............23...........3.7%
Crown Holdings(5).....................614..............0...........0.0%
Intercontinental Exchange(1).....610...........145.........23.8%
Ball Corp....................................606............49...........8.1%
NII Holdings..............................598..............0...........0.0%
Everest re Group Ltd..................591...........(66)......(11.2)%
Fortune Brands..........................588...........(61)......(10.4)%
Whirlpool...................................586..........(101).....(17.2)%
Seagate Technology...................579.............(6)........(1.0)%
Garmin Ltd................................577...........(47).......(8.1)%
Expeditors Intl Washington........564............77.........13.7%
Check Point Software.................564..............7...........1.2%
Wyndham WW...........................563............55...........9.8%
Fluor.........................................560............22...........3.9%
Constellation Brands..................551..........(113).....(20.5)%
Alcoa.........................................548............33...........6.0%
Royal Caribbean........................547..............0...........0.0%
Tiffany.......................................547...........150.........27.4%
Rockwell Automation................544............10...........1.8%
Sigma Aldrich............................544...........111.........20.4%
Energizer Holdings.....................543............67.........12.3%
Allergan(2)................................540...........288.........53.3%
FMC Technologies.....................538............21...........3.9%
Celanese(1)................................538............62.........11.5%
Pitney Bowes..............................535...........170........31.8%
Varian Medical Systems.............533............69.........12.9%
BMC Software.............................531...........(14)........(2.6)%
Cooper Industries......................530............29...........5.5%
Flowserve..................................530............13...........2.5%
Nasdaq OMX Group....................526...........116.........22.1%
Hasbro.......................................508............35...........6.9%
Henry Schein.............................502...........109.........21.7%
Total 90 Multinational Corps.63,385........4,832..........7.6%
Predominantly Domestic Corps
Erie Indemnity..........................999.............(6)........(0.6)%
Southwestern Energy.................995............10...........1.0%
Nordstrom.................................991...........324.........32.7%
Dollar General............................985...........273.........27.7%
BB&T..........................................969...........161.........16.6%
Intuit.........................................966...........268.........27.7%
Fifth Third Bancorp....................940............(5)........(0.5)%
EOG Resources(6)......................933............17...........1.8%
Qwest Communications(7).........925...........(14)........(1.5)%
Lab Corp America......................916...........270.........29.5%
Cimarex Energy.........................914............43...........4.7%
Assurant(2)...............................912...........331.........36.3%
TD Ameritrade..........................912...........169.........18.5%
Ross Stores...............................897...........330.........36.8%
Hudson City Bancorp................892...........335.........37.6%
SAIC.........................................883...........259.........29.3%
Harris Corp...............................881...........229.........26.0%
Safeway.....................................881...........180.........20.4%
Republic Services......................877..........254.........29.0%
WW Grainger.............................854...........283.........33.1%
Gannett.....................................846...........135.........16.0%
Principal Financial....................841............74...........8.8%
NY Community Bank.................837...........221.........26.4%
Dr Pepper Snapple.....................821...........192.........23.4%
Hershey....................................809...........283.........35.0%
Rockwell Collins........................802...........146.........18.2%
Fiserv.......................................793...........224.........28.2%
Key Corp...................................793...........127.........16.0%
Paychex....................................792...........234.........29.5%
Pioneer Natural Resources........788..............0...........0.0%
Charles Schwab.........................779...........326.........41.8%
Torchmark Insurance(4)...........779...........447.........57.4%
Genuine Parts............................762...........222.........29.1%
Smithfield Foods........................757............58...........7.7%
OneOK.......................................755............59...........7.8%
Southwest Airlines.....................745...........198.........26.6%
Davita........................................744...........154.........20.7%
Scripps Networks.......................740...........194.........26.2%
Williams Cos(8)..........................735............81.........11.0%
Linear Technology.....................724...........112.........15.5%
Ultra Petroleum(4).....................723............22...........3.0%
JM Smucker...............................717...........271.........37.8%
American Financial Group.........689...........214.........31.1%
OReilly Automotive...................689...........146.........21.2%
CF Industries.............................688...........142.........20.6%
Coventry Health........................687...........350.........50.9%
H&R Block.................................677...........188.........27.8%
EXCO Resources........................674..............1...........0.1%
Darden Restaurants...................648...........122.........18.8%
Dollar Tree................................630...........216.........34.3%
Hormel Foods............................625...........170.........27.2%
CH Robinson..............................624...........196.........31.4%
Cephalon...................................619...........218.........35.2%
Fidelity National Info Svcs........616...........210.........34.1%
ITT Educational........................614...........217.........35.3%
Carmax.....................................613...........185.........30.2%
Delta Air Lines..........................608.............(7)........(1.2)%
WR Berkley...............................603............79.........13.1%
Cablevision Systems..................591.............(3)........(0.5)%
KBR...........................................586............56...........9.6%
Sunoco......................................586..........(105)......(17.9)%
CHS(1).......................................584..............8...........1.4%
JCPenney(9)..............................581............92.........15.8%
ING Life Insurance&Annuity.....578............73.........12.6%
Walter Energy...........................578............77.........13.3%
Intuitive Surgical......................572...........190.........33.2%
Family Dollar Stores..................564...........174.........30.9%
Clorox.......................................563...........139.........24.7%
Fidelity National Fincl(1)...........562............74.........13.2%
Advance Auto Parts...................557...........152.........27.3%
American Tower........................556..............0...........0.0%
Marriott.....................................551...........117.........21.2%
Whiting Petroleum.....................541..............1...........0.2%
Washington Post........................523...........136.........26.0%
URS...........................................514...........120.........23.3%
Community Health Systems.......508............52..........10.2%
Windstream...............................505............71.........14.1%
US Airways................................502..............0...........0.0%
Cincinnati Financial...................501............94.........18.8%
Total 79 Domestic Corps.......57,511......11,656.........20.3%
Partnerships & REITs
Simon Property Group..............754.............0..........0.0%
Icahn Enterprises LP(1)............753...........(17).......(2.3)%
Vornado Realty Trust(1)...........751............25..........3.3%
Public Storage..........................689..............0..........0.0%
Apollo Global Management......635..............8..........1.3%
Energy Transfer Partners.........633..............1..........0.2%
El Paso Pipeline Partners.........608..............1..........0.2%
Chimera Investment................534..............0..........0.0%
Plains All American Pipeline....513..............0..........0.0%
Total 9 Partnerships&REITs..5,870............18..........0.3%
Utilities
Ameren(2)..............................964............13...........1.3%
DTE Energy.............................950..........(172)......(18.1)%
Sempra Energy.......................786............27...........3.4%
PacifiCorp...............................777..........(498)......(64.1)%
NRG Energy............................753...........211.........28.0%
CenterPoint Energy................705............40...........5.7%
Wisconsin Energy(1)...............704...........145.........20.6%
Constellation Energy(10)........702...........(47)........(6.7)%
Allegheny Energy....................628.............7...........1.1%
Northeast Utilities..................605..............9...........1.5%
CMS Energy.............................590...........(21)........(3.6)%
SCANA....................................534...........(47)........(8.8)%
UGI Corp.................................523............61.........11.7%
Pinnacle West Capital..............515..........(109)......(21.2)%
Total 14 Utility Corps...........9,736..........(381).......(3.9)%
Grand Total 192 Corps......136,502........16,125........11.8%
(1) US Federal Income Tax Paid also includes US State Income Tax Paid.
(2) PTI excludes large Intangible Asset Impairment Charge.
(3) Foreign Income Tax Paid includes both Current and Deferred Income Taxes.
(4) US Federal Income Tax Paid includes all Worldwide Income Tax Paid.
(5) Foreign Income Tax Paid also includes US State Income Tax Paid.
(6) PTI excludes large Oil and Gas Property Asset Impairment Charge.
(7) PTI excludes large Loss on Embedded Option in Convertible Debt Charge.
(8) PTI excludes both large Intangible Asset Impairment Charge and large Oil and Gas Property Asset Impairment Charge.
(9) US Federal Income Tax Paid also includes Foreign Income Tax Paid.
(10) PTI excludes huge Asset Impairment Charge.
Focusing now on which of these larger US Multinational Corps are taking the most advantage of tax loopholes, which permits them to pay so little in US Federal Income Taxes, below are 32 of them, whose US Federal Income Tax Paid Mix (i.e. US as a % of Worldwide) is at least 10% lower than their US Pretax Income Mix:
...........................................US..................................US
.........................................Current............................Tax
...........................................Fed...............................Paid
...........................................Inc............US.................vs
...........................................Tax............PTI............Income
...........................................Mix...........Mix............Spread
Fortune Brands.................(610)%........18%.............(628)%
Garmin Ltd.......................(294)%........28%.............(322)%
Constellation Brands........(112)%........172%.............(284)%
Reinsurance Corp..............(141)%........63%.............(204)%
Intl Paper.........................(137)%.........24%.............(161)%
Las Vegas Sands...............(119)%........(12)%............(107)%
BMC Software.....................(52)%.........55%.............(107)%
Pioneer Natural Resources.....0%.........99%..............(99)%
American Tower....................0%.........96%..............(96)%
Newfield Exploration..........(2)%.........79%..............(81)%
Molson Coors Brewing.........17%.........96%..............(79)%
EOG Resources.....................10%.........81%..............(71)%
Juniper Networks..............(22)%.........48%..............(70)%
Fluor...................................19%..........81%..............(62)%
Agilent Technologies........(38)%.........24%..............(62)%
Whirlpool..........................(98)%........(44)%............(54)%
Seagate Technology..........(27)%.........17%..............(45)%
Computer Sciences.............16%..........60%..............(44)%
Motorola Solutions...............4%..........39%..............(35)%
Joy Global..........................26%..........57%..............(31)%
Dover.................................24%..........51%..............(26)%
Flowserve...........................12%..........38%..............(26)%
Wyndham WW....................56%..........79%..............(23)%
Western Digital...................64%..........85%..............(21)%
Fidelity Natl Info Svcs........89%........109%.............(20)%
Marsh & McLennan..........(57)%........(38)%............(18)%
Symantec..........................20%..........37%..............(17)%
Priceline.............................3%...........18%..............(15)%
Ball Corp...........................38%...........53%..............(14)%
Paccar..............................17%............28%..............(11)%
Williams Cos.....................67%...........76%..............(10)%
Sempra Energy.................47%...........57%..............(10)%
US Multinational Corps receive a lift in their worldwide after-tax earnings when they shift their income from the higher income taxed US to lower income taxed foreign jurisdictions. A clear problem with this income shift by US Multinational Corps is that the severely-depressed US Government financial coffers suffer, as do US State Government coffers.
Below here are the 104 of the above US Corps, with at least some international presence, which disclosed financial information needed for me to compute both the US Pretax Income Mix (as a % of Worldwide Pretax Income) and the Average of US Revenue Mix and US Asset Mix (both as a % of the Worldwide Amounts).
.................................................................................Patriotic
..................................................................................Spread
................................................................................US PTI vs
...........................................US........US.........US....US Average of
..........................................PTI.......Rev......Asset.....US Revs &
..........................................Mix.......Mix.......Mix......US Assets
CIT Group.........................(52)%.....65%.......58%........(114)%
Alcoa................................(74)%.....50%.......23%........(110)%
Marsh & McLennan...........(38)%.....45%.......62%.........(92)%
Whirlpool.........................(44)%.....45%.......36%.........(84)%
Cooper Industries.................9%.....65%.......61%.........(54)%
Avon Products.................(24)%.....16%.......42%.........(53)%
Priceline.............................18%.....53%........88%........(52)%
Intl Paper...........................24%.....77%.......70%........(49)%
Fortune Brands..................18%.....67%........66%........(49)%
NYSE Euronext..................24%.....69%........67%........(44)%
Mattel................................15%.....54%........60%........(43)%
Rockwell Automation........27%.....51%........79%........(37)%
NII Holdings...................(37)%.......0%.........0%........(37)%
Las Vegas Sands..............(12)%......22%........25%........(36)%
Hasbro..............................33%......54%........84%........(36)%
Adobe Systems..................30%.....44%........87%........(35)%
NetApp..............................39%.....51%........92%........(32)%
Sempra Energy..................57%.....90%........87%........(32)%
Garmin Ltd........................28%.....61%........54%........(29)%
Marvell Technology.............3%.......4%........56%........(28)%
Motorola Solutions............39%.....58%........76%........(28)%
Symantec...........................37%.....49%........80%........(27)%
Altera.................................13%.....17%........65%........(27)%
Mead Johnson Nutrition.....17%.....32%........53%........(25)%
Xilinx..................................21%.....26%........65%........(25)%
Safeway...............................62%.....85%........87%........(23)%
Lam Research.....................20%.....12%........71%........(22)%
Williams Cos.......................76%.....97%........97%........(21)%
ITT.....................................43%.....66%........61%........(21)%
First Solar............................6%.....13%........36%........(19)%
Arrow Electronics..............46%.....44%........85%........(18)%
Ensco Intl...........................14%.....25%........39%........(18)%
Paccar................................28%.....41%........51%........(17)%
KBR....................................18%.....21%........50%........(17)%
Agilent Technologies..........24%.....32%........48%........(17)%
VF Corp.............................56%.....70%........74%........(16)%
Crown Holdings...................7%.....28%........18%........(16)%
Juniper Networks..............48%.....46%........80%........(16)%
IntercontinentalExchange.56%.....53%........89%........(15)%
Avnet................................31%.....38%........55%........(15)%
Cognizant Technologies.....25%.....78%.........2%........(15)%
Energizer Holdings............42%.....52%........61%........(15)%
Expedia.............................61%.....62%........90%........(15)%
CR Bard.............................64%.....69%........87%........(15)%
FMC Technologies.............12%.....23%........30%........(14)%
Noble Corp.......................14%.....20%........36%........(14)%
Intuitive Surgical.............77%.....80%........98%........(12)%
Xerox...............................53%.....64%........63%........(10)%
Zimmer Holdings..............44%.....54%........ND.........(10)%
Dover...............................51%.....54%........65%.........(9)%
Cameron Intl....................50%.....53%........64%.........(9)%
Varian Medical Systems....53%.....41%........80%.........(8)%
Pitney Bowes....................73%.....83%........75%.........(6)%
Flowserve.........................38%.....33%........54%.........(5)%
Ball Corp...........................53%.....69%........47%.........(5)%
Northern Trust.................67%.....73%........71%.........(5)%
Newfield Exploration........79%.....76%........91%.........(4)%
Seagate Technology..........17%.....28%........15%.........(4)%
EOG Resources..................81%.....84%........84%.........(3)%
Discovery Commun..........61%.....66%........61%.........(3)%
Clorox..............................79%.....79%........85%.........(3)%
Expeditors Intl Wash........35%.....24%........50%.........(2)%
BMC Software...................55%.....51%........61%.........(2)%
H&R Block........................95%.....95%........ND............0%
Dr Pepper Snapple............91%.....89%........93%...........0%
Gannett............................90%.....90%........ND............0%
Sherwin Williams..............79%.....78%........81%...........0%
Amphenol.........................34%.....35%........32%...........0%
Joy Global.........................57%.....61%........52%...........0%
Computer Sciences............60%.....63%........56%...........1%
URS...................................84%.....91%........74%...........1%
Tiffany...............................64%.....48%........76%...........2%
Reinsurance Corp..............63%.....60%........60%...........3%
Moodys.............................55%.....54%........50%...........3%
Analog Devices..................32%.....18%........40%...........3%
Pioneer Natural Resour......99%.....95%........95%...........4%
Nasdaq OMX Group...........75%.....80%........60%...........4%
Polo Ralph Lauren.............70%.....67%........61%...........6%
Wyndham WW...................79%.....74%........70%...........6%
Henry Schein.....................69%.....63%........60%...........7%
Washington Post................96%.....89%.........ND............7%
Harris Corp........................99%.....93%........88%...........9%
UGI Corp............................86%.....81%........73%...........9%
JM Smucker......................102%.....90%........95%...........9%
Smithfield Foods.................89%.....89%........68%..........10%
WW Grainger.......................94%.....82%........85%..........10%
Rockwell Collins..................91%.....71%........89%..........11%
Eastman Chemical..............80%.....48%........87%..........12%
Ecolab................................67%.....52%........55%..........13%
Sigma Aldrich.....................63%.....37%........63%..........14%
CF Industries......................98%.....85%........84%..........14%
American Tower.................96%.....81%........81%..........15%
Celanese.............................40%.....26%........22%..........16%
Goodrich............................74%.....50%........63%..........17%
Hershey............................104%.....85%........85%..........19%
Fidelity Natl Info Svcs.......109%.....83%........78%..........29%
GameStop...........................89%.....71%........46%..........31%
Lab Corp America...............96%.....ND.........64%..........32%
Cephalon..........................101%.....76%........60%..........33%
Fluor..................................81%.....37%........56%..........35%
Brown Forman...................84%.....48%........ND............36%
Western Digital...................85%.....17%........49%..........52%
Molson Coors Brewing........96%.......1%........20%..........85%
Constellation Brands.........172%.....63%........73%........104%
ND means no disclosure.
============================================
The protesters all throughout the country are spot on. The top 1%, as well as the huge US Multinational Corps, are ruling the country to the demise of everyone else....the other 99% and the small businesses.
The US House and US Senate Republican Leadership continue to parrot the talking points of the US Big Multinational Corps....."Government Regulation is killing jobs".
What an absolute joke! The protesters aren't buying it, and for the Republicans to continue to harp on that makes the protesters even more determined to fix the country's economy.
The lack of US Government Regulation, in the Bush/Cheney Presidential years, has resulted in so many huge US Multinational Corps paying very little tax. They were able to do this by shifting income and the related jobs overseas to foreign tax havens, like Ireland, Singapore, China, even Puerto Rico, and many more places.
In my research in my most recent 6 posts, I found 440 US Corps with Pretax Income above $500 mil each, which generated a massive Total Pretax Income of nearly $1.2 trillion in the most recent year. These 440 Corps paid US Federal Income Tax of $117 billion in the most recent year, resulting in an effective US Federal Income Tax Paid Rate of a very modest 9.8%.
And the 225 US Corps, with a very heavy international presence, included in these 440 Big Corps had an effective US Federal Income Tax Rate Paid of only 6.8% in the most recent year.
There were only 24 of these 440 US Corps which had Pretax Income above $10 billion each in the most recent year. But these 24 Gargantuan Corps generated a massive $449 bil in Pretax Income in the most recent year, or a staggering 38% of the Total Pretax Income of all 440 of these Big Corps.
And how much US Federal Income Tax did these 24 huge Corps pay in the most recent year as related to this $449 billion of Total Pretax Income? Only $32 billion, or an effective US Federal Income Tax Rate Paid of a meager 7.2%
Also, the Big Financial Corps had an incredibly low US Federal Income Tax Rate Paid in the most recent year. They receive so many tax incentives even though they were the cause of the US financial meltdown, which the 99% and the US small businesses are still severely suffering from.
And the very fortunate US citizens who have jobs would love to go their company's Human Resource Dept and see if they could change their income tax status to that of a very low-taxed US Big Multinational Corp, or even a very low-taxed US Big Financial Corp, or better yet, an even very lower taxed US Big Oil Corp.
There clearly is way too much concentration of wealth in the huge US Multinational Corps. And with their awesome power, they now effectively control the country, with the Republicans in the US House and US Senate very successfully acting as their facilitators, under the deceptive pretense of helping small businesses.
The protesters are a very bright lot. They perceptively have it all figured out. They know that the Republican Leadership in both the US House and US Senate are simply being used as pawns of these huge US Big Multinational Corps.
The US Republican leadership, acting on behalf of Big Corps, think the protesters will shortly throw in the towel. They just don't get it.
The protesters are out to change the way the country's government works. Their efforts are noble and very patriotic. You'll see their ranks keep growing, as more and more people see their interests as common with that of the protesters.
Clearly, unions and veterans have common interests with the protest movement. So do government workers: federal, state, and local. So do college students, both undergrads and graduate students. So do recent college grads. So do recent high school grads. So do all of the middle class. So do homeowners underwater on their mortgages. So do retired people. So do all small businesses. So do most larger, purely domestic businesses. And so do all progressives.
I think the protesters should thoroughly review the Obama Administration's American Jobs Act and try to shape it to make it much more effective as a job creator. It is pretty clear that the Republicans in both the US House and the US Senate have decided to shirk this critical responsibility.
Many of these very bright, very talented protesters are college graduates with massive amounts of Education Debt, and with little opportunity to find a job in their field of expertise. I think they should push for wise job creation initiatives that would also permit them to reduce their Education Loans.
And I think these protesters should also be pushing for a much more extensive job creation plan.
Clearly, tax reform should be part of it. The key is reducing the US federal income tax rate on all businesses, with a particular focus on the tax rate on the lower amounts of business income. The small businesses create the jobs, and thus should be getting the tax incentives.
And the Big US Multinational Corps should be funding the lower tax rate on the lower amounts of business income. This can wisely be done by closing all of the many, gigantic corporate tax loopholes and also by instituting a minimum tax each year on all large Multinational Corps, which are overdosing on shipping income, and the related jobs, overseas.
I think the protesters will be on the side of the small businesses here. In addition to being fair, it is also in their best interests, because US job creation will be driven by US small business growth.
I see a battle with the US Big Corps, and their US Republican House and Senate Leadership parrots, on one side, as Goliath, and the protesters on the other side, as David.
The Big Corps think that the protesters will be no match.....after all, there is no one lobbying on their behalf.
I think the Big Corps are clearly understating the power, intelligence, and resolve of these protesters.
I'm betting that the protesters will eventually win out and prevent the Big Corps from obtaining the out-sized tax benefits they are expecting to receive from Tax Reform.
There is no way these astute protesters are going to permit US Big Corps to get their US Federal Income Tax Rate on US Taxable Income above $1 bil reduced much below the current 35% tax rate.
And there is also no way these wise protesters are going to permit US Big Corps to repatriate, with a tax holiday, their roughly $2 trillion of foreign earnings, sitting in foreign tax havens.
And there is no way these perceptive protesters are going to permit these US Big Corps to continue to take advantage of all of these massive amounts of Corporate Tax Loopholes.
If the US Big Corps were to again get their way on their totally unfair, unconscionably greedy Corporate Tax Demands in the Current Tax Reform Supercommittee Negotiations, it wouldn't surprise me if you see these protesters forming a Third Party, perhaps even calling it something like the People's Party.
