The Obama Administration's Framework for Business Tax Reform has some very creative, extremely effective provisions which will result in a massive long-term shift of income and related jobs, now located overseas, back to the US.
Further, this Framework also provides very strong incentives for businesses to locate new facilities in the US, rather than overseas.
In addition, it wipes out many abusive, very damaging provisions the US Congress inserted into the Tax Code, which incentivizes companies to shift income and the related US jobs overseas to foreign tax havens.
Let me highlight these main perceptive provisions in this Framework:
***Slashing of US Corporate Federal Income Tax Rates from 35% to 28%.....a massive 20% Tax Reduction
***Minimum Tax on Foreign Earnings
***R&E Tax Credit Made Permanent
***Enhancement of the US Production Activities Tax Deduction
***Moving Expenses for Shipping US Jobs Overseas No Longer Tax Deductible
***20% Income Tax Credit for Expenses of Moving Operations Back to the US
***Prevention of Abusive, Aggressive Transfer Pricing of Assets and Services, Which Shift Profits to Lower Taxed Jurisdictions
***Particular Focus on Prevention of Abusive, Aggressive Tax Strategies Related to Intangible Assets, Particularly Intellectual Property and its Related Royalty Income and Deductions, Which Shift Profits to Lower Taxed Jurisdictions
***Delay Interest Deduction Related to Overseas Investment Until the Related Income is Taxed in the US.....a Very Fair Matching of Taxable Income and Tax Deduction
What this Framework also does is to substantially reduce the unfair advantage very wealthy, sophisticated Big Corps have over smaller business in their ability to manipulate the International Tax Provisions the US Congress put into the US Tax Code.
And this Framework perceptively and clearly retains the current Tax on Repatriation of Foreign Earnings. And it also perceptively and clearly rejects a Pure Global Territorial Tax System.
Under a Pure Territorial System, US income taxes are never paid on foreign income. Thus, US multinational corporations are even substantially more incentivized to further game the system of shifting income, and the related jobs, to low taxed foreign jurisdictions.
This is the last thing the US economy and US job creation needs.
Under a Pure Territorial System, when low taxed profits, earned in foreign tax havens, are repatriated back to the US, there is no US income tax paid period on these earnings.
Now frankly, I would have gone much further than the Obama Administration did in its perceptive Framework.
When I get some time, I will lay out other initiatives which would make this insourcing of US jobs even stronger.
So anyway, in this post, I am focusing on the extent of Global Shifting of Income, and the related jobs, from the US to lower taxed foreign jurisdictions. It's clearly massive.
And particularly, I will focus on the Shifty 50 Largest US Global Corps.
Let me start off with the 50 US Big Corps with the highest amount of Foreign Pretax Income in 2011.
.............................................................................2011
.............................................2011.......2011...........US
...........................................Foreign......US..........Pretax
............................................Pretax.....Pretax......Income
...........................................Income...Income........Mix
..........................................(millions of dollars)
Exxon Mobil........................61,746.....11,511.........16%
Chevron..............................37,412.....10,222.........21%
Apple..................................24,000.....10,205.........30%
Microsoft............................19,209.......8,862.........32%
Pfizer..................................15,016.....(2,254).......-18%
Citigroup.............................13,100......1,524.........10%
Phillip Morris.......................12,532............0..........0%
ConocoPhillips....................11,784.....11,217.........49%
IBM...................................11,287.......9,716.........46%
JPMorgan Chase................10,413.....16,336.........61%
General Electric....................9,854.....10,244.........51%
Bank of America..................9,031......(9,261)........NM
Johnson & Johnson..............8,727.......3,634.........29%
Coca Cola...........................8,429.......3,010.........26%
Google................................7,633........4,693.........38%
Freeport McMoran..............6,706.......2,112.........24%
Cisco Systems.....................6,611.......1,214.........16%
Procter & Gamble...............6,206.......8,983.........59%
Occidental Petroleum..........6,035.......4,806.........44%
Hewlett Packard.................5,943.......3,039.........34%
Apache..............................5,720.......2,373.........29%
Walmart (FYE Jan 11).......5,140.....18,398.........78%
Oracle...............................5,033.......6,378.........56%
PepsiCo............................4,870.......3,964.........45%
Marathon Oil.....................4,869........(442).......-10%
Abbott Labs......................4,835.........364..........7%
McDonalds.......................4,809.......3,203.........40%
Merck..............................4,708.......2,626.........36%
Caterpillar........................4,475.......2,250.........33%
United Technologies.........4,312.......3,293.........43%
Eli Lilly (1).......................4,066.......1,284.........24%
Schlumberger...................4,013.......2,325.........37%
Dell (FYE Jan 12)............3,875..........365..........9%
Kraft Foods.....................3,626.......1,146.........24%
3M..................................3,515.......2,516.........42%
Southern Copper..............3,450............(1).........0%
DuPont............................3,422..........860.........20%
Prudential Financial..........3,324.......1,793.........35%
MetLife (2)......................3,245.......5,152.........61%
Dow Chemical.................3,215..........386.........11%
Intel.................................3,122.....14,659.........82%
General Motors................3,102.......2,883.........48%
Morgan Stanley................2,859.......3,255.........53%
Accenture Ltd.................2,793..........719.........20%
Qualcomm......................2,703........2,984.........52%
AES...............................2,693.........(514).......-24%
Colgate Palmolive...........2,691........1,098.........29%
Bristol Myers Squibb.......2,645........4,336.........62%
Amgen...........................2,600........1,550.........37%
Baxter............................2,410..........399.........14%
Total all 50..................403,814....199,415.........33%
(1) Eli Lilly includes its significant pretax income in its Puerto Rico tax haven in with its US Pretax Income.
(2) MetLife PTI amounts are its Pretax Operating Income.
Yeah, that's right, only one-third of the Total Worldwide Profits of these 50 largest US Global Giants are earned in the US.
No wonder the US unemployment rate is so high, the US underemployment rate is so high, the US median wage is so low, and the US Deficit is so incredibly high.
But what industries are causing the major US economic problem with the shifting of income overseas?
Many pundits contend it's mainly those greedy, high IQ, clever-by-half Technology companies, sending their profits and jobs to places like China, Singapore, and Ireland.
But you know what? It's not the Technology sector, but rather mainly Big Pharma and Other Medical and Big Oil and Gas.
Here's the breakdown of the Foreign Pretax Income of these 50 US Global Giants by Sector:
...........................................................................2011
...........................................2011........2011..........US
.........................................Foreign.......US.........Pretax
..........................................Pretax......Pretax.....Income
.........................................Income....Income.......Mix
........................................(millions of dollars)
Big Pharma & Other Medical
Pfizer...............................15,016.....(2,254).......-18%
Johnson & Johnson.............8,727......3,634.........29%
Abbott Labs.......................4,835.........364..........7%
Merck................................4,708......2,626.........36%
Eli Lilly...............................4,066......1,284.........24%
Bristol Myers Squibb...........2,645......4,336.........62%
Amgen...............................2,600......1,550.........37%
Baxter...............................2,410.........399.........14%
Total all 8 Medical............45,007.....11,939.........21%
Big Oil and Gas
Exxon Mobil....................61,746.....11,511.........16%
Chevron..........................37,412.....10,222.........21%
ConocoPhillips.................11,784.....11,217.........49%
Occidental Petroleum........6,035.......4,806.........44%
Apache.............................5,720.......2,373.........29%
Marathon Oil....................4,869.........(442).......-10%
Schlumberger...................4,013........2,325.........37%
Total all 7 Oil and Gas...131,579......42,012.........24%
Big Financial
Citigroup.......................13,100.......1,524.........10%
JPMorgan Chase...........10,413.....16,336.........61%
Bank of America..............9,031.....(9,261)........NM
Prudential Financial..........3,324.......1,793.........35%
MetLife...........................3,245.......5,152.........61%
Morgan Stanley...............2,859.......3,255.........53%
Total all 6 Financial........41,972.....18,799.........31%
Big Technology
Apple...........................24,000.....10,205.........30%
Microsoft.....................19,209.......8,862.........32%
IBM............................11,287.......9,716.........46%
Google..........................7,633.......4,693.........38%
Cisco Systems...............6,611.......1,214.........16%
Hewlett Packard...........5,943.......3,039.........34%
Oracle..........................5,033.......6,378.........56%
Dell.(FYE Jan 12)........3,875..........365..........9%
Intel.............................3,122.....14,659.........82%
Accenture Ltd..............2,793..........719.........20%
Qualcomm...................2,703.......2,984.........52%
Total 11 Technology...92,209.....62,834.........41%
Big Other Sectors
Phillip Morris.............12,532.............0..........0%
General Electric...........9,854.....10,244.........51%
Coca Cola...................8,429......3,010.........26%
Freeport McMoran......6,706......2,112.........24%
Procter & Gamble.......6,206.......8,983.........59%
Walmart(FYE Jan 11).5,140.....18,398.........78%
PepsiCo......................4,870......3,964.........45%
McDonalds.................4,809......3,203.........40%
Caterpillar...................4,475......2,250.........33%
United Technologies....4,312......3,293.........43%
Kraft Foods................3,626......1,146.........24%
3M.............................3,515......2,516.........42%
Southern Copper.........3,450...........(1).........0%
DuPont.......................3,422........860.........20%
Dow Chemical............3,215........386.........11%
General Motors..........3,102......2,883.........48%
AES...........................2,693.......(514).......-24%
Colgate Palmolive.......2,691......1,098.........29%
Total all 18 Other......93,047....63,831.........41%
Total all 50.............403,814...199,415.........33%
But it's not just the 50 largest US Multinational Corps. Here's the second 50 largest US Multinational Corps with the highest Foreign Pretax Income in 2011.
............................................................................2011
...........................................2011........2011...........US
.........................................Foreign........US..........Pretax
..........................................Pretax......Pretax......Income
.........................................Income....Income........Mix
........................................(millions of dollars)
Medtronic............................2,276.......1,447..........39%
Hess....................................2,250.........211...........9%
Corning...............................2,241.........972..........30%
Ebay...................................2,164.......1,746..........45%
Las Vegas Sands................2,149..........(54).........-3%
Ford...................................2,138.......6,043..........74%
Tyco Intl.............................2,119........(226)........-12%
Honeywell..........................1,964..........318..........14%
Covidien Ltd......................1,917..........299..........13%
Carnival.............................1,912.............0...........0%
EMC.................................1,800.......1,500..........45%
Mosaic..............................1,794.......1,477..........45%
Cummins...........................1,790..........881..........33%
Nike.................................1,760.......1,084..........38%
Emerson Electric...............1,740.......1,891..........52%
State Street Corp..............1,700..........836..........33%
National Oilwell Varco......1,640.......1,282..........44%
American Express.............1,633.......5,323..........77%
Deere...............................1,605.......2,618..........62%
Praxair.............................1,561..........762..........33%
Gilead Sciences................1,480........2,171..........59%
Yum Brands.....................1,393..........266..........16%
TE Connectivity................1,361..........268..........16%
Mastercard......................1,331.......1,415..........52%
Ingersoll-Rand plc............1,331........(718).......-117%
Johnson Controls.............1,324..........787..........37%
Marsh & McLennan........1,283..........121...........9%
Bank of NY Mellon.........1,281.......2,336..........65%
Danaher..........................1,280.......1,168..........48%
Noble Energy..................1,252........(537)........-75%
Priceline..........................1,223.........145..........11%
Estee Lauder..................1,189........(163)........-16%
Eaton.............................1,178..........375..........24%
Texas Instruments...........1,164.......1,791..........61%
Alcoa.............................1,161..........(98).........-9%
Illinois Tool Works..........1,141.......1,452..........56%
Applied Materials...........1,121.......1,257..........53%
Murphy Oil....................1,110..........441..........28%
Broadcom.....................1,088.........(132)........-14%
Aon...............................1,083..........301..........22%
Boston Scientific............1,079.........(437)........-68%
Stryker..........................1,073..........613..........36%
Franklin Resources........1,028.......1,596..........61%
Forest Labs..................1,007..........331..........25%
Visa..............................1,006.......4,650..........82%
Celgene........................1,003..........417..........29%
Goldman Sachs................995.......5,174..........84%
ArcherDanMidland..........980.......2,035..........67%
Omnicom Group..............968..........581..........38%
Agilent Technologies.......944............88...........9%
Total all 50.................73,010......56,104.........43%
While Total US Pretax Income of 43% of Total Worldwide Profits for #s 51 thru #100 isn't anything to write home about, it is a bit better than the 33% for #s 1 thru 50.
And when you sort this second top 50 by sector, you again get the same result that the substantial problem of global income shifting rests much more with Big Oil and Gas and Big Medical than it does with Big Technology.
Here's the breakdown of the Foreign Pretax Income of these second 50 US Global Giants by Sector:
..............................................................................2011
.............................................2011........2011...........US
...........................................Foreign........US..........Pretax
............................................Pretax......Pretax......Income
...........................................Income....Income........Mix
..........................................(millions of dollars)
Oil and Gas
Hess 2,250 211 9%
National Oilwell Varco 1,640 1,282 44%
Noble Energy 1,252 (537) -75%
Murphy Oil 1,110 441 28%
Total all 4 6,252 1,397 18%
Medical
Medtronic 2,276 1,447 39%
Covidien Ltd 1,917 299 13%
Gilead Sciences 1,480 2,171 59%
Boston Scientific 1,079 (437) -68%
Stryker 1,073 613 36%
Forest Labs 1,007 331 25%
Celgene 1,003 417 29%
Total all 7 9,835 4,841 33%
Technology
Ebay 2,164 1,746 45%
EMC 1,800 1,500 45%
Priceline 1,223 145 11%
Texas Instruments 1,164 1,791 61%
Applied Materials 1,121 1,257 53%
Broadcom 1,088 (132) -14%
Agilent Technologies 944 88 9%
Total all 7 9,504 6,395 40%
Other Sectors
Corning 2,241 972 30%
Las Vegas Sands 2,149 (54) -3%
Ford 2,138 6,043 74%
Tyco Intl 2,119 (226) -12%
Honeywell 1,964 318 14%
Carnival 1,912 0 0%
Mosaic 1,794 1,477 45%
Cummins 1,790 881 33%
Nike 1,760 1,084 38%
Emerson Electric 1,740 1,891 52%
Deere 1,605 2,618 62%
Praxair 1,561 762 33%
Yum Brands 1,393 266 16%
TE Connectivity 1,361 268 16%
Ingersoll-Rand plc 1,331 (718) -117%
Johnson Controls 1,324 787 37%
Danaher 1,280 1,168 48%
Estee Lauder 1,189 (163) -16%
Eaton 1,178 375 24%
Alcoa 1,161 (98) -9%
Illinois Tool Works 1,141 1,452 56%
ArcherDanMidland 980 2,035 67%
Omnicom Group 968 581 38%
Total all 23 36,079 21,719 38%
Financial
State Street Corp 1,700 836 33%
American Express 1,633 5,323 77%
Mastercard 1,331 1,415 52%
Marsh & McLennan 1,283 121 9%
Bank of NY Mellon 1,281 2,336 65%
Aon 1,083 301 22%
Franklin Resources 1,028 1,596 61%
Visa 1,006 4,650 82%
Goldman Sachs 995 5,174 84%
Total all 9 11,340 21,752 66%
Total all 50 73,010 56,104 43%
It's pretty clear to me that the Big Oil and Big Pharma lobbyists were sitting at the same table as the US Senate Finance Committee and the US House Ways and Means Committee when the international tax provisions in the Tax Code were both written and subsequently changed.
This is one of the many reasons the 99% is so disappointed with the US Congress, which consistently legislates for the 1%, not for the entire country.
And this also tells you why the favorable rating of the US Congress is so incredibly low, and is going much lower. The country is sick of it. The only part of the US Government which is now working for the entire 100% of the country is the Obama Administration.
Let's test to see how reasonable this extremely low US Pretax Income as a Percentage of Worldwide Pretax Income is. Does it pass the smell test?
The Revenue and Asset Mixes below come from the Segment footnotes filed with the SEC for the fiscal year ended 2011 financial statements.
Below here are the US Pretax Income Mix, the US Revenue Mix, and the US Asset Mix for the top 67 Big Multinational Corps with the highest Foreign Pretax Income in 2011.
The US Revenue Mix is mostly based on where the sales and services were made, although in some cases, it is based on the location of the customer.
The US Asset Mix is usually based on Total Long-lived Assets, although it is sometimes Total Property Plant and Equipment, net, and in a few cases, Total Assets.
.........................................US
.......................................Pretax..........US................US
......................................Income.....Revenue.........Asset
........................................Mix.............Mix..............Mix
Exxon Mobil....................16%.............32%.............42%
Chevron..........................21%.............40%.............50%
Apple..............................30%.............39%.............54%
Microsoft........................32%.............54%.............86%
Pfizer............................-18%.............40%.............47%
Citigroup........................10%.............48%..............ND
Phillip Morris....................0%..............0%..............0%
ConocoPhillips................49%.............65%.............47%
IBM...............................46%.............35%.............50%
JPMorgan Chase............61%.............75%.............66%
GE.................................51%.............47%.............30%
Johnson & Johnson.........29%.............44%.............49%
Coca Cola......................26%.............40%.............54%
Google...........................38%.............47%.............86%
Freeport McMoran.........24%.............34%.............36%
Cisco Systems................16%.............50%.............84%
Procter & Gamble..........59%.............37%.............51%
Occidental Petroleum......44%.............63%.............79%
Hewlett Packard.............34%.............35%.............50%
Apache...........................29%.............36%.............46%
Oracle............................56%.............43%.............62%
PepsiCo.........................45%.............50%.............53%
Marathon Oil................-10%.............48%.............41%
Abbott Labs....................7%.............41%.............43%
McDonalds....................40%.............32%.............33%
Merck...........................36%.............43%.............65%
Caterpillar.....................33%.............30%.............51%
United Technologies......43%.............52%.............48%
Eli Lilly..........................24%.............53%.............59%
Schlumberger................37%.............32%.............38%
Kraft Foods..................24%.............40%.............45%
3M...............................42%.............34%.............52%
Southern Copper............0%.............31%..............ND
DuPont.........................20%.............35%.............65%
Prudential Financial.......35%.............59%..............ND
MetLife........................61%.............69%.............76%
Dow Chemical.............11%.............32%.............50%
Intel.............................82%.............16%.............70%
General Motors............48%.............53%.............45%
Morgan Stanley............53%.............69%.............75%
Accenture Ltd..............20%.............35%.............23%
Qualcomm...................52%..............6%.............74%
AES...........................-24%.............13%.............33%
Colgate Palmolive.........29%.............22%.............33%
Bristol Myers Squibb....62%.............65%.............67%
Amgen.........................37%.............77%.............58%
Baxter.........................14%.............41%.............38%
Medtronic...................39%.............57%.............77%
Bank of America(1).Negative...........79%.............87%
Walmart(FYE11)........78%.............74%.............68%
Dell(FYE12).................9%.............49%.............74%
Hess.............................9%.............83%.............46%
Corning.......................30%.............21%.............37%
Ebay...........................45%.............47%.............95%
Las Vegas Sands.........-3%.............18%.............24%
Ford...........................74%............522%.............57%
Tyco Intl....................-12%.............48%.............65%
Honeywell...................14%.............58%.............65%
Covidien Ltd...............13%.............55%.............75%
Carnival........................0%..............0%..............0%
EMC..........................45%.............53%.............85%
Mosaic.......................45%.............35%.............47%
Cummins....................33%.............41%.............57%
Nike..........................38%.............43%.............61%
Emerson Electric........52%.............41%.............54%
State Street Corp.......33%.............57%.............76%
NationalOilwellVarco.44%.............37%.............61%
Average of all 67.......31%............51%............55%
ND means Not Disclosed.
(1) Bank of America's US PTL Mix was more than a 4000% negative, and thus was excluded from the above total average US Pretax Income Mix of 31%.
Given the 20% plus spread between the Total Average US Pretax Income Mix and both the US Revenue Mix and the US Asset Mix, I suggest that the smell test isn't passed, not even close to being passed. In fact, there is a very stinky odor here. And the ones stuck with the economic suffering from continually having to smell this awful odor are the 99%.
All right, so there must be really something special about these US Big Corps wanting to shift their income overseas?
Well, there is.
From their SEC income tax footnote filings, below here is the just one year 2011 foreign tax breaks these 85 companies received by having their foreign earnings taxed somewhere other than in the US. The foreign tax break amount here represents the difference between these foreign earnings taxed at their actual foreign income tax rates vs at the US Federal Income Tax Rate of 35%.
…………………………(million of dollars)
Microsoft | 4,379 |
Apple | 3,898 |
Merck | 2,220 |
Hewlett Packard | 2,156 |
IBM | 2,100 |
GE | 2,090 |
Johnson & Johnson | 1,953 |
Phillip Morris | 1,567 |
Cisco Systems | 1,518 |
Google | 1,339 |
Citigroup | 1,258 |
Procter & Gamble | 1,215 |
Abbott Labs | 1,191 |
Oracle | 1,125 |
Ebay | 1,094 |
Coca Cola | 1,087 |
Amgen | 1,075 |
Qualcomm | 1,074 |
Dell(FYE12) | 814 |
Eli Lilly | 797 |
Intel | 782 |
PepsiCo | 769 |
Medtronic | 733 |
Carnival | 669 |
Schlumberger | 634 |
JPMorgan Chase | 615 |
Las Vegas Sands | 599 |
Bristol Myers Squibb | 593 |
Covidien Ltd | 543 |
Walmart(FYE11) | 518 |
Accenture Ltd | 513 |
Baxter | 510 |
DuPont | 480 |
EMC | 475 |
Caterpillar | 467 |
Kraft Foods | 453 |
Gilead Sciences | 444 |
Pfizer | 421 |
Goldman Sachs | 413 |
Boston Scientific | 409 |
Bank of America | 383 |
McDonalds | 377 |
Marvell Technology | 364 |
Tyco Intl | 359 |
Broadcom | 353 |
Johnson Controls | 351 |
United Technologies | 327 |
Danaher | 313 |
American Express | 306 |
Celgene | 300 |
Nike | 290 |
3M | 277 |
Bunge Ltd | 258 |
TE Connectivity | 251 |
Mosaic | 245 |
Texas Instruments | 245 |
Dow Chemical | 242 |
Eaton | 241 |
Applied Materials | 240 |
Emerson Electric | 240 |
Forest Labs | 240 |
Honeywell | 237 |
Stryker | 231 |
Franklin Resources | 222 |
Yum Brands | 218 |
Corning | 212 |
Berkshire Hathaway | 208 |
Western Digital | 203 |
Ingersoll-Rand plc | 200 |
Praxair | 164 |
Xerox | 163 |
Aon | 159 |
Agilent Technologies | 153 |
National Oilwell Varco | 152 |
Visa | 150 |
ArcherDanMidland | 148 |
Analog Devices | 144 |
Mattel | 139 |
Mastercard | 133 |
PPG Industries | 128 |
Priceline | 126 |
Cummins | 123 |
Ford | 123 |
Air Prods & Chems | 116 |
State Street Corp | 109 |
Total all 85 | 55,152 |
But why aren’t the Big Oil Corps included above? That’s got to be good, right?
Well actually it’s not. It’s really bad.
Big Oil Corps deceptively treat a good chunk of their royalties paid to foreign governments for the depletion of the foreign country’s natural resources as foreign income tax expense.
And the reason this is especially bad is that Big Oil Corps get a 100% dollar-for-dollar US Federal Income Tax Credit for these amounts of royalties paid that they deceptively treat as foreign income tax expense.
And both the SEC and the IRS permit this.
And the US government doesn’t understand why the 99% doesn’t trust them?
And the US Congress doesn’t understand why its approval rating is so low, when it permits Big Oil Corps to get such incredibly favorable US federal income tax treatment for their foreign royalties paid to foreign governments?
And lastly, below here are the cumulative unremitted foreign earnings of Big Multinational Corps, which disclosed such amounts in their income tax footnotes and which amounts exceeded $4 bil at the most recent balance sheet date.
These unremitted foreign earnings result from the shifting of income, and the related US jobs, to low taxed foreign jurisdictions.
……………………………(billions of dollars)
GE | 102.0 |
Pfizer | 63.0 |
Exxon Mobil | 47.0 |
Microsoft | 44.8 |
Merck | 44.3 |
Johnson & Johnson | 41.6 |
IBM | 37.9 |
Cisco Systems | 36.7 |
Citigroup | 35.9 |
Procter & Gamble | 35.0 |
PepsiCo | 34.1 |
Abbott Labs | 31.9 |
Hewlett Packard | 29.1 |
Google | 24.8 |
Chevron | 24.4 |
Coca Cola | 23.5 |
Apple | 23.4 |
JPMorgan Chase | 21.8 |
Eli Lilly | 20.6 |
Goldman Sachs | 20.6 |
Amgen | 19.5 |
Bristol Myers Squibb | 18.5 |
Bank of America | 18.5 |
Walmart (Jan 2011) | 17.0 |
TE Connectivity | 17.0 |
Oracle | 16.1 |
Dell (Jan 2012) | 15.9 |
Phillip Morris | 15.0 |
Medtronic | 14.9 |
Intel | 14.2 |
Apache | 13.7 |
Qualcomm | 13.5 |
DuPont | 13.4 |
Caterpillar | 13.0 |
McDonalds | 12.6 |
Boston Scientific | 10.3 |
Kraft Foods | 10.2 |
Dow Chemical | 10.1 |
Ebay | 10.0 |
Baxter | 8.9 |
Corning | 8.9 |
NewsCorp | 8.6 |
Kimberly Clark | 8.4 |
Alcoa | 8.3 |
ArcherDanMidland | 8.2 |
Honeywell | 8.1 |
Xerox | 8.0 |
Danaher | 7.8 |
American Express | 7.7 |
Praxair | 7.2 |
3M | 7.1 |
Bunge Ltd | 7.0 |
Ford | 6.9 |
Ingersoll-Rand plc | 6.6 |
Berkshire Hathaway | 6.6 |
Morgan Stanley | 6.5 |
EMC | 6.4 |
Eaton | 6.4 |
IllinoisTool Works | 6.3 |
General Motors | 6.2 |
Emerson Electric | 5.9 |
Gilead Sciences | 5.8 |
Johnson Controls | 5.7 |
Las Vegas Sands | 5.6 |
Stryker | 5.6 |
Occidental Petroleum | 5.5 |
Forest Labs | 5.4 |
Hess | 5.2 |
Murphy Oil | 4.9 |
Franklin Resources | 4.9 |
Valero Energy | 4.9 |
Western Digital | 4.7 |
Thermo Fisher Sci | 4.7 |
Mattel | 4.5 |
Intl Paper | 4.5 |
Nike | 4.4 |
HJ Heinz | 4.4 |
ConocoPhillips | 4.2 |
Agilent Technologies | 4.2 |
Marsh & McLennan | 4.1 |
Texas Instruments | 4.1 |
Air Prods & Chems | 4.1 |
Ally Financial | 4.1 |
Total all 83 | 1,283.3 |
Yeah, that’s almost $1.3 trillion, and there are some Big Multinational Corps, United Technologies to just name one, which didn’t disclose its unremitted foreign earnings.
And yeah, that’s $102 bil just for GE. And my best guess is that Apple’s $23.4 bil will be exceeding GE’s $102 bil within 5 years.
You can see why getting a tax free holiday for foreign earnings repatriation is such a huge deal with Big Multinational Corps.
By shifting all of this income, and related US jobs, to lowed taxed foreign jurisdictions, these Big Multinational Corps wrecked the US economy, substantially increased US unemployment and US underemployment, markedly reduced the US median wage, and ballooned the US Deficit.
So now, they want the US Government to reward them for doing all of this by effectively turning their company into a Tax-free Municipal Bond, by letting them repatriate all of these extremely low taxed foreign earnings in a tax holiday?
And the Big Corps, and their US Congress huge facilitators, see nothing wrong with this?
And they also don’t see why this would bother the 99%?
