Monday, April 18, 2016

Let's Examine Verizon CEO Lowell McAdam's Assertion That Bernie Sanders Has "Uninformed Views" on What US Federal Income Tax Verizon Has Paid

Verizon Communication's CEO Lowell McAdam just recently stated that Bernie Sanders has "uninformed views" when Bernie states that Verizon has paid very little in the way of US Federal Income Tax.

From a review of its SEC filings, below here is the Audited by a Big 4 CPA Firm Verizon's US Pretax Income and US Federal Income Tax Paid in each of the most recent seven years as disclosed in its income tax footnotes:

Verizon Verizon US Fed

US US Fed Income

Pretax Income Tax Rate
Income Tax Paid Paid

 $ mils  $ mils %

      27,639         5,476 19.8%
      12,992         2,657 20.5%
      28,833           (197) -0.7%
        9,336            223 2.4%
        9,724            193 2.0%
      11,921           (705) -5.9%
      12,625           (611) -4.8%

Total all 7 years
    113,070         7,036 6.2%

Yeah that's right, Verizon paid a very miniscule 6.2% US Federal Income Tax Rate for the most recent seven years combined.  Verizon stockholders have to be concerned here about its CEO, rather than Bernie Sanders, having "uninformed views" about what Verizon's effective US Federal Income Tax Rate Paid is.

And in 3 of the 7 years, rather than paying US Federal Income Tax, Verizon got US Federal Income Tax Refunds.  Go Figure!

Verizon union workers have to be furious, not just because Verizon has only paid a 6.2% US Federal Income Tax Rate in the most recent 7 years combined, but also because Verizon generated Audited Net Income of $18.375 Bil in 2015, up a massive 54% from 2014 Audited Net Income of $11.956 Bil.  And what did Verizon union workers get?  The economic shaft!  Where is the economic fairness here?