I would close all corporate federal income tax loopholes, except the clearly job-creating R&D tax credit, which should be made permanent, and with higher R&D tax credits going to the smaller businesses. And to be much more effective, the R&D tax credit must be simplified.
But I think that clearly the dumbest thing to do is what nearly every self-serving, short-sighted Republican is now proposing…..simply reduce the corporate federal income tax rate across the board, and watch the jobs trickle down from it. What absolute incredible lunacy.
If this were done, you would see almost no job creation from it, particularly in the near term. The only thing accomplished by across-the-board lower US Corporate Federal Income Tax Rates is much higher Corporate after-tax profits. Such a deal!
What has to be done to create a lot of jobs in the near term is massive short-term business tax incentives, like the investment tax credit, the jobs tax credit, and the R&D tax credit.….and all three tax credits done on a massive scale, and right away, and all earned only if the business gets a sufficient number of net jobs added, that must remain for a reasonable period of time, on a total company payroll count basis, or the tax credits are subsequently recaptured.
And the corporate federal income tax rates should also be permanently reduced, but it has to be done very wisely.
In addition to permanently lowering the US Federal Corporate Income Tax Rates on all US Corps, it is critical that this be accompanied by a very healthy US corporate federal minimum income tax, with progressive minimum tax rates applied as worldwide pretax income of each Big Corp rises (say the first $10 bil minimum taxed at 10%, the next $20 bil minimum taxed at 15%, the following $30 bil minimum taxed at 20%, and any worldwide income above $60 bil in each year minimum taxed at 25%).
And in all fairness, there should also be an annual level of worldwide pretax income that the minimum tax would not apply to, such as the first $100 mil earned in each year by each US business.
What the above minimum tax on large US Corps will accomplish is that instead of US Big Corps trying to shift income and jobs from the US to lower-taxed foreign tax havens, they will be motivated to instead do just the opposite.
Why? Because if a US Big Corp locates the jobs overseas in a foreign tax haven, it will still probably get a huge chunk of US federal income taxes owed, due to the very healthy, progressive US minimum tax that will apply.
In addition, to maximize US job creation, it only makes sense to have a lower Federal Corporate Income Tax Rate on small and medium-sized businesses, than that on large corporations. A wisely designed progressive US Corporate Federal Income Tax Rate system would maximize US job creation, and also be fairer to smaller businesses.
The Suits will have to run the numbers, but if all of the Corporate Tax Loopholes are closed, except for the R&D tax credit, then I think something like the following progressive US Corporate Federal Income Tax Rates would make sense, and optimally do the best for the US economy and US job creation, as well as also making a very substantial and fair dent in the US Debt, assuming the objective is to reduce Medicare Costs significantly, but not reduce Medicare Benefits:
Taxable Income Range.................Corporate Tax Rate
.....first $100,000.................................10%
.....$100,000 to $500,000...................14%
.....$500,000 to $1 mil.........................18%
.....$1 mil to $10 mil..............................22%
.....$10 mil to $100 mil.........................26%
.....$100 mil to $1 bil............................30%
.....above $1 bil.....................................34%
On the other hand, if all of the Corporate Tax Loopholes are closed, except for the R&D tax credit, then I think something like the following progressive US Corporate Federal Income Tax Rates would make sense, and optimally do the best for the US economy and US job creation, as well as also making a very substantial and fair dent in the US Debt, assuming the objective is to both reduce Medicare Costs significantly and also to reduce Medicare Benefits significantly:
Taxable Income Range.................Corporate Tax Rate
.....first $100,000.................................10%
.....$100,000 to $500,000...................13%
.....$500,000 to $1 mil.........................16%
.....$1 mil to $10 mil..............................19%
.....$10 mil to $100 mil.........................22%
.....$100 mil to $1 bil............................25%
.....above $1 bil.....................................28%
Tuesday, September 6, 2011
Monday, September 5, 2011
Big Corp Tax Loophole Closer #50: Minimum Tax on Other Sector Big Corp Worldwide Profits
So far, I have studied Big Corps in 6 Major US Sectors which have paid incredibly meager amounts of US Federal Income Taxes.
My recommendation is for the US Government to put a minimum US federal income tax on all of these US Big Corps, which should be used to fund a combination of wise US job creation, a US debt reduction, and a lower US Federal Income Tax Rate for all smaller and medium-sized US businesses.
Here is a summary of my projected positive CBO scoring to the US Government over the next 10 years, assuming this minimum US Federal Income Tax would be set at least at either 10% or 15% of Worldwide Consolidated Pretax Income of every US Big Corp in each year.
…………………….Positive CBO Scoring Next 10 Years
………………………………….................Minimum Tax
…………………………………................10%...........15%
………………………………...........(billions of US dollars)
Big US Oil Corps……………….........273.5………480.5
Big US Financial Corps………….....259.4………345.0
Big US Conglomerate Corps……...131.3……….163.0
Big US Health Care Corps………......95.2……….142.1
Big US High Tech Corps………….....73.0……….158.7
Big US Telecom Corps…………….....72.9……….110.2
Total of these 6 Major Sectors....905.3…….1,399.5
In this post, I am addressing US Big Corps in all of the other Non-Utility US Sectors, other than the above 6 Sectors.
Altogether, there were 67 US Big Corps in 22 Other US Sectors that had Total Consolidated Pretax Income of at least $1.5 bil each in the most recent three years, and which also paid an effective US Federal Income Tax Rate of below 15% in 2010. Included in these 67 US Big Corps are several somewhat smaller Corps which I was interested in.
Here is the relevant 2010 financial information regarding these 67 US Big Corps:
.................................Current US...........................Effective
.................................Fed Inc Tax..Consolidated...Tax Rate
................................Paid(Benefit).........PTI.......Paid(Benefit)
.....................................2010..............2010............2010
........................................(million of $s).....
Big Food and Beverage Corps
MolsonCoors Brewing.........8................809.............1.0%
Coca Cola Enterprises.........8................746.............1.1%
Bunge, Ltd(1)....................33.............3,050.............1.1%
Kraft Foods.......................91.............3,642.............2.5%
Sara Lee............................13................487.............2.7%
HJ Heinz...........................39.............1,374.............2.8%
Coca Cola(2)...................470............9,709.............4.8%
Kellogg.............................97.............1,742.............5.6%
Mead Johnson Nutrition...38................634.............6.0%
ArcherDanielsMidland....251.............3,015.............8.3%
PepsiCo...........................932.............8,232............11.3%
ConAgra Foods...............157.............1,225............12.8%
Total 12 Food&Bev.......2,137...........34,665.............6.2%
Big Chemical Corps
Dow Chemical...............(576)...........2,802..........(20.6)%
DuPont.........................(109)............3,711............(2.9)%
Mosaic...........................135.............3,271..............4.1%
PPG Industries................62..............1,295..............4.8%
Praxair..........................133..............1,964..............6.8%
Air Products&Chems.....101..............1,394..............7.2%
Lubrizol.........................97..............1,004..............9.7%
Total 7 Chemicals........(157)............15,441............(1.0)%
Big Household/Personal Product Corps
Fortune Brands.............(61)................588............(10.4)%
Avon Products..............(21)................945.............(2.2)%
Procter & Gamble.......1,809............15,158.............11.9%
Estee Lauder.................127..............1,026.............12.4%
Colgate Palmolive(3).....427..............3,430.............12.4%
Kimberly Clark..............368..............2,550.............14.4%
Total 6 HH and PPs.....2,649............23,697.............11.2%
Big Mining Corps
Southern Copper(1)........40...............2,431..............1.6%
Freeport-McMoran......207...............8,512..............2.4%
Newmont Mining(1)......214...............3,997..............5.4%
Cliff's Natural Res..........108...............1,298..............8.3%
Peabody Energy............114...............1,113.............10.2%
Total 5 Big Mining.........683.............17,351..............3.9%
Big Industrial Machinery Corps
Eaton.............................(2)..............1,036.............(0.2)%
Ingersoll-Rand(1)...........29..............1,007...............2.9%
Dover.............................34.................925...............3.7%
Parker Hannifin.............121..............1,414...............8.6%
Total 4 Industr Mach....182..............4,382...............4.2%
Big Leisure and Entertainment Corps
Carnival..........................0...............1,979...............0.0%
Royal Caribbean..............0.................548...............0.0%
Mattel............................14.................847...............1.7%
Wyndham WW................55................563................9.8%
Total 4 Leisure&Entert...69..............3,937...............1.8%
Big Electric Equipment Corps
Whirlpool...................(101)...............586...........(17.2)%
Rockwell Automation....10................544...............1.8%
Cooper Industries.........29................530...............5.5%
Amphenol(1)................77................664..............11.6%
Total 4 Electric Equip....15.............2,324...............0.6%
Big US Defense Contractor Corps
Boeing..........................13.............4,507...............0.3%
Goodrich......................67................805...............8.3%
Raytheon....................205.............2,432...............8.4%
Total 3 US Defense
.....Contractors............285............7,744...............3.7%
Big Retail Corps
Supervalu(4)..................2.................347...............0.6%
Yum Brands................155..............1,594...............9.7%
Staples........................142..............1,357.............10.5%
Total 3 Retail..............299..............3,298...............9.1%
Big Farm/Construction Machinery Corps
Cummins(1)..................11...............1,617...............0.7%
Caterpillar..................247..............3,750...............6.6%
Total 2 Big Farm
.....and Construction...258..............5,367...............4.8%
Big Wholesaler Corps
CHS(1)............................9.................584...............1.5%
Avnet...........................64.................871...............7.3%
Total 2 Wholesalers......73..............1,455...............5.0%
Big Engineering/Construction Corps
Fluor............................22................560...............3.9%
KBR..............................56................586...............9.6%
Total 2 Eng & Constr.....78..............1,146...............6.8%
Big Packaging/Container Corps
Crown Holdings..............0................614...............0.0%
Ball Corp.......................49................606...............8.1%
Total 2 Packaging
.....and Containers........49..............1,220..............4.0%
Big Misc Equipment Corps
Joy Global...................33.................679...............4.9%
Flowserve....................13.................530...............2.5%
Total 2 Misc Equip.......46..............1,209...............3.8%
Big Transportation Corps
FedEx.........................79..............2,265...............3.5%
United Parcel Serv....776..............5,523..............14.1%
Total 2 Big
.....Transportation.....855.............7,788..............11.0%
Big Tobacco Corp
Phillip Morris Intl......157............10,324...............1.5%
Big Cogeneration Power Producer
AES(4).........................(8).............2,265.............(0.4)%
Big Advertising Agency Corp
Omnicom Group........107..............1,350...............7.9%
Big Forest/Paper Product Corp
Intl Paper................(249)................822............(30.3)%
Big Metal Corp
Nucor.......................(66)................267.............(24.7)%
Big Motor Vehicles/Parts Corp
Paccar........................25.................660.................3.8%
Big Apparel/Footwear Corp
Nike..........................289..............2,844................10.2%
Grand Total (67 Corps
….in 22 Sectors)..7,776..........149,556.................5.2%
(1) Above Current US Federal Income Tax also includes US State Income Tax.
(2) Coca Cola PTI excludes various large unusual transactions.
(3) Colgate Palmolive US Federal Income Tax also includes US State Income Tax and also all US Deferred Income Tax Expense.
(4) PTI excludes large Intangible Asset Impairments.
My proposal here is that all US Big Corps in these Other Sectors 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 Other Sector 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 $155.9 bil. When added to the similar earlier mentioned $905.3 bil related to the 6 Sectors I had already studied, that brings the total positive CBO scoring to the US Government to $1,061.2 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 $282.7 bil over the 10 years from 2012 to 2021 related to these 67 US Big Corps in these 22 Other Sectors. When added to the similar earlier mentioned $1,395.5 bil related to the 6 Sectors I had already studied, that brings the total positive CBO scoring to $1,682.2 bil…..yeah, almost $1.7 trillion.
Perhaps the best way to go on a minimum tax on US Big Other Sector 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.
My recommendation is for the US Government to put a minimum US federal income tax on all of these US Big Corps, which should be used to fund a combination of wise US job creation, a US debt reduction, and a lower US Federal Income Tax Rate for all smaller and medium-sized US businesses.
Here is a summary of my projected positive CBO scoring to the US Government over the next 10 years, assuming this minimum US Federal Income Tax would be set at least at either 10% or 15% of Worldwide Consolidated Pretax Income of every US Big Corp in each year.
…………………….Positive CBO Scoring Next 10 Years
………………………………….................Minimum Tax
…………………………………................10%...........15%
………………………………...........(billions of US dollars)
Big US Oil Corps……………….........273.5………480.5
Big US Financial Corps………….....259.4………345.0
Big US Conglomerate Corps……...131.3……….163.0
Big US Health Care Corps………......95.2……….142.1
Big US High Tech Corps………….....73.0……….158.7
Big US Telecom Corps…………….....72.9……….110.2
Total of these 6 Major Sectors....905.3…….1,399.5
In this post, I am addressing US Big Corps in all of the other Non-Utility US Sectors, other than the above 6 Sectors.
Altogether, there were 67 US Big Corps in 22 Other US Sectors that had Total Consolidated Pretax Income of at least $1.5 bil each in the most recent three years, and which also paid an effective US Federal Income Tax Rate of below 15% in 2010. Included in these 67 US Big Corps are several somewhat smaller Corps which I was interested in.
Here is the relevant 2010 financial information regarding these 67 US Big Corps:
.................................Current US...........................Effective
.................................Fed Inc Tax..Consolidated...Tax Rate
................................Paid(Benefit).........PTI.......Paid(Benefit)
.....................................2010..............2010............2010
........................................(million of $s).....
Big Food and Beverage Corps
MolsonCoors Brewing.........8................809.............1.0%
Coca Cola Enterprises.........8................746.............1.1%
Bunge, Ltd(1)....................33.............3,050.............1.1%
Kraft Foods.......................91.............3,642.............2.5%
Sara Lee............................13................487.............2.7%
HJ Heinz...........................39.............1,374.............2.8%
Coca Cola(2)...................470............9,709.............4.8%
Kellogg.............................97.............1,742.............5.6%
Mead Johnson Nutrition...38................634.............6.0%
ArcherDanielsMidland....251.............3,015.............8.3%
PepsiCo...........................932.............8,232............11.3%
ConAgra Foods...............157.............1,225............12.8%
Total 12 Food&Bev.......2,137...........34,665.............6.2%
Big Chemical Corps
Dow Chemical...............(576)...........2,802..........(20.6)%
DuPont.........................(109)............3,711............(2.9)%
Mosaic...........................135.............3,271..............4.1%
PPG Industries................62..............1,295..............4.8%
Praxair..........................133..............1,964..............6.8%
Air Products&Chems.....101..............1,394..............7.2%
Lubrizol.........................97..............1,004..............9.7%
Total 7 Chemicals........(157)............15,441............(1.0)%
Big Household/Personal Product Corps
Fortune Brands.............(61)................588............(10.4)%
Avon Products..............(21)................945.............(2.2)%
Procter & Gamble.......1,809............15,158.............11.9%
Estee Lauder.................127..............1,026.............12.4%
Colgate Palmolive(3).....427..............3,430.............12.4%
Kimberly Clark..............368..............2,550.............14.4%
Total 6 HH and PPs.....2,649............23,697.............11.2%
Big Mining Corps
Southern Copper(1)........40...............2,431..............1.6%
Freeport-McMoran......207...............8,512..............2.4%
Newmont Mining(1)......214...............3,997..............5.4%
Cliff's Natural Res..........108...............1,298..............8.3%
Peabody Energy............114...............1,113.............10.2%
Total 5 Big Mining.........683.............17,351..............3.9%
Big Industrial Machinery Corps
Eaton.............................(2)..............1,036.............(0.2)%
Ingersoll-Rand(1)...........29..............1,007...............2.9%
Dover.............................34.................925...............3.7%
Parker Hannifin.............121..............1,414...............8.6%
Total 4 Industr Mach....182..............4,382...............4.2%
Big Leisure and Entertainment Corps
Carnival..........................0...............1,979...............0.0%
Royal Caribbean..............0.................548...............0.0%
Mattel............................14.................847...............1.7%
Wyndham WW................55................563................9.8%
Total 4 Leisure&Entert...69..............3,937...............1.8%
Big Electric Equipment Corps
Whirlpool...................(101)...............586...........(17.2)%
Rockwell Automation....10................544...............1.8%
Cooper Industries.........29................530...............5.5%
Amphenol(1)................77................664..............11.6%
Total 4 Electric Equip....15.............2,324...............0.6%
Big US Defense Contractor Corps
Boeing..........................13.............4,507...............0.3%
Goodrich......................67................805...............8.3%
Raytheon....................205.............2,432...............8.4%
Total 3 US Defense
.....Contractors............285............7,744...............3.7%
Big Retail Corps
Supervalu(4)..................2.................347...............0.6%
Yum Brands................155..............1,594...............9.7%
Staples........................142..............1,357.............10.5%
Total 3 Retail..............299..............3,298...............9.1%
Big Farm/Construction Machinery Corps
Cummins(1)..................11...............1,617...............0.7%
Caterpillar..................247..............3,750...............6.6%
Total 2 Big Farm
.....and Construction...258..............5,367...............4.8%
Big Wholesaler Corps
CHS(1)............................9.................584...............1.5%
Avnet...........................64.................871...............7.3%
Total 2 Wholesalers......73..............1,455...............5.0%
Big Engineering/Construction Corps
Fluor............................22................560...............3.9%
KBR..............................56................586...............9.6%
Total 2 Eng & Constr.....78..............1,146...............6.8%
Big Packaging/Container Corps
Crown Holdings..............0................614...............0.0%
Ball Corp.......................49................606...............8.1%
Total 2 Packaging
.....and Containers........49..............1,220..............4.0%
Big Misc Equipment Corps
Joy Global...................33.................679...............4.9%
Flowserve....................13.................530...............2.5%
Total 2 Misc Equip.......46..............1,209...............3.8%
Big Transportation Corps
FedEx.........................79..............2,265...............3.5%
United Parcel Serv....776..............5,523..............14.1%
Total 2 Big
.....Transportation.....855.............7,788..............11.0%
Big Tobacco Corp
Phillip Morris Intl......157............10,324...............1.5%
Big Cogeneration Power Producer
AES(4).........................(8).............2,265.............(0.4)%
Big Advertising Agency Corp
Omnicom Group........107..............1,350...............7.9%
Big Forest/Paper Product Corp
Intl Paper................(249)................822............(30.3)%
Big Metal Corp
Nucor.......................(66)................267.............(24.7)%
Big Motor Vehicles/Parts Corp
Paccar........................25.................660.................3.8%
Big Apparel/Footwear Corp
Nike..........................289..............2,844................10.2%
Grand Total (67 Corps
….in 22 Sectors)..7,776..........149,556.................5.2%
(1) Above Current US Federal Income Tax also includes US State Income Tax.
(2) Coca Cola PTI excludes various large unusual transactions.
(3) Colgate Palmolive US Federal Income Tax also includes US State Income Tax and also all US Deferred Income Tax Expense.
(4) PTI excludes large Intangible Asset Impairments.
My proposal here is that all US Big Corps in these Other Sectors 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 Other Sector 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 $155.9 bil. When added to the similar earlier mentioned $905.3 bil related to the 6 Sectors I had already studied, that brings the total positive CBO scoring to the US Government to $1,061.2 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 $282.7 bil over the 10 years from 2012 to 2021 related to these 67 US Big Corps in these 22 Other Sectors. When added to the similar earlier mentioned $1,395.5 bil related to the 6 Sectors I had already studied, that brings the total positive CBO scoring to $1,682.2 bil…..yeah, almost $1.7 trillion.
Perhaps the best way to go on a minimum tax on US Big Other Sector 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.
Sunday, September 4, 2011
Big Corp Tax Loophole Closer #49: Minimum Tax on Big Conglomerate Worldwide Profits
For the 10 US Big Conglomerate Corps as I define them, 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 6.4%. And for the most recent year 2010, this effective tax rate was an even lower 3.1%.
Here are these 10 Big US Conglomerate Corps applicable amounts for 2010:
.................................Current US...........................Effective
.................................Fed Inc Tax..Consolidated...Tax Rate
................................Paid(Benefit).........PTI.......Paid(Benefit)
.....................................2010..............2010............2010
........................................(million of $s).....
Big US Conglomerates
GE...............................(3,253)..........14,208..........(22.9)%
Honeywell......................(471)............2,843..........(16.6)%
United Technologies........122.............6,538.............1.9%
Tyco Intl...........................45.............1,270.............3.5%
Loews..............................154.............2,902.............5.3%
Johnson Controls.............112.............1,763.............6.4%
3M...................................837............5,755............14.5%
Danaher...........................388.............2,342............16.6%
ITT...................................152................818............18.6%
Berkshire Hathaway(1)..3,668...........19,051............19.3%
Total of all 10................1,754..........57,490.............3.1%
(1) Berkshire Hathaway above US Federal Income Tax includes Current US Federal, US State and Foreign Income Tax Expense amounts.
My proposal here is that all US Big Conglomerate 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 Conglomerate Corps, and use a 10% average annual profit growth and 10% annual Federal Income Tax Paid growth from 2011 to 2021, I get additional US Federal Income Tax Receipts over the 10 years from 2012 to 2021 of $131.3 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 $163.0 bil over the 10 years from 2012 to 2021.
Perhaps the best way to go on a minimum tax on US Big Conglomerate 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.
I think it would be wise to take a closer historical look at GE Consolidated to see if we can get a better clue on just why the country is in such horrible economic straits presently.
From their audited financial statements and related income tax footnotes filed with the SEC, here's GE Consolidated Pretax Income and US Federal Income Taxes Paid or (Tax Benefits Received) during the 8 Clinton Presidential Years from 1993 to 2000, and then during the 10 subsequent years from 2001 to 2010, with the bulk of these later years being the 8 Bush/Cheney Presidential Years from 2001 to 2008:
..............................................................US Federal........Effective
....................................Consolidated....Income Tax.....US Fed Inc
...................................Pretax Income..Paid(Benefit).Tax Rate Paid
..........................................(in millions of dollars)
Clinton Presidential Years
1993.................................6,136................1,126
1994.................................8,661................1,299
1995.................................9,737...............1,409
1996...............................10,806..................971
1997...............................11,179................1,176
1998...............................13,477................1,459
1999...............................15,577................1,632
2000..............................18,446................3,005...........16.3%
Total Clinton 8 Yrs......94,019..............12,077...........12.8%
Subsequent 10 Years
2001.............................19,701.................2,514
2002.............................18,891....................137
2003.............................19,904.................1,555
2004.............................20,106.................1,839
2005.............................21,178.................2,755...........13.0%
2006.............................23,330....................514............2.2%
2007.............................26,598......................87............0.3%
2008.............................19,770..................(651)..........(3.3)%
2009...............................9,995..................(833)..........(8.3)%
2010.............................14,208................(3,253)........(22.9)%
Total 10 Yrs 2001-10..193,681.................4,664............2.4%
Yeah, that's right, during the 8 years of the Clinton Presidency, GE Consolidated generated Total Consolidated Pretax Income of $94.0 bil, and paid what seemed like a pretty fair amount of Total US Federal Income Tax of $12.1 bil, which resulted in an effective tax rate paid of 12.8%.
And what has happened in the 10 years since then?.....8 of which were the Bush/Cheney Presidential years, and also most of which had the US House Ways and Means Committee and the US Senate Finance Committee both in Republican control.
Well, in these 10 years from 2000 to 2010, GE Consolidated generated Total Consolidated Pretax Income of $193.7 bil, and paid Total US Federal Income Tax of only $4.7 bil, or an incredibly low effective tax rate paid of 2.4%.
Do you really think that GE wants a Democratic President in 2012? And do you really think that GE wants a US House Ways and Means and US Senate Finance Committee under Democratic control in 2012? GE's CEO works for his stockholders, not for the Obama Administration.
I have a hunch that GE, just like nearly all of the US Big Corps that have paid so very little in US Federal Income Taxes under Bush/Cheney and under Republican House and Republican Senate control, will do everything in their power to prevent the Obama Administration, and the Democrats in both the US Senate and in the US House, from being successful in their clearly laser-like focus on substantial US job creation in both the short run and in the long run.
And the CEO of GE is now in charge of US Jobs? What motivation does he have to be successful here in creating US jobs? I suggest he has absolutely none.
When you think about it, with the incredible tax benefits that GE Consolidated has received over the past 10 years, while so many of the country's citizens and its small businesses have been suffering so severely, US citizens have to be outraged, particularly at the US House Ways and Means Committee, and to a somewhat lesser extent, at the US Senate Finance Committee, for permitting this to happen. With the US economy in such shambles for everyone other than US Big Corps, I think it is in the country's best interests that anyone presently on the US House Ways and Means Committee, who continues to shirk his critical responsibility, should be moved to a less critical US House Committee, and replaced by someone who wants to move both the US economy and US job creation forward.
Here are these 10 Big US Conglomerate Corps applicable amounts for 2010:
.................................Current US...........................Effective
.................................Fed Inc Tax..Consolidated...Tax Rate
................................Paid(Benefit).........PTI.......Paid(Benefit)
.....................................2010..............2010............2010
........................................(million of $s).....
Big US Conglomerates
GE...............................(3,253)..........14,208..........(22.9)%
Honeywell......................(471)............2,843..........(16.6)%
United Technologies........122.............6,538.............1.9%
Tyco Intl...........................45.............1,270.............3.5%
Loews..............................154.............2,902.............5.3%
Johnson Controls.............112.............1,763.............6.4%
3M...................................837............5,755............14.5%
Danaher...........................388.............2,342............16.6%
ITT...................................152................818............18.6%
Berkshire Hathaway(1)..3,668...........19,051............19.3%
Total of all 10................1,754..........57,490.............3.1%
(1) Berkshire Hathaway above US Federal Income Tax includes Current US Federal, US State and Foreign Income Tax Expense amounts.
My proposal here is that all US Big Conglomerate 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 Conglomerate Corps, and use a 10% average annual profit growth and 10% annual Federal Income Tax Paid growth from 2011 to 2021, I get additional US Federal Income Tax Receipts over the 10 years from 2012 to 2021 of $131.3 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 $163.0 bil over the 10 years from 2012 to 2021.
Perhaps the best way to go on a minimum tax on US Big Conglomerate 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.
I think it would be wise to take a closer historical look at GE Consolidated to see if we can get a better clue on just why the country is in such horrible economic straits presently.
From their audited financial statements and related income tax footnotes filed with the SEC, here's GE Consolidated Pretax Income and US Federal Income Taxes Paid or (Tax Benefits Received) during the 8 Clinton Presidential Years from 1993 to 2000, and then during the 10 subsequent years from 2001 to 2010, with the bulk of these later years being the 8 Bush/Cheney Presidential Years from 2001 to 2008:
..............................................................US Federal........Effective
....................................Consolidated....Income Tax.....US Fed Inc
...................................Pretax Income..Paid(Benefit).Tax Rate Paid
..........................................(in millions of dollars)
Clinton Presidential Years
1993.................................6,136................1,126
1994.................................8,661................1,299
1995.................................9,737...............1,409
1996...............................10,806..................971
1997...............................11,179................1,176
1998...............................13,477................1,459
1999...............................15,577................1,632
2000..............................18,446................3,005...........16.3%
Total Clinton 8 Yrs......94,019..............12,077...........12.8%
Subsequent 10 Years
2001.............................19,701.................2,514
2002.............................18,891....................137
2003.............................19,904.................1,555
2004.............................20,106.................1,839
2005.............................21,178.................2,755...........13.0%
2006.............................23,330....................514............2.2%
2007.............................26,598......................87............0.3%
2008.............................19,770..................(651)..........(3.3)%
2009...............................9,995..................(833)..........(8.3)%
2010.............................14,208................(3,253)........(22.9)%
Total 10 Yrs 2001-10..193,681.................4,664............2.4%
Yeah, that's right, during the 8 years of the Clinton Presidency, GE Consolidated generated Total Consolidated Pretax Income of $94.0 bil, and paid what seemed like a pretty fair amount of Total US Federal Income Tax of $12.1 bil, which resulted in an effective tax rate paid of 12.8%.
And what has happened in the 10 years since then?.....8 of which were the Bush/Cheney Presidential years, and also most of which had the US House Ways and Means Committee and the US Senate Finance Committee both in Republican control.
Well, in these 10 years from 2000 to 2010, GE Consolidated generated Total Consolidated Pretax Income of $193.7 bil, and paid Total US Federal Income Tax of only $4.7 bil, or an incredibly low effective tax rate paid of 2.4%.
Do you really think that GE wants a Democratic President in 2012? And do you really think that GE wants a US House Ways and Means and US Senate Finance Committee under Democratic control in 2012? GE's CEO works for his stockholders, not for the Obama Administration.
I have a hunch that GE, just like nearly all of the US Big Corps that have paid so very little in US Federal Income Taxes under Bush/Cheney and under Republican House and Republican Senate control, will do everything in their power to prevent the Obama Administration, and the Democrats in both the US Senate and in the US House, from being successful in their clearly laser-like focus on substantial US job creation in both the short run and in the long run.
And the CEO of GE is now in charge of US Jobs? What motivation does he have to be successful here in creating US jobs? I suggest he has absolutely none.
When you think about it, with the incredible tax benefits that GE Consolidated has received over the past 10 years, while so many of the country's citizens and its small businesses have been suffering so severely, US citizens have to be outraged, particularly at the US House Ways and Means Committee, and to a somewhat lesser extent, at the US Senate Finance Committee, for permitting this to happen. With the US economy in such shambles for everyone other than US Big Corps, I think it is in the country's best interests that anyone presently on the US House Ways and Means Committee, who continues to shirk his critical responsibility, should be moved to a less critical US House Committee, and replaced by someone who wants to move both the US economy and US job creation forward.
Big Corp Tax Loophole Closer #48: Minimum Tax on Big Telecom Profits
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.
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.
Saturday, September 3, 2011
Big Corp Tax Loophole Closer #47: Minimum Tax on Big Financial Worldwide Profit
For the 51 US Big Financial Corps with Total Pretax Income above $1.5 bil each for the most recent three years, I was really unpleasantly surprised to discover that the total effective US Federal Income Tax Rate Paid for the most recent year 2010 was a meager 6.3%.
Even more surprising was how many of these Big Financial Corps had negative Effective US Federal Income Tax Rates Paid in 2010.....an amazingly high 12 of them. Here are all 23 of them 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).....
Big Financial Corps
GE Capital Services....(3,991)..............2,172........(183.7)%
State Street..................(885)..............2,086.........(42.4)%
Reinsusrance Group.....(218).................864.........(25.2)%
Lincoln National..........(244)...............1,234.........(19.8)%
Bank NY Mellon...........(670)..............3,694.........(18.1)%
Prudential Financial.....(722)..............4,422.........(16.3)%
Ameriprise Financial....(224)..............1,594.........(14.1)%
Marsh & McLennan........(90).................769.........(11.7)%
Bank of America(1).......(666)............11,077..........(6.0)%
PNC Financial..............(207)..............4,061..........(5.1)%
Capital One Financial....(152)..............4,330..........(3.5)%
Toyota Motor Credit......(26)..............3,003..........(0.9)%
AON.................................16...............1,059...........1.5%
NYSE Euronext................18..................686...........2.6%
Morgan Stanley..............213..............6,202...........3.4%
MetLife...........................141..............3,958...........3.6%
Invesco Ltd......................45.................834...........5.4%
Interactive Brokers..........21..................341...........6.2%
Wells Fargo.................1,425.............19,001...........7.5%
Principal Financial...........74..................841...........8.8%
American Express..........532...............5,964...........8.9%
Western Union...............104................1,145...........9.1%
AFLAC...........................349................3,585...........9.7%
Total of all 23............(5,157).............82,922..........(6.2)%
(1) Bank of America 2010 PTI excludes huge Goodwill Impairment Charge.
My proposal here is that all US Big Financial 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 Financial 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 an incredibly high $259.4 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 $345.0 bil over the 10 years from 2012 to 2021.
Perhaps the best way to go on a minimum tax on US Big Financial 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.
From their audited financial statements and related income tax footnotes filed with the SEC, here's GE Capital Services Consolidated Pretax Income and US Federal Income Taxes Paid or (Benefits) during the 8 Bush/Cheney Presidential Years from 2001 to 2008:
..........................................................US Federal
...............................Consolidated......Income Tax
..............................Pretax Income....Paid(Benefit)
.....................................(in millions of dollars)
2008............................5,618...............(2,689)
2007..........................13,764.................(579)
2006..........................11,653..................(239)
2005..........................10,150.................1,148
2004............................9,701...................893
2003............................9,212....................(56)
2002............................4,547...............(1,881)
2001............................6,966..................(125)
Total for all 8 Years.....71,611..............(3,528)
Yeah, that's right, during the 8 years of the Bush/Cheney Presidency, GE Capital Services generated Total Consolidated Pretax Income of $71.6 bil, and didn't pay a dime in total of US Federal Income Tax, and instead got Total US Federal Income Tax Benefits of $3.5 bil!
And the CEO of GE is now in charge of US Jobs? And I'm sure he's licking his chops over potential foreign earnings repatriation.
When you think about it, with the incredible tax benefits that GE Capital Services has received over so many years, while so many of the country's citizens and its small businesses have been suffering so severely, US citizens have to be outraged, particularly at the US House Ways and Means Committee, and to a somewhat lesser extent, at the US Senate Finance Committee, for permitting this to happen. With the US economy in such shambles for everyone other than US Big Corps, I think it is in the country's best interests that anyone presently on the US House Ways and Means Committee, who continues to shirk his critical responsibility, should be moved to a less critical US House Committee, and replaced by someone who wants to move both the US economy and US job creation forward.
Even more surprising was how many of these Big Financial Corps had negative Effective US Federal Income Tax Rates Paid in 2010.....an amazingly high 12 of them. Here are all 23 of them 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).....
Big Financial Corps
GE Capital Services....(3,991)..............2,172........(183.7)%
State Street..................(885)..............2,086.........(42.4)%
Reinsusrance Group.....(218).................864.........(25.2)%
Lincoln National..........(244)...............1,234.........(19.8)%
Bank NY Mellon...........(670)..............3,694.........(18.1)%
Prudential Financial.....(722)..............4,422.........(16.3)%
Ameriprise Financial....(224)..............1,594.........(14.1)%
Marsh & McLennan........(90).................769.........(11.7)%
Bank of America(1).......(666)............11,077..........(6.0)%
PNC Financial..............(207)..............4,061..........(5.1)%
Capital One Financial....(152)..............4,330..........(3.5)%
Toyota Motor Credit......(26)..............3,003..........(0.9)%
AON.................................16...............1,059...........1.5%
NYSE Euronext................18..................686...........2.6%
Morgan Stanley..............213..............6,202...........3.4%
MetLife...........................141..............3,958...........3.6%
Invesco Ltd......................45.................834...........5.4%
Interactive Brokers..........21..................341...........6.2%
Wells Fargo.................1,425.............19,001...........7.5%
Principal Financial...........74..................841...........8.8%
American Express..........532...............5,964...........8.9%
Western Union...............104................1,145...........9.1%
AFLAC...........................349................3,585...........9.7%
Total of all 23............(5,157).............82,922..........(6.2)%
(1) Bank of America 2010 PTI excludes huge Goodwill Impairment Charge.
My proposal here is that all US Big Financial 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 Financial 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 an incredibly high $259.4 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 $345.0 bil over the 10 years from 2012 to 2021.
Perhaps the best way to go on a minimum tax on US Big Financial 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.
From their audited financial statements and related income tax footnotes filed with the SEC, here's GE Capital Services Consolidated Pretax Income and US Federal Income Taxes Paid or (Benefits) during the 8 Bush/Cheney Presidential Years from 2001 to 2008:
..........................................................US Federal
...............................Consolidated......Income Tax
..............................Pretax Income....Paid(Benefit)
.....................................(in millions of dollars)
2008............................5,618...............(2,689)
2007..........................13,764.................(579)
2006..........................11,653..................(239)
2005..........................10,150.................1,148
2004............................9,701...................893
2003............................9,212....................(56)
2002............................4,547...............(1,881)
2001............................6,966..................(125)
Total for all 8 Years.....71,611..............(3,528)
Yeah, that's right, during the 8 years of the Bush/Cheney Presidency, GE Capital Services generated Total Consolidated Pretax Income of $71.6 bil, and didn't pay a dime in total of US Federal Income Tax, and instead got Total US Federal Income Tax Benefits of $3.5 bil!
And the CEO of GE is now in charge of US Jobs? And I'm sure he's licking his chops over potential foreign earnings repatriation.
When you think about it, with the incredible tax benefits that GE Capital Services has received over so many years, while so many of the country's citizens and its small businesses have been suffering so severely, US citizens have to be outraged, particularly at the US House Ways and Means Committee, and to a somewhat lesser extent, at the US Senate Finance Committee, for permitting this to happen. With the US economy in such shambles for everyone other than US Big Corps, I think it is in the country's best interests that anyone presently on the US House Ways and Means Committee, who continues to shirk his critical responsibility, should be moved to a less critical US House Committee, and replaced by someone who wants to move both the US economy and US job creation forward.
Big Corp Tax Loophole Closer #46: Minimum Tax on Big High Tech Worldwide Profit
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.
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.
Friday, September 2, 2011
Big Corp Tax Loophole Closer #45: Minimum Tax on Big Pharma Worldwide Profit
For the 40 Big Health Care companies 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 16.4%.
But you have to look at the individual companies to see what is actually going on here.
Of these 40 Big Health Care companies, the total effective US Federal Income Tax Rate Paid by just the 9 Big Pharma Corps and 3 of the Big Medical Corps was a meager 7.1%. And this 7.1% effective tax rate is overstated because some of these large Corps combined their US Federal Income Tax Paid and State Income Tax Paid together, and one even also combined its Possession Income Tax Paid with the other two US income taxes.
And for the most recent year, the effective US Federal Income Tax Rate Paid was an even lower 5.1%, and that was so even though Abbott Labs reported an unusually large US Income Tax Paid in the most recent year in comparison with its earlier two years.
I bet company employees all over the US would love to go to their Company Human Resources Departments and ask if they can fill out the forms necessary so that they would be able to be income taxed like a US Big Pharma Corp.
Here are these individual US Big Pharma and Big Medical Corps' Current Federal Income Tax Paid or Payable in the most recent three years, their Consolidated Pretax Income(PTI), and their related effective US Federal Income Tax Rate Paid.
.........................................Most Recent Three Years.............
....................................Current US........................Effective
......................................Fed Inc....Consolidated...Tax Rate
.....................................Tax Paid...........PTI.............Paid
............................................(million of $s).....
Big Pharma and Big Medical
JNJ(1)............................6,807...........49,631..........13.7%
Merck(2).........................1,398..........30,637...........4.6%
Pfizer(3)........................(2,067).........19,116.........-10.8%
Eli Lilly(4)..........................214..........15,410............1.4%
Bristol Myers Squibb(5)..1,489..........16,449............9.1%
Abbott Labs(6)...............1,774..........18,763...........9.5%
Amgen............................1,827..........15,536..........11.8%
Medtronic(7)..................1,170..........10,132..........11.5%
Baxter................................140............7,086...........2.0%
Forest Labs........................539............3,260..........16.5%
Boston Scientific(8)...........(146)...........2,050..........-7.1%
Wyeth(9)...........................707............6,338..........11.2%
Schering-Plough(10)............23............2,049...........1.1%
Total of all 12.................13,875........196,457..........7.1%
(1) JNJ above US Federal Income Tax Paid also includes US State Income Tax Paid.
(2) Merck PTI excludes Amortization of Purchase Price Adjustments, In Process R&D Charges, and huge Gain of Merck/Schering-Plough Partnership Transaction.
(3) Pfizer's above numbers exclude 2009 results, since there was a huge foreign earnings repatriation transaction directly related to Pfizer's acquisition of Wyeth, where the salient related amounts weren't disclosed.
(4) Eli Lilly PTI excludes large In Process R&D Charge.
(5) Bristol Myers Squibb above US Federal Income Tax Paid also includes US State Income Tax Paid.
(6) Abbott Labs above US Federal Income Tax Paid also includes US State Income Tax Paid, as well as Possessions Income Tax Paid.
(7) Medtronic above US Federal Income Tax Paid also includes US State Income Tax Paid.
(8) Boston Scientific PTI excludes Goodwill Impairment Charges and large Litigation Charge.
(9) Wyeth above numbers are just for 2008 since it was subsequently acquired by Pfizer.
(10) Schering-Plough above numbers are just for 2008 since it was subsequently acquired by Merck.
My proposal here is that all US Big Health Care 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 Pharma and Big Medical 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 $95.2 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 $142.1 bil over the 10 years from 2012 to 2021.
Perhaps the best way to go on a minimum tax on US Big Health Care 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.
But you have to look at the individual companies to see what is actually going on here.
Of these 40 Big Health Care companies, the total effective US Federal Income Tax Rate Paid by just the 9 Big Pharma Corps and 3 of the Big Medical Corps was a meager 7.1%. And this 7.1% effective tax rate is overstated because some of these large Corps combined their US Federal Income Tax Paid and State Income Tax Paid together, and one even also combined its Possession Income Tax Paid with the other two US income taxes.
And for the most recent year, the effective US Federal Income Tax Rate Paid was an even lower 5.1%, and that was so even though Abbott Labs reported an unusually large US Income Tax Paid in the most recent year in comparison with its earlier two years.
I bet company employees all over the US would love to go to their Company Human Resources Departments and ask if they can fill out the forms necessary so that they would be able to be income taxed like a US Big Pharma Corp.
Here are these individual US Big Pharma and Big Medical Corps' Current Federal Income Tax Paid or Payable in the most recent three years, their Consolidated Pretax Income(PTI), and their related effective US Federal Income Tax Rate Paid.
.........................................Most Recent Three Years.............
....................................Current US........................Effective
......................................Fed Inc....Consolidated...Tax Rate
.....................................Tax Paid...........PTI.............Paid
............................................(million of $s).....
Big Pharma and Big Medical
JNJ(1)............................6,807...........49,631..........13.7%
Merck(2).........................1,398..........30,637...........4.6%
Pfizer(3)........................(2,067).........19,116.........-10.8%
Eli Lilly(4)..........................214..........15,410............1.4%
Bristol Myers Squibb(5)..1,489..........16,449............9.1%
Abbott Labs(6)...............1,774..........18,763...........9.5%
Amgen............................1,827..........15,536..........11.8%
Medtronic(7)..................1,170..........10,132..........11.5%
Baxter................................140............7,086...........2.0%
Forest Labs........................539............3,260..........16.5%
Boston Scientific(8)...........(146)...........2,050..........-7.1%
Wyeth(9)...........................707............6,338..........11.2%
Schering-Plough(10)............23............2,049...........1.1%
Total of all 12.................13,875........196,457..........7.1%
(1) JNJ above US Federal Income Tax Paid also includes US State Income Tax Paid.
(2) Merck PTI excludes Amortization of Purchase Price Adjustments, In Process R&D Charges, and huge Gain of Merck/Schering-Plough Partnership Transaction.
(3) Pfizer's above numbers exclude 2009 results, since there was a huge foreign earnings repatriation transaction directly related to Pfizer's acquisition of Wyeth, where the salient related amounts weren't disclosed.
(4) Eli Lilly PTI excludes large In Process R&D Charge.
(5) Bristol Myers Squibb above US Federal Income Tax Paid also includes US State Income Tax Paid.
(6) Abbott Labs above US Federal Income Tax Paid also includes US State Income Tax Paid, as well as Possessions Income Tax Paid.
(7) Medtronic above US Federal Income Tax Paid also includes US State Income Tax Paid.
(8) Boston Scientific PTI excludes Goodwill Impairment Charges and large Litigation Charge.
(9) Wyeth above numbers are just for 2008 since it was subsequently acquired by Pfizer.
(10) Schering-Plough above numbers are just for 2008 since it was subsequently acquired by Merck.
My proposal here is that all US Big Health Care 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 Pharma and Big Medical 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 $95.2 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 $142.1 bil over the 10 years from 2012 to 2021.
Perhaps the best way to go on a minimum tax on US Big Health Care 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.
Subscribe to:
Posts (Atom)