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America’s Top 10 Corporate Tax Avoiders

Posted by on Apr. 24, 2014 at 8:08 AM
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1 mom liked this


t1c

1. General Electric

From 2008 to 2013, while GE made over $33.9 billion in United States profits, it received a total tax refund of more than $2.9 billion from the Internal Revenue Service.

G.E.’s effective U.S. corporate income tax rate over this six year period was -9 percent.

In 2012, GE stashed $108 billion in offshore tax havens to avoid paying income taxes. If this practice were outlawed, GE would have paid $37.8 billion in federal income taxes that year.

During the financial crisis, the Federal Reserve provided GE with $16 billion in financial assistance, at a time when its CEO Jeffrey Immelt was a director of the New York Federal Reserve.

GE has been a leader in outsourcing decent paying jobs to China, Mexico and other low-wage countries.

Mr. Immelt has a retirement account at General Electric worth an estimated $59 million and made $19 million in total compensation last year.

He is a member of the Business Roundtable, a group that wants to raise the eligibility age for Medicare and Social Security to 70, cut Social Security and veterans’ benefits, increase taxes on working families, and cut corporate taxes even further.

On December 6, 2002, Jeffrey Immelt said at an investors’ meeting, “When I am talking to GE managers, I talk China, China, China, China, China. You need to be there. You need to change the way people talk about it and how they get there. I am a nut on China. Outsourcing from China is going to grow to $5 billion. We are building a tech center in China. Every discussion today has to center on China. The cost basis is extremely attractive. You can take an 18 cubic foot refrigerator, make it in China, land it in the United States, and land it for less than we can make an 18 cubic foot refrigerator today, ourselves.” 

2. Boeing

From 2008 to 2013, while Boeing made over $26.4 billion in U.S. profits, it received a total tax refund of $401 million from the IRS. Boeing’s effective U.S. corporate income tax rate over this six-year period was -2 percent.

Boeing is one of the top recipients of corporate welfare in the United States and has outsourced tens of thousands of decent paying jobs to China and other low-wage countries.

Boeing even has its own taxpayer-funded bank known as the Export-Import Bank of the United States. Boeing has received so much corporate welfare from this bank that it has been dubbed “the Bank of Boeing.”

Boeing CEO W. James McNerney, Jr. made $23.3 million in total compensation last year. Mr. McNerney, as a memberof the Business Roundtable, wants to raise the eligibility age for Medicare and Social Security to 70 and make significant cuts to Social Security.

3. Verizon

From 2008 to 2013, while Verizon made over $42.4 billion in U.S. profits, it received a total tax refund of $732 million from the IRS.

Verizon’s effective U.S. corporate income tax rate over this six-year period was -2 percent.

In 2012, Verizon stashed $1.8 billion in offshore tax havens to avoid paying U.S. income taxes. Verizon would owe an estimated $630 million in federal income taxes if its use of offshore tax avoidance was eliminated.

In 2013, Lowell McAdam, the CEO of Verizon made $15.8 million in total compensation. He wants to raise the eligibility age for Medicare and Social Security to 70, and make significant cuts to Social Security as a member of the Business Roundtable.

4. Bank of America

Bank of America received a $1.9 billion tax refund from the IRS in 2010, even though it made $4.4 billion in profits and received a bailout from the Federal Reserve and the Treasury Department of more than $1.3 trillion.

In 2012, Bank of America operated more than 300 subsidiaries incorporated in offshore tax havens like the Cayman Islands, which has no corporate taxes.

In 2012, Bank of America stashed $17.2 billion in offshore tax havens to avoid paying U.S. income taxes. Bank of America would owe an estimated $4.3 billion in federal income taxes if its use of offshore tax avoidance strategies were eliminated.

Last year, Bank of America CEO Brian Moynihan made $13.1 million in total compensation, but he wants to raise the eligibility age for Medicare and Social Security to 70, and make significant cuts to Social Security as a member of the Business Roundtable.

5. Citigroup

Citigroup made more than $4 billion in profits in 2010, but paid no federal income taxes. Citigroup received a $2.5 trillion bailout from the Federal Reserve and U.S. Treasury during the financial crisis.

Citigroup has established 427 subsidiaries incorporated in offshore tax havens.

In 2012, it stashed $42.6 billion in offshore tax havens to avoid paying U.S. income taxes. Citigroup would owe an estimated $11.5 billion in federal income taxes if its use of offshore tax avoidance strategies were eliminated.

Michael Corbat, the CEO of Citigroup, made more than $17.6 million in total compensation last year.

6. Pfizer

Pfizer, one of the largest prescription drug companies in America, not only paid no federal income taxes from 2010 to 2012, it received $2.2 billion in tax refunds from the IRS at the same time it made $43 billion in profits worldwide.

In 2012, Pfizer stashed $73 billion in profits offshore and has used aggressive offshore tax strategies to avoid paying U.S. income taxes.

Ian Read, the CEO of Pfizer, made $17.7 million in total compensation last year.

Hank McKinnell, Jr., who was Pfizer’s CEO from 2001 to 2006, received a golden parachute from Pfizer worth anestimated $188 million.

7. FedEx

In 2011, Federal Express received a $135 million tax refund from the IRS even though it made more than $2.7 billion in U.S. profits that year.

FedEx receives more than $1 billion a year from the U.S. Postal Service to provide air service for all express mail and priority mail shipments.

Frederick Smith, the CEO of FedEx, made more than $12.6 million in total compensation last year.

8. Honeywell

From 2009 to 2010, not only did Honeywell pay no federal income taxes, it received a $510 million tax refund from the IRS even though it made a combined profit in the U.S. of almost $3 billion.

In 2012, Honeywell stashed $11.6 billion in offshore tax havens to avoid paying U.S. income taxes. Honeywell would owe an estimated $4.06 billion in federal income taxes if its use of offshore tax avoidance were eliminated.

David Cote, the CEO of Honeywell, made more than $25.4 million in total compensation last year.

Mr. Cote wants to raise the eligibility age for Medicare and Social Security to 70 and make significant cuts to Social Security as a member of the Business Roundtable.

9. Merck

In 2009, not only did Merck pay no federal income taxes, it received a $55 million tax refund from the IRS, even though it earned more than $5.7 billion in U.S. profits.

In 2012, Merck stashed $53.4 billion in offshore tax haven countries to avoid paying income taxes. If this practice was outlawed, it would have paid $18.69 billion in federal income taxes.

Fred Hassan, the CEO of Merck from 2003 to 2009, received a golden parachute worth an estimated $189 million.

Merck’s current CEO, Kenneth Frazier, has a retirement account worth an estimated $14.4 million.  He wants to raise the eligibility age for Medicare and Social Security to 70 and make significant cuts to Social Security as a member of the Business Roundtable.

10. Corning

From 2008 to 2012, not only did Corning pay no federal income taxes, it received a $10 million tax refund from the IRS, even though it earned more than $3.4 billion in U.S. profits during those years.

Corning has stashed $11.9 billion in offshore tax havens to avoid paying U.S. income taxes. Corning would owe an estimated $4.165 billion in federal income taxes if its use of offshore tax avoidance were eliminated.

Wendell Weeks, the CEO of Corning, has a retirement account worth an estimated $22.8 million.   Mr. Weeks wants to raise the eligibility age for Medicare and Social Security to 70 and make significant cuts to Social Security as a member of the Business Roundtable.



http://www.sanders.senate.gov/top-10-corporate-tax-avoiders

by on Apr. 24, 2014 at 8:08 AM
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Replies (1-10):
mehamil1
by Platinum Member on Apr. 24, 2014 at 8:23 AM
8 moms liked this

So they don't pay taxes even though they could afford it without it hurting the "bottom line". Instead of taking the money saved by not paying taxes and reinvesting it in the company and their workers, they are stashing the money elsewhere. Like horders. And it's all perfectly legal. Got it.

survivorinohio
by René on Apr. 24, 2014 at 8:24 AM
5 moms liked this

This is very upsetting to me.  Its relatively common knowledge yet its still happening.  Its just wrong.

dawnie1
by #1 Raider fan on Apr. 24, 2014 at 9:15 AM

I don't understand this crap at all. Why doesn't  somebody do something?

GLWerth
by Gina on Apr. 24, 2014 at 9:21 AM
8 moms liked this

This is why I laugh when people demand a lower corporate tax rate.

While the official rate may be on the the high side, the actual amount these corporations pay is extremely low. Then, there are the many subsidies which push  their tax burdens to the negative.

With no loopholes, no avoidance tactics, a lower rate would be fine, but frankly, corporations use more of the commons than any one individual and should pay their f-ing taxes.

Sisteract
by Whoopie on Apr. 24, 2014 at 9:54 AM
10 moms liked this

This is what happens when the fox guards the hen house.


But let's all complain ad nauseum about the lazy mofos that will not work and suck at the government teat.

*Shiny penny* The American public is easily distracted.

Euphoric
by Bazinga! on Apr. 24, 2014 at 10:11 AM

 Not surprised

Cutenessmom
by Bronze Member on Apr. 25, 2014 at 9:38 AM

Notice how many   hits this got! Nobody really cares Why they away with it.

Sisteract
by Whoopie on Apr. 25, 2014 at 10:02 AM
1 mom liked this

Yep. The only corporate tax rate that counts and worthy of discussion is the one actually paid.

Quoting GLWerth:

This is why I laugh when people demand a lower corporate tax rate.

While the official rate may be on the the high side, the actual amount these corporations pay is extremely low. Then, there are the many subsidies which push  their tax burdens to the negative.

With no loopholes, no avoidance tactics, a lower rate would be fine, but frankly, corporations use more of the commons than any one individual and should pay their f-ing taxes.


stacymomof2
by Ruby Member on Apr. 25, 2014 at 10:20 AM
1 mom liked this
Yep. They wrote tge laws no wonder they are in their favor. This is really unjust but people either feel as though nothing can be done or they somehow change it in their head to mean "freedom" and instead worry about people getting foid stamps and buying food that they disagree with.

Quoting Sisteract:

This is what happens when the fox guards the hen house.

But let's all complain ad nauseum about the lazy mofos that will not work and suck at the government teat.

*Shiny penny* The American public is easily distracted.

meriana
by Platinum Member on Apr. 25, 2014 at 12:27 PM
4 moms liked this
Every time the Boeing machinists contract is due for negotiation, Boeing tries to lower worker wages and benefits due, according to them, the high cost of doing business. Do they ever consider lowering the pay for their CEO and other execs receive or even maybe doing away with the million dollar year-end bonuses they get? Of course not. Yet, when the machinists strike in order to keep their wage and benefits, they're the bad guys and the Union is horrible for doing whatever they can to protect the wages/benefits of the workers.
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