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Current Events & Hot Topics Current Events & Hot Topics

America’s Top 10 Corporate Tax Avoiders

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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
Replies (21-30):
supermonstermom
by Silver Member on Apr. 26, 2014 at 4:17 PM

As a small business owner this makes me feel sick.

We don't get many tax breaks and there are no tax loop holes for us. 


Sisteract
by Whoopie on Apr. 26, 2014 at 4:21 PM
1 mom liked this



Quoting supermonstermom:

As a small business owner this makes me feel sick.

We don't get many tax breaks and there are no tax loop holes for us. 


You are fodder.

Just like people who make $250,000/yr are labeled "rich"- distractions so that the corps, mega millionaires and billionaires can walk all over the rest of us.

Shiny pennies.


supermonstermom
by Silver Member on Apr. 26, 2014 at 4:28 PM


Quoting Sisteract:

Quoting supermonstermom:

As a small business owner this makes me feel sick.

We don't get many tax breaks and there are no tax loop holes for us. 


You are fodder.

Just like people who make $250,000/yr are labeled "rich"- distractions so that the corps, mega millionaires and billionaires can walk all over the rest of us.

Shiny pennies.

So true, but we are happy fodder.

Its both political parties who screw small businesses.  I think that's whay I am jaded about both parties.

Healthystart30
by Silver Member on Apr. 26, 2014 at 4:29 PM
3 moms liked this
Quoting MelanieJK:

Pretty hilarious that liberals are just discovering this about Immelt!      Conservatives pointed this out about him relentlessly when he was one of Obama's biggest supporters and was getting those green energy deals.      MSNBC became the marketing division of the democratic party when GE owned NBC for a reason.      It's id pro quid.     They get tax breaks and special deals and the politicians get donations etc.



Please! Don't turn this into a liberal vs conservative thing! It takes away from the real issue here, don't you think?
They get away with this because the government is owned by big corporations.
jamamama00
by on Apr. 26, 2014 at 4:31 PM
Fred is a family friend. Great guy. If he invented fucking Fed Ex, why the fuck shouldn't he make that much?!
jobseeker
by Bronze Member on Apr. 26, 2014 at 4:43 PM

 it's called corportate welfare

momto2boys3215
by New Member on Apr. 26, 2014 at 4:54 PM
5 moms liked this

26 measly replies.  If this had been labled food stamps there would be over 300.  SMH at all the sheep.  

idunno1234
by Silver Member on Apr. 26, 2014 at 6:11 PM
1 mom liked this

"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."

This is the issue.  

Quoting jamamama00: Fred is a family friend. Great guy. If he invented fucking Fed Ex, why the fuck shouldn't he make that much?!


angelenia
by Bronze Member on Apr. 26, 2014 at 6:23 PM
1 mom liked this
Bump for exposure
MelanieJK
by Silver Member on Apr. 26, 2014 at 6:26 PM

 If Corporate America owned our government we wouldn't have the highest tax rate in the world.    And yes some/many companies do pay a whole lotta taxes and close to that tax rate.     Perhaps we should include the highest payers to balance out your list before we jump to conclusions about who/what is running our government.    See any liberal vs conservative clues here...    lol

http://www.usatoday.com/story/money/personalfinance/2013/03/17/companies-paying-highest-income-taxes/1991313/

If Corporate America owned out government they wouldn't have saddled themselves with 216 BILLION dollars of NEW regulations last year alone!    

Saying that I'm turning this into a conservative vs liberal issue is absurd.   That's like saying don't turn Obamacare into a conservative vs liberal issue!       Both sides agree that it has some serious problems but do you really think ignoring the fact that they're at polar opposite sides on what the problem is and how it should be solved isn't relevant?     lol

Conservatives believe the way to get Corporate America out of government is to get government out of Corporate America.     If government is regulating every aspect of their business why isn't government their business?  

Liberals believe the way to get Corporate America out of government is to ban them from participation.     i.e. taxation and regulation without participation.  

Neither side wants to end corporate welfare if you look at this as more than a catchy soundbite.    Are liberals against green energy subsidies?     They weren't just a few days ago!   lol      But they're against corporate welfare by golly.     Are conservatives against tax breaks for oil and gas exploration?    lol

 

Quoting Healthystart30:
Quoting MelanieJK:

Pretty hilarious that liberals are just discovering this about Immelt!      Conservatives pointed this out about him relentlessly when he was one of Obama's biggest supporters and was getting those green energy deals.      MSNBC became the marketing division of the democratic party when GE owned NBC for a reason.      It's id pro quid.     They get tax breaks and special deals and the politicians get donations etc.

Please! Don't turn this into a liberal vs conservative thing! It takes away from the real issue here, don't you think? They get away with this because the government is owned by big corporations.

 

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