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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 (51-56):
idunno1234
by Silver Member on Apr. 27, 2014 at 6:19 PM

FEDEX: FedEx spent $8.7 million in campaign contributions and $71 million in lobbying expenditures from 2001 to 2010. It paid a.0005 percent effective tax rate recently, actually spending 42 times as much on lobbying Congress as it did paying taxes. To do this it utilizes 21 tax havens.

http://thinkprogress.org/economy/2011/04/13/158264/tax-dodging-lobbying-congress/

Quoting jamamama00: Yes but that rate is the percentage, clearly. People like to throw that fact out there as if to say that fed ex man is paying less in taxes than his workers. Nonsense. Companies are given breaks to encourage hiring and growth and exploration.
Quoting idunno1234:

How do you think they arrived at those numbers?  The US has one of the highest corporate tax rates in the world.  BAD.  However, corporations tend to pay at a lower rate than sometimes their lowliest worker.....because tax laws have been written in their favor....ALSO BAD.

I am all for lowering the corporate tax rate and closing all the freakin loopholes.

Quoting jamamama00: No this not true at all. Fred started the company. It's HIS company. Why shouldn't he reap the profits? My dad just got something like half a mil tax refund. It damn sure wasn't from losses. It was because he overpaid. Even when losses are shown it is because opportunities were taken, which means jobs were created and private citizens benefited.
Quoting idunno1234:

Lol....no.  There are a number of reasons why but one of the main ones is that a corporation is able to finagle, often perfectly legally, its books so that it looks like it lost money, yet can still pay your family friend 12 million.  Sound right to you?

Quoting jamamama00: So what?! That just means they overpaid on estimated payments. Happens to my dad all the time. So they essentially loaned the government money. That's a nice thing.
Quoting idunno1234:

"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?!





nb34
by Gold Member on Apr. 27, 2014 at 6:30 PM
2 moms liked this

Yes, a new study done by Harvard political scientists, reached the conclusion that the US is in fact an oligarchy!! That's something I have known for quite a while, but now there is a study that actually proves it.

We are also no longer the best country in the world in many aspects. We are number 16 on the list of social progress indext, and a terrible 70th when it comes to health, and 39th on basic education. Why is that the case, despite the fact that we still have the highest GDP? I'd say the answer lies in our economic policies, our corporatism and our political system that supports it.

Quoting Stephanie329: I agree. We fit the definition of oligarchy quite well.
Quoting nb34:

Well, what do you expect?! We live in an oligarchy, not a democracy!!! No wonder these assholes get away with this crap, the system is behind them.


Sisteract
by Whoopie on Apr. 27, 2014 at 6:42 PM

AMEN

Quoting nb34:

Yes, a new study done by Harvard political scientists, reached the conclusion that the US is in fact an oligarchy!! That's something I have known for quite a while, but now there is a study that actually proves it.

We are also no longer the best country in the world in many aspects. We are number 16 on the list of social progress indext, and a terrible 70th when it comes to health, and 39th on basic education. Why is that the case, despite the fact that we still have the highest GDP? I'd say the answer lies in our economic policies, our corporatism and our political system that supports it.

Quoting Stephanie329: I agree. We fit the definition of oligarchy quite well.
Quoting nb34:

Well, what do you expect?! We live in an oligarchy, not a democracy!!! No wonder these assholes get away with this crap, the system is behind them.


ImNotKarl
by Member on Apr. 27, 2014 at 9:43 PM
1 mom liked this

Ugh. And people flip out about families on PA. This is ridiculous.

Ask me how you can be of at least average intelligence!

nb34
by Gold Member on Apr. 28, 2014 at 7:13 AM

Families on PA are the scapegoat!

Quoting ImNotKarl:

Ugh. And people flip out about families on PA. This is ridiculous.


ImNotKarl
by Member on Apr. 28, 2014 at 11:50 AM

It's just sickening. Corporate welfare is disgusting.

Quoting nb34:

Families on PA are the scapegoat!

Quoting ImNotKarl:

Ugh. And people flip out about families on PA. This is ridiculous.


Ask me how you can be of at least average intelligence!

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