CORPORATE TAXES

June 1, 2013


The following information was taken from FORBES MAGAZINE.

The past few months various corporations have been greatly criticized for paying few if any Federal corporate taxes.  Keep in mind, they follow existing tax codes but they simply find “loopholes” that allow them to minimize tax liabilities. Don’t we do the very same?  I know I do. FORBES MAGAZINE just published a list of twenty-five (25) companies and the taxes they did pay in 2012.  It’s quite a list and very telling.  Let’s take a look.  (PLEASE NOTE: These are not in any order.  You may do that on your own. )

  •   Wells Fargo
  • JP Morgan-Chase
    • $8.1 Billion in Taxes
    • $22.9 Billion in Net Income
    •  26% Effective Tax Rate
  • Apple
    • $ 14.2 Billion in Taxes
    • $41.7 Billion in Net Income
    •  25% Effective Tax Rate
  • Chevron
    • $20 Billion in Taxes
    • $26 Billion in Net Income
    •  43% Effective Tax Rate
  • Exxon Mobile
    • $31 Billion in Taxes
    • $45 Billion in Net Income
    • 39% Effective Tax Rate
  • Wal-Mart
    • $8 Billion in Taxes
    •  $17 Billion in Net Income
    • 31% Effective Tax Rate
  • Conoco
    • $7.9 Billion in Taxes
    • $8.4 Billion in Net Income
    • 51.4% Effective Tax Rate
  • Berkshire Hathaway
    • $6.9 Billion in Taxes
    • $14.8 Billion in Net Income
    •  28% Effective Tax Rate
  • IBM
    • $5.3 Billion in Taxes
    • $ 16.6 Billion in Net Income
    • 24% Effective Tax Rate
  • Microsoft
    • $4.6 Billion in Taxes
    • $ 15.5 Billion in Net Income
    •  22.8% Effective Tax Rate
  • Phillip Morris
    • $3.8 Billion in Taxes
    •  $8.8 Billion in Net Income
    •  29.5% Effective Tax Rate
  • Goldman Sachs
    • $3.7 Billion in Taxes
    • $7.6 Billion in Net Income
    • 33% Effective Tax Rate
  • Comcast
    • $3.7 Billion in Taxes
    • $6.2 Billion in Net Income
    • 32% Effective Tax Rate
  • Procter & Gamble
    • $3.6 Billion in Taxes
    • $12.9 Billion in Net Income
    • 23.5% Effective Tax Rate
  • Johnson & Johnson
    • $3.3 Billion in Taxes
    • $10.9 Billion in Net Income
    • 23.7% Effective Tax Rate
  • Intel
    • $3.2 Billion in Taxes
    • $ 10.3 Billion in Net Income
    • 23.6% Effective Tax Rate
  • Occidental Petroleum
    • $3.1 Billion in Taxes
    • $4.6 Billion in Net Income
    • 42% Effective Tax Rate
  • United Health Care
    • $ 3.1 Billion in Taxes
    • $5.3 Billion in Net Income
    • 33.9% Effective Tax Rate
  • Walt Disney
    • $3.0 Billion in Taxes
    • $  5.6 Billion in Net Income
    • 32.7% Effective Tax Rate
  • At&T
    • $2.9 Billion in Taxes
    • $7.3 Billion in Net Income
    • 27.8% Effective Tax Rate
  • Oracle
    • $2.9 Billion in Taxes
    •  $10.6 Billion in Net Income
    • 21.4% Effective Tax Rate
  • Coca-Cola
    • $2.7 Billion in Taxes
    • $9.0 Billion in Net Income
    • 23.1% Effective Tax Rate
  • Home Depot
    • $2.7 Billion in Taxes
    • $4.5 Billion in Net Income
    • 37.2% Effective Tax Rate
  • McDonalds
    • $2.6 Billion in Taxes
    • $ 5.5 Billion in Net Income
    • 32.4% Effective Tax Rate
  • Google
    • $2.6 Billion in Taxes
    • $ 10.7 Billion in Net Income
    • 19.4% Effective Tax Rate

In looking at a summary:

TOTAL TAXES: $ 157.70 Billion

                TOTAL NET INCOME:  $382.9 Billion

AVERAGE % TAXES:  41.9%

I run a small three-man engineering consulting firm.  My taxes run approximately 41%; i.e. Federal, city, country, etc etc.  I definitely feel our tax rates are much too high.  We are taxing those companies providing valuable services AND providing valuable employment.  Does anyone really think the codes will change for the better?  Congress and the IRS will never relinquish control and they do that by taking from those who work for a living.  The value-added is not really balanced.  I welcome your viewpoint.

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