Top 10 Dirty Corporate Tax Dodgers of 2011

Two weeks ago it was announced that the U.S. has the highest corporate tax rate in the world -- sparking furious debate from Fox News types concerned about corporate well-being. The truth is, the actual corporate tax rate may not matter when corporations don't pay anything close to it anyway.

Rainforest Action Network's new "Top 10 Dirty Corporate Tax Dodgers of 2011" infographic reviewed top bank, oil and coal companies: Bank of America, Citi, JPMorganChase, Wells Fargo, Chevron, Exxon, ConocoPhillips, Arch Coal, Alpha Natural Resources and Peabody Energy. We found that none of these ten companies paid anything close to the 35 percent corporate tax rate. In fact, Bank of America and Alpha Natural Resources paid no taxes at all.

Collectively, these ten corporations made a profit of $189.178 billion while only paying $13.34 billion in taxes in 2011. If they had paid the 35 percent corporate tax rate it would have put $52.87 billion back into the economy. It begs the question, what do the rest of us get while the government allows big business to game the system?

Here's a bit more of the wonky details from U.S. News and World Report:

The real issue lies in understanding the huge gap between the "nominal rate" (the list price) and the "real rate" (the tax rate that most companies actually pay.) These two rates diverge widely. The nominal federal tax rate on the largest corporations is now 35 percent. State taxes, on average, bump this to 39.2 percent. This nominal rate ranks as the highest among developed countries.

However, no major company really pays the nominal rate. Big companies enjoy a huge buffet of credits, shelters, deductions, and other preferences that reduce their rate to an average of 13 percent. Many profitable companies pay no federal income tax at all. Regardless of our nominal rate, our real corporate tax rate is among the lowest.

The ten banks, oil and coal companies in this infographic are responsible for foreclosing on millions of people's homes and polluting our air, water and climate. At the same time, they pay next to nothing into a tax system that provides the very services that protect the homeless, the sick and our environment.

Bottom-line, these dirty corporations don't need any more handouts, bailouts, or subsidies. Our country does not have a money problem; it has a priorities problem. We're subsidizing and bailing out multi-billion dollar businesses at the expense of everything else: our economy, our climate, our health, and our future.

Here's two things you can do about:

1. Tell President Obama; it's time corporate tax dodgers pay their fair share!

2. Join the 99%Power in taking direct action with thousands upon thousands to shine a light on the exact corporate actors who created this historically unjust economy. Under the banner of 99% Power, there will be more demonstrations leading up to and at corporate shareholder meetings this Spring than at any point in American history.

 

Follow Rebecca Tarbotton on Twitter: www.twitter.com/@beckytarbotton

Comments

[WI Patriot]

08:22 PM on 04/10/2012

Top 10 (for profit) non-profit tax evaders -

All of them!


Take the Rainforest Action network for example - they take public funds, and made a million dollars last year in "surplus" - with no taxes to boot!
http://ran.org/sites/default/files/ran_audit_report_2011_-_final_signed.pdf

And all that without doing a thing for rainforests except blogging! Its better than crime - its non-profit skimming!

[Bill Cimino]

06:22 PM on 04/10/2012

We should first ask ourselves how much government is needed by society. Our total tax revenues, including federal, state, and local taxes, comprise 27% of GDP, a level far lower than other "first-world" countries. Among the 33 nations of the Organization for Economic Co-operation and Development, only three (Korea, Turkey, and Mexico) take in less tax revenue than we do (as a percentage of GDP).

Is the United States is generating the revenue it needs to fund things like transportation, schools, healthcare, college, and many other important functions of government? No.

Reference: Tamara Draut, U.S. New and World Report, http://www.usnews.com/debate-club/do-the-rich-pay-their-fair-share-in-taxes/blame-budget-shortfall-on-tax-cuts-for-the-rich

[AleMaker]

03:52 PM on 04/10/2012

I find it interesting that conservatives on this thread are actually blaming President Obama for GE not being listed in this article, rather than agreeing that the article has a good point.

[Chipper1]

02:10 PM on 04/10/2012

Obama can't close the loopholes. Congress has to do it. Congress, being bought and paid for by the corporations, are not about to cut off their own funding. Even if you vote for some seemingly incorruptible candidate, the next time they're up for election, they'll be lined up for corporate money like the rest.

[Cecelia Nunn Haack]

12:42 PM on 04/10/2012

This is going to continue until we, the people, demand a more simple tax structure that does not allow corporations and wealthy folks to drastically reduce their tax bills. We have to make our voices heard by become well informed activists, not mere sheep who grumble and complain and yet do nothing to inspire change. I challenge you to write to the President, your elective officials and letters to the editor -- let your voices be heard.

[HR Mickelson]

12:14 PM on 04/10/2012

We have the best government money can buy. Therefore, when you have this extreme amount of excess cash at hand it is no problem for those who have it to spend it on an almost sure investment in buying the legislators. You have to spend money to make money and these guys have it figured out, the rest of us are just lambs to the slaughter.
Remember money is these guys’s God, and they pray to it each and every minute. Also remember they don’t care about anything or anyone else other than their God.
This country needs to wake up and get control over this group and the sooner the better.
I know, I am dreaming.

[Joe Dallas]

11:39 AM on 04/10/2012

Two substantive errors in the authors analysis 1) For the banks and other financial institutions, the analysis fails to account for the net operating losses incurred in the 2008 financial meltdown which are available to offset income with the corporations become profitable. Does the author believe it is fair to tax a corporation in years that they are profitable, but disallow deductions for losses incurred in loss years. 2) The profit the author compares the companies worldwide income with the US taxes paid. Does the author attempt to compare US income tax paid with US Source income. of course not. That would disprove the authors misleading claim. Lets mix up our denominators and numerators so that we can continue to make a misleading claim. Does the author believe a company should pay the full rate of foreign tax and then receive no deduction for the foreign taxes paid.

[poster boy]

12:03 AM on 04/12/2012

"Does the author believe a company should pay the full rate of foreign tax and then receive no deduction for the foreign taxes paid."

By deducting taxes paid on home soil to offset taxes paid to expand and operate outside one's home borders, isn't the same company actually asking taxpayers to subsidize their payment of taxes to foreign countries?

Nobody forces companies to become multi-national. I would not be alone in considering the lack of ease of international expansion to likely yield benefits worth considering.

[demisfine]

11:20 AM on 04/10/2012

All huge corporate donors to the GOP.
Surprised???
Then you aren't paying attention.

[demisfine]

11:19 AM on 04/10/2012

A vote for any Republican is a vote for more of the same.

[becky bradshaw]

11:18 AM on 04/10/2012

We should first ask ourselves how much government is needed by society. Our total tax revenues, including federal, state, and local taxes, comprise 27% of GDP, a level far lower than other "first-world" countries. Among the 33 nations of the Organization for Economic Co-operation and Development, only three (Korea, Turkey, and Mexico) take in less tax revenue than we do (as a percentage of GDP).

Is the United States is generating the revenue it needs to fund things like transportation, schools, healthcare, college, and many other important functions of government? No.

Reference: Tamara Draut, U.S. New and World Report, http://www.usnews.com/debate-club/do-the-rich-pay-their-fair-share-in-taxes/blame-budget-shortfall-on-tax-cuts-for-the-rich

[nehemiah scudder]

10:05 AM on 04/10/2012

I think the list of 10 "dirty" companies doesnt inclued GE not because of any supposed relation to Obama but because it isnt thowing people out on the street because of thier failed business practices or polluting the environment considering that this is a study done by the Rainforest Action Network and not the Obama re-election commitee. I mean I could be wrong maybe GE has been forclosing on homes and polluting the environment, but if they are i havnt seen anything about it.

[Countess]

10:01 AM on 04/10/2012

We have a government by and for these corporations because we have allowed the politicians to build a system of legalized corruption that has made the public interest almost completely irrelevant and because any change for the better must come from these same corrupt politicians who have become increasingly rich and disconnected it is hard to imagine this ever happening. If 'citizens United' were eliminated today we would still have a thoroughly corrupt congress and presidential candidates courting corporate sponsors whom they would pay back once they have been elected. Wall street gave a fortune to Obama and we got saddled with Summers, Geithner and Holder who have protected the wall street criminals and now these same donors have adopted Romney and he will pay them back as well should he win.

[Micheal Anderson]

09:23 AM on 04/10/2012

What a surprise, banks and oil companies.

Good thing tax breaks to industry isn't welfare like tax breaks to the poor are.

[psnyder325]

06:19 AM on 04/10/2012

Time for all corporations, banks and the wealthy to pay their fair share. And that should be a minimum of 1/3rd of what they make. They profit from our society and need to give BACK to our society NOW.

[liberalpolicysucks]

01:02 AM on 04/10/2012

I like how you don't mention GE, who paid ZERO in corporate tax $$... (then again, they do donate to Obama)

[Micheal Anderson]

09:24 AM on 04/10/2012

Actually GE did pay some income taxes in 2010, but it's pretty convoluted. You could be right saying they did pay taxes and saying they didn't pay taxes.

[schnauzergirl]

09:33 AM on 04/10/2012

Dollar-wise this is the TOP 10. GE could easily be number 11, but would not make the list The author did not say these were the ONLY ones. AND this is only for 2011. They have gotten off in some past years, but maybe last year they didn't do quite as well.

[not one of the sheep]

12:38 PM on 04/10/2012

The total tax credits claimed by those on the list is $1.71 billion. GE alone in 2009 claimed $4.1 billion in tax credits and $3.2 billion in 2010. There are those who bloviate as to the reason GE isn't on the list but it's obvious to everyone with independent thought.

[not one of the sheep]

12:39 PM on 04/10/2012

http://www.nytimes.com/2011/03/25/business/economy/25tax.html?pagewanted=all