Thursday, 18 December 2014 / TRUTH-OUT.ORG
  • Street People: Do You Just "Walk On By"?

    Is there a helpful way to respond when you encounter one of the approximately 578,424 people who were homeless on any given night in the United States today?

  • Quiet Distress Among the (Ex) Rich

    Yves Smith: The fact that economic distress has moved pretty high up the food chain is a sign that this recovery isn't all that it is cracked up to be.

Defense Contractors Pay Little to No Corporate Income Tax While Earning Billions

Tuesday, 08 November 2011 04:51 By Pat Garofalo, ThinkProgress | Report

Last week, Citizens for Tax Justice released a report showing that 30 major corporations have paid no income taxes for the last three years, as they made $160 billion. CTJ looked at 280 companies in the Fortune 500, and found that “while the federal corporate tax code ostensibly requires big corporations to pay a 35 percent corporate income tax rate, on average, the 280 corporations in our study paid only about half that amount.”

In fact, over the last three years, only two industries — retail and health care — paid an effective tax rate of 30 percent or more. And as the Hill noted today, one industry is doing very well when it comes to tax avoidance — defense contractors:

American defense manufacturers pay an average annual tax rate of 17.5 percent, placing them in a class with some of the nation’s least-taxed sectors like information technology, telecommunications, financial services and energy, Citizens for Tax Justice and the Institute on Taxation and Economic Policy concluded. [...]

Boeing, which also makes commercial aircraft, came in with the lowest tax rate among defense firms at -1.8 percent; SAIC had the highest at 28.7 percent, according to the report.

Boeing has been outspoken about its desire to see the corporate tax rate cut, even as it pays nothing in taxes. Prominent Republicans like House Budget Committee Chairman Paul Ryan (R-WI) have joined Boeing’s griping about corporate taxes, ignoring that the company doesn’t actually pay them.

Defense contractors have made billions in profits this year, and “so far earnings by defense contractors have yet to see the effects of the end of fighting in Iraq, plans to draw down Afghanistan and expected cuts in defense spending.”

Pat Garofalo

Pat Garofalo is Economic Policy Editor for ThinkProgress.org and The Progress Report at American Progress.


Hide Comments

blog comments powered by Disqus
GET DAILY TRUTHOUT UPDATES

FOLLOW togtorsstottofb


Error
  • JUser: :_load: Unable to load user with ID: 16290

Defense Contractors Pay Little to No Corporate Income Tax While Earning Billions

Tuesday, 08 November 2011 04:51 By Pat Garofalo, ThinkProgress | Report

Last week, Citizens for Tax Justice released a report showing that 30 major corporations have paid no income taxes for the last three years, as they made $160 billion. CTJ looked at 280 companies in the Fortune 500, and found that “while the federal corporate tax code ostensibly requires big corporations to pay a 35 percent corporate income tax rate, on average, the 280 corporations in our study paid only about half that amount.”

In fact, over the last three years, only two industries — retail and health care — paid an effective tax rate of 30 percent or more. And as the Hill noted today, one industry is doing very well when it comes to tax avoidance — defense contractors:

American defense manufacturers pay an average annual tax rate of 17.5 percent, placing them in a class with some of the nation’s least-taxed sectors like information technology, telecommunications, financial services and energy, Citizens for Tax Justice and the Institute on Taxation and Economic Policy concluded. [...]

Boeing, which also makes commercial aircraft, came in with the lowest tax rate among defense firms at -1.8 percent; SAIC had the highest at 28.7 percent, according to the report.

Boeing has been outspoken about its desire to see the corporate tax rate cut, even as it pays nothing in taxes. Prominent Republicans like House Budget Committee Chairman Paul Ryan (R-WI) have joined Boeing’s griping about corporate taxes, ignoring that the company doesn’t actually pay them.

Defense contractors have made billions in profits this year, and “so far earnings by defense contractors have yet to see the effects of the end of fighting in Iraq, plans to draw down Afghanistan and expected cuts in defense spending.”

Pat Garofalo

Pat Garofalo is Economic Policy Editor for ThinkProgress.org and The Progress Report at American Progress.


Hide Comments

blog comments powered by Disqus