Fed Ex, Citigroup and Microsoft are among the big companies named in an Americans for Tax Fairness study.
This week, Bill speaks to Nobel prize-winning economist Joseph E. Stiglitz, who argues that we must reform the tax code and stop subsidizing tax dodgers. A recent report by Americans for Tax Fairness suggests that corporate taxes are near a 60-year low — and that’s partially because corporations have become adept at not paying their share.Here’s a list of 10 tax-dodging corporations excerpted from the Americans for Tax Fairness report.Bank of America runs its business through more than 300 offshore tax-haven subsidiaries. It reported $17.2 billion in accumulated offshore profits in 2012. It would owe $4.3 billion in U.S. taxes if these funds were brought back to the U.S.Citigroup had $42.6 billion in foreign profits parked offshore in 2012 on which it paid no U.S. taxes. It reported that it would owe $11.5 billion if it brings these funds back to the U.S. A significant chunk is being held in tax-haven countries.ExxonMobil had a three-year federal income tax rate of just 15 percent. This gave the company a tax subsidy worth $6.2 billion from 2010-2012. It had $43 billion in offshore profits at the end of 2012, on which it paid no U.S. taxes.FedEx made $6 billion over the last three years and didn’t pay a dime in federal income taxes, in part because the tax code subsidized its purchase of new planes. This gave FedEx a huge tax subsidy worth $2.1 billion.General Electric received a tax subsidy of nearly $29 billion over the last 11 years. While dodging paying its fair share of federal income taxes, GE pocketed $21.8 billion in taxpayer-funded contracts from Uncle Sam between 2006 and 2012.Honeywell had profits of $5 billion from 2009 to 2012. Yet it paid only $50 million in federal income taxes for the period. Its tax rate was just 1 percent over the last four years. This gave it a huge tax subsidy worth $1.7 billion.Merck had profits of $13.6 billion and paid $2.5 billion in federal income taxes from 2009 to 2012. While dodging its fair share of federal income taxes, it pocketed $8.7 billion in taxpayer-funded contracts from Uncle Sam between 2006 and 2012.Microsoftsaved $4.5 billion in federal income taxes from 2009 to 2011 by transferring profits to a subsidiary in the tax haven of Puerto Rico. It had $60.8 billion in profits stashed offshore in 2012 on which it paid no U.S. taxes.Pfizer paid no U.S. income taxes from 2010 to 2012 while earning $43 billion worldwide. It did this in part by performing accounting acrobatics to shift its U.S. profits offshore. It received $2.2 billion in federal tax refunds.Verizon made $19.3 billion in U.S. pretax profits from 2008 to 2012, yet didn’t pay any federal income taxes during the period. Instead, it got $535 million in tax rebates. Verizon’s effective federal income tax rate was negative 2.8 percent from 2008 to 2012.
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