Tag Archives: corporations

The Effective Corporate Tax Rate is Far Lower than the Publicized Statutory Rate

You may have heard that the U.S. corporate tax rate (35%) is the highest in the world but the effective corporate tax rate — what corporations actually pay — fell from 42.5% in 1960 to 17.8% in 2012, according to … Continue reading

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A Case Against Business Climate Rankings

Can we trust business climate rankings? Peter Fisher’s study provides a case against trusting business climate rankings and identifies possible motives behind the rankings. “As business climatology’s sponsorship has diversified, so have its practitioners. However, its core methodological tricks have … Continue reading

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Corporate Tax Breaks Doubled Since 1987

Guess how much corporate tax breaks have doubled since 1987? If you guessed “more than doubled” you would be right. According to a GAO report the annual cost of corporate tax breaks, including one that eases shifting profits offshore and … Continue reading

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Corporate Profits Soar with Anemic Disposable Income and Effective Corporate Tax Rates at a 40 Year Low

The mismatch between the growth of corporate earnings and disposable personal income continues unabated. The New York Times reports, “Corporate earnings have risen at an annualized rate of 20.1 percent since the end of 2008… but disposable income inched ahead … Continue reading

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Under Obama: Profits Twice as High as During President Reagan’s Terms, More than Any President Since WWII

Bloomberg: “U.S. corporations’ after-tax profits have grown by 171 percent under Obama, more than under any president since World War II, and are now at their highest level relative to the size of the economy since the government began keeping … Continue reading

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Google and Starbucks Status in the No Tax Club

NPR reports: Google didn’t pay taxes on $2 billion in worldwide income in 2011 by shifting $9.8 billion in revenue into a Bermuda shell company. Despite Starbucks generation of 398 million euros in sales in Britain in 2011 it paid … Continue reading

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Apple’s Corporate Filing: 70% of Earnings Land in Foreign Countries

According to ValueWalk: “According to the corporate filing, accountants at Apple Inc. (NASDAQ:AAPL) legally allocated approx. 70 percent of the company’s earnings in foreign countries in order to avoid higher tax rates, notwithstanding that most of Apple’s executives, employees, product … Continue reading

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Loopholes in Fiscal Cliff Bill Wipe Out Revenue from Taxes on the Rich

Corporate sponsored loopholes in the “Fiscal Cliff Bill” wipe out revenue from tax increases on the rich. Special interests win again!

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Corporate Profits Soar While Paying Less into Federal Revenue

Corporate profits have soared in recent years as the following FRED graph depicts. But when compared to other developed countries U.S. collects less in corporate taxes as a percentage of GDP than most other industrialized countries. A growing divergence exists between corporate tax share of … Continue reading

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Last Year Companies Paid Less than Half of the Taxes that They Think They Owe!

From Herald Online: WASHINGTON, SEPT. 10, 2012 — /PRNewswire/ — A study released today by The Ferraro Law Firm of annual SEC disclosures showed that collectively the Fortune 500 companies believe that they have underpaid their corporate income tax by … Continue reading

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