16 Profitable Companies That Pay Almost Nothing In Taxes

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#16 Red Hat, Inc. (RHT)

Pre-tax income: $463 million

Taxes paid: $21 million

Tax rate: 4.62%

#15 Boeing Co. (BA)

Pre-tax income: $17,587 million

Taxes paid: $796 million

Tax rate: 4.46%

#14 Amazon.com (AMZN)

Pre-tax income: $3,512 million

Taxes paid: $152 million

Tax rate: 4.33%

#13 Broadcom Corp. (BRCM)

Pre-tax income: $1,228 million

Taxes paid: $41 million

Tax rate: 3.32%

#12 Host Hotels & Resorts Inc. (HST)

Pre-tax income: $1,116 million

Taxes paid: $34 million

Tax rate: 3.05%

#11 NRG Energy, Inc. (NRG)

Pre-tax income: $5,343 million

Taxes paid: $154 million

Tax rate: 2.88%

#10 TECO Energy, Inc. (TE)

Pre-tax income: $1,620 million

Taxes paid: $37 million

Tax rate: 2.31%

#9 Allegheny Energy Inc. (AYE)

Pre-tax income: $2,538 million

Taxes paid: $58 million

Tax rate: 2.28%

#8 NVIDIA Corporation (NVDA)

Pre-tax income: $1,817 million

Taxes paid: $41 million

Tax rate: 2.24%

#7 Xcel Energy (XEL)

Pre-tax income: $4,334 million

Taxes paid: $77 million

Tax rate: 1.78%

#6 NextEra Energy, Inc. (XEL)

Pre-tax income: $8,572 million

Taxes paid: $149 million

Tax rate: 1.74%

#5 Plum Creek Timber Co. Inc. (PCL)

Pre-tax income: $1,355 million

Taxes paid: $22 million

Tax rate: 1.62%

#4 Western Digital Corp. (WDC)

Pre-tax income: $2,507 million

Taxes paid: $40 million

Tax rate: 1.6%

#3 HCP, Inc. (HCP)

Pre-tax income: $614 million

Taxes paid: $9 million

Tax rate: 1.42%

#2 Carnival Corporation (CCL)

Pre-tax income: $11,250 million

Taxes paid: $126 million

Tax rate: 1.12%

#1 Range Resource Corporation (RRC)

Pre-tax income: $1,228 million

Taxes paid: $7 million

Tax rate: 0.53%

http://www.businessinsider.com/16-more-profitable-companies-that-pay-almost-nothing-in-taxes-2011-3

[mawilson 2,133]

Are we talking about worldwide income, or income generated in the US?

[Mr. Big Dog 10,747]

Clearly, we need to lower corporate tax rates.

[slim 1,514]

Even at those "low" rates it still looks like they're paying more than their fair share.

Several million dollars each. Imagine if those companies were able to use that money to reinvest in their business or pay their employees.

[Dagobert 0]

Where are these figures coming from? Take Boeing for instance. I looked at the annual report financial statements for period ending December 31, 2009 which list the pre tax earnings for 2009 as 1.7 billion, 2008 3.9 billion and 2007 6.1 billion. These annual reports are required to be audited and filed with the SEC if I am not mistaken. Heck, the gross revenue for the company is in the 60 billions for the 3 years, and the COGS is in the 50 billions that only leaves 10 billion for operating and administrative expenses...how do they get a pre taxed earnings of 17 billion?? I think whoever wrote this piece doesn't understand how to read financial statements and how when dealing with larger amounts the (in millions) is used in calculations.

Boeing on the annual reports lists the tax expense and what accounted for that figure. They have the effective tax rate for 2009 at 20+%

If you look at Boeings unaudited 2010 financials you will see that they have 64.3 billion in gross revenue, 51.8 billion in COGS and 8 billion of other income and administrative/operating expenses. That leaves a pre tax profit of 4.5 billion. On that 4.5 billion they have a tax of 1.196 billion which is 27%.

I can't see where from 2007-2010 that Boeing ever came close to having a pre tax profit on 17 billion.

Please for most large companies they post their financials for all to see as they are public record for publicly traded companies. Go look and research the information first hand and don't take the word of Gus Lubin who wrote this article and who "studied English and the Middle East at Dartmouth College" as found from the Business Insider website linked from the OP. He probably couldn't tell the difference between a balance sheet and income statement. Jeezzz.

http://www.boeing.com/companyoffices/financial/quarterly.htm

Boeings investor relations site that has anything financial you need to know about them.

[mawilson 2,133]

Clearly, we need to lower corporate tax rates.

Hey, Bill Clinton thinks it's a good idea.

[Mr. Big Dog 10,747]

Hey, Bill Clinton thinks it's a good idea.

Lower marginal rates if that goes along with the closing of loopholes. Yes, I'm on board with that.

[SMR 368]

Why don't we just eliminate corporate taxes? If the profits are distributed to shareholders and owners, those individuals will pay personal income taxes on those profits. If the profits are reinvested in the company, the growth of jobs and exports will be a huge positive effect on the economy. I don't see why people get worked up about low tax rates on corporations. The success of the company is helping the people in the area. And even if you think that money is all going to rich executives, etc. they are still paying taxes on that money as it comes in.

[slim 1,514]

+1 above!

[Zero Sum 305]

Why don't we just eliminate corporate taxes? If the profits are distributed to shareholders and owners, those individuals will pay personal income taxes on those profits. If the profits are reinvested in the company, the growth of jobs and exports will be a huge positive effect on the economy. I don't see why people get worked up about low tax rates on corporations. The success of the company is helping the people in the area. And even if you think that money is all going to rich executives, etc. they are still paying taxes on that money as it comes in.

Convince the Supreme Court that corporations are no longer 'individuals' for political purposes. You might have an argument after that. It might even kill Wall Street, with shareholders themselves being up for grabs at a brand new exchange system, with company profit/shares no longer being of any value.

[mawilson 2,133]

It might even kill Wall Street, with shareholders themselves being up for grabs at a brand new exchange system, with company profit/shares no longer being of any value.

Why would not having to pay corporate income taxes destroy the value of company shares?

[Zero Sum 305]

Why would not having to pay corporate income taxes destroy the value of company shares?

Because company profits, beyond payroll and operating expenses, are what drives the value of their traded shares. Shifting the profitability at that point to only the shareholders, to drive individual taxation, seems like a good way to decentralize the entire concept of a traded company- and in my opinion spells the recipe for a system where even less attention is given to factors beyond increasing profitability... due to the profitability (by exceedingly greedy individuals now displayed for what they are) being completely driven by individual profit seeking.

[anya-D 8]

Why don't we just eliminate corporate taxes? If the profits are distributed to shareholders and owners, those individuals will pay personal income taxes on those profits. If the profits are reinvested in the company, the growth of jobs and exports will be a huge positive effect on the economy. I don't see why people get worked up about low tax rates on corporations. The success of the company is helping the people in the area. And even if you think that money is all going to rich executives, etc. they are still paying taxes on that money as it comes in.

what about small business? the tax paid, even not much compare to the corporate, it can do everyhting the corporate can in a smaller scale with more variaty! Same with coporate, the money earn to the owner will get tax anyway. Go local business!!

[Mr. Big Dog 10,747]

Why don't we just eliminate corporate taxes?

Just as soon as we declare that corporations are no longer persons.

If the profits are distributed to shareholders and owners, those individuals will pay personal income taxes on those profits.

Check the tax code. While dividend tax rates are tied to one's personal income tax rate, dividends are not taxed in the same way as personal income. Specifically, dividends are taxed at either 0% or 15% depending on the tax bracket the recipient of the dividend falls into (<25% --> 0%, >=25% --> 15%).

If the profits are reinvested in the company, the growth of jobs and exports will be a huge positive effect on the economy.

Investments are largely deductible as it is. Companies invest and grow organically when there's demand for the product they produce and/or when such investment may yield larger profits down the road. The latter usually means automation - i.e. eliminating jobs rather than adding them.

[mawilson 2,133]

Because company profits, beyond payroll and operating expenses, are what drives the value of their traded shares.

Again, I ask, why would not having to pay corporate taxes affect company profits in any way, except maybe increase them?