16 Profitable Companies That Pay Almost Nothing In Taxes

[^_^ 5,021]

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...

This is such a classic example of verbal masturbation.

[Zero Sum 305]

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

They very well may increase those profits.

This is such a classic example of verbal masturbation.

Go read some Sam Harris or something.

[^_^ 5,021]

Go read some Sam Harris or something.

the HALness can not be disguised. Clarity just doesn't come naturally to you. I understand.

[Zero Sum 305]

[Gary and Alla 3,694]

How much tax did their employees pay? How much money did they save the government by removing people from the unemployment and welfare rolls? If we had increased their taxes...who would pay for it? The "corporation"? How? Where would they get the money to pay the taxes?

Unlike the government, they cannot print money so if you demand they give money to the government, they have to take it from someone and give it to the government. Take it from whom? How? How will the government use better the money that was taken from someone else? Do you trust the government to make better use of the money than the people it was taken from?

The problem is not that they paid too low an amount of tax, the problem is that they paid ANY tax at all.

[SMR 368]

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%).

I agree. There would need to be some changes to the individual tax code. Basically simplify it so that income is income.

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.

I'm talking about retained earnings. Yes, a lot of investments can be written off as capital expenses, but you still end up paying some taxes over the depreciation life of the capital.

[Mr. Big Dog 10,747]

I agree. There would need to be some changes to the individual tax code. Basically simplify it so that income is income.

I can live with that. But it isn't going to happen. Do you really think that those raking in dividends en masse will suddenly agree to have them taxed as regular income rather than at a rate less than half their top bracket? Remember, they paid a lot for this favorable treatment of non-earned income.

I'm talking about retained earnings. Yes, a lot of investments can be written off as capital expenses, but you still end up paying some taxes over the depreciation life of the capital.

Retained earnings aren't creating any jobs. Otherwise, we'd have more jobs than we could possibly need seeing that corporates have retained huge amounts of earnings - trillions of dollars worth. How big does the retention pile need to be for it to start creating jobs?

[slim 1,514]

The problem is not that they paid too low an amount of tax, the problem is that they paid ANY tax at all.

[Mr. Big Dog 10,747]

The problem is not that they paid too low an amount of tax, the problem is that they paid ANY tax at all.

Don't you guys have some corporate feet to lick?

[Gary and Alla 3,694]

Don't you guys have some corporate feet to lick?

Seriously?

Where does a corporation get money? Can they print it like the government can? NO!

So let's tax the corporation. Where will it come from? Evil profits right? But who gets the profits if they are not taxed...shareholders maybe? Regular people that invested $37 per share? You want to take their money? Employees in the form of pay increases or benefits? You want to take their money? Customers who will pay higher prices for whatever the corporation produces? You want the customer's money?

What is this mumbly-###### about "retained profits"? Retained for what? Mattress stuffing? Lighting cigars? You are joking right? Do you not have some money put away for a rainy day, so to speak? Saving up for a new deck or new sofa? You don't think corporations plan the same way? Seriously?

Do you think some fat, greedy profiteer is going to break open his wallet and pay the tax? Maybe he will sell his yacht in a garage sale to pay the tax so no one else will be affected. Maybe the corporation will just say "Oh well, less for us" Who is "us" in a corporation?

Or maybe the corporation will say "** THIS" and move to Taiwan, or China or Mexico...and take their jobs with them.

Take $10 million from a corporation and do what? Give it to the responsible government? They will do better with it than the corporation? Even if the greedy corporation just banks all its profits and "retains them" it is money the banks can use to lend to other businesses, for mortgages, student loans, etc.

IN ANY CASE, money is ALWAYS better off in the hands of private individuals and corporations than in the hands of the government.

We will not fix this or any economic problem by taking money from people and businesses that earn it and giving it to the government. If the government wants to help the economy they should suspend ALL taxes, curtail spending to absolute essentials and print money they need to operate (which is no different than borrowing money and using it for bailouts)

[Mr. Big Dog 10,747]

Seriously?

Yes, seriously.

[SMR 368]

What is this mumbly-###### about "retained profits"? Retained for what? Mattress stuffing? Lighting cigars? You are joking right? Do you not have some money put away for a rainy day, so to speak? Saving up for a new deck or new sofa? You don't think corporations plan the same way? Seriously?

I agree with your general premise, but to clarify, retained earnings (not retained profits) is an accounting term. It just means that if a company makes money on the books, it either pays out that much in dividends and/or stock buy-backs, or else it reinvests that money in the company, hopefully increasing the share price. "Reinvests" is obviously used very loosely. But it doesn't imply any wrong-doing.

[I AM NOT THAT GUY 5,715]

#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

Such figures are meaningless. The figures you want to see are how much is paid in compensation and dividends versus net taxes paid. It is silly to tax corporations. Instead, redefine what is compensation, if you want to generate more revenues.