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Corporate Tax Dodgers States Report

Corporate Tax Dodgers States Report

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Published by bgkelley

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Published by: bgkelley on Apr 18, 2012
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Corporate Tax Dodging In the Fify States,2008–2010
December 2011
About ITEP
Founded in 1980, he Insiue on axaion and Economic Policy (IEP) is a non-prof, non-parisan research organizaion, based in Washingon,DC, ha ocuses on ederal and sae ax policy. IEP’s mission is o inorm policymakers and he public o he eecs o curren and proposed ax policies on ax airness, governmen budges, and sound economic policy. Among is many publicaions on sae and local ax policy are
Who Pays?  A Distributional Analysis of the ax Systems in All 50 States
Te IEP Guide to Fair State and Local axes
. IEP’s ull body o research is availablea www.iepne.org.
About CTJ
Founded in 1979, Ciizens or ax Jusice (CJ) is a 501 (c)(4) public ineres research and advocacy organizaion, based in Washingon DC,ocusing on ederal, sae and local ax policies and heir impac upon our naion. CJ sa hold briefngs wih lawmakers, esiy beore legislaivecommitees, and explain heir work and he implicaions o ax policy issues direcly o policymakers and policy advocaes across he naion. CJ’sull body o work can be ound here: www.cj.org.
1616 P Street, NW Suite 200
Washington, DC 20036
In Ocober, Souh Carolina Governor Nikki Haley suggesedha gradually repealing he sae’s corporae income ax should be a prioriy or lawmakers in 2012. Haley’s idea was alarming, bu hardly surprising: in he pas year, governors in Arizona andFlorida have proposed similar plans, and lawmakers in a numbero oher saes have moved o enac expensive new corporaeax breaks or reduce he corporae ax rae. Noiceably absenrom he policy debaes in hese saes, however, has been any discussion o wheher businesses in each o hese saes arecurrenly paying he corporae income ax o begin wih.Tis repor uses daa rom he annual fnancial repors fled by some o he bigges and mos profable Forune 500 corporaionso shed ligh on his quesion—and o ideniy sraegies orensuring ha sae corporae income axes will coninue o play an imporan role in sae ax sysems going orward. A November 2011 sudy by Ciizens or ax Jusice and heInsiue on axaion and Economic Policy,
Corporate axpayersand Corporate ax Dodgers
 , showed ha a he ederal level, many profable Forune 500 corporaions have been able o sharply reduce heir corporae income ax bills, oen reducing hemo zero—or less—in years when hey were quie profable.Since hen, we’ve aken a hard look a wha many o hese samecorporaions paid in
income axes naionwide over hosehree years, which we repor here.O he 280 profable Forune 500 corporaions included in ourNovember ederal sudy, 265 ully disclosed heir sae and localincome ax paymens.
Here are some o he key acs ha hesecompanies’ annual repors reveal:Beween 2008 and 2010, hese 265 companies paid saeincome axes equal o only 3.0 percen o heir U.S. profs.Since he average sauory sae corporae ax rae is abou 6.2percen (weighed by gross sae produc), ha means ha overhis period, ully hal o heir profs escaped sae axes enirely.
A ull mehodology is provided a he end o he repor.
68 o he 265 companies managed o pay no sae income ax aall in a leas one year rom 2008 hrough 2010, despie ellingheir shareholders hey made almos$117 billion in preax U.S.profs in hose no-ax years. 16 o hese companies enjoyedmuliple no-ax years.Some companies, such as DuPon, Goodrich, InernaionalPaper and Inel, paid no ne sae income ax over he ull hree- year period.In 2009 alone, 32 companies paid no sae income ax. Anoher105 o he companies paid less han hal he weighed-averagesauory sae corporae ax rae ha year, meaning ha ully one hal o he companies in our sample paid less han hal heaverage sae ax rae.Perhaps mos sriking, i hese 265 corporaions had paid he6.2 percen average sae corporae ax rae on he$1.33 rillionin U.S. profs ha hey repored o heir shareholders, hey  would have paid $82.6 billion in sae corporae income axesover he 2008-10 period. Insead, hey paid only $39.9 billion.Tus, hese 265 companies avoided a oal o $42.7 billion insae corporae income axes over he hree years.Te companies in our survey operae all over he counry. Buhey don’ disclose heir profs and axes on a sae-by-sae basis—so he fndings o his repor don’ ell us conclusively  wheher specifc companies paid any income ax in specifcsaes. ables a he end o his repor sor he ax daa or all 265companies no only alphabeically and by ax raes, bu also by helocaion o each company’s headquarers. On he nex page, wegive deails abou he 68 frms ha paid no sae income ax in aleas one year rom 2008 hrough 2010.
Page 1
68 Corporations Paying No State Income Tax in at Least One Year, 2008–2010 ($-million)
In No-State-Income-Tax YearsNo-Tax YearsIn No-State-Income-Tax YearsNo-Tax YearsCompanyProfitTaxRate200820092010#CompanyProfitTaxRate200820092010#
Pepco Holdings$ 779$ 10313.2%
3PG&E Corp.$ 1,694$ 412.4%
1American Electric Power5,802971.7%
3El Paso$ 1,631$ 382.3%
3Yum Brands$ 430$ 92.0%
1Computer Sciences93916717.8%
2Southern$ 3,066$ 541.8%
1Rockwell Automation210209.6%
2Insight Enterprises$ 15$ 01.6%
2Wells Fargo$ 21,460$ 3371.6%
1Baxter International707385.4%
2ConAgra Foods$ 632$ 81.3%
1Tenet Healthcare21294.2%
2Scana$ 522$ 61.1%
1International Paper551213.8%
2Ashland$ 165$ 21.1%
1Integrys Energy Group511142.7%
2Yahoo$ 448$ 51.1%
1Peabody Energy72181.1%
2Northeast Utilities$ 605$ 71.1%
1Air Products & Chemicals94480.8%
2Progress Energy$ 1,406$ 130.9%
2Consolidated Edison$ 1,319$ 120.9%
1Rockwell Collins1,62760.4%
2American Express$ 3,322$ 280.8%
1EOG Resources1,62860.4%
2J.C. Penney$ 581$ 40.7%
2Monsanto$ 1,203$ 80.7%
1NYSE Euronext521528.8%
1Sempra Energy$ 447$ 30.7%
1Eli Lilly1574528.4%
1Cameron International$ 334$ 20.7%
1Southwest Airlines$ 164$ 10.6%
1Chesapeake Energy1,71227516.1%
1Mattel$ 233$ 10.6%
1Marathon Oil4947715.5%
1R.R. Donnelley & Sons$ 232$ 10.6%
1Apache$ 437$ 20.4%
1Kimberly-Clark$ 1,643$ 70.4%
1Verizon Communications$ 11,921$ 420.4%
1Eastman Chemical193115.7%
1Goldman Sachs Group$ 4,894$ 150.3%
1FMC Technologies6335.3%
1Hewlett-Packard$ 2,232$ 70.3%
1Ingram Micro1315.0%
1Health Management Associat$ 244$ 10.3%
1H.J. Heinz$ 499$ 10.2%
1Interpublic Group14264.3%
1Travelers Cos.$ 4,411$ 80.2%
1MDU Resources$ 572$ 10.2%
1Health Net$ 147$ 00.2%
1Flowserve$ 202$ 00.1%
1Core-Mark Holding6922.8%
1Campbell Soup$ 912$ 00.0%
1General Electric$ 4,247$ 10.0%
Totals$ 116,902$ 2,3352.0%87

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