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We Should Buy From the Companies That Pay Taxes
Apr 29, 2011
A study of federal corporate income tax payments over five years revealed a lot about the tax avoidance skills of some of our favorite companies. Very few Fortune 500 firms came close to the maximum statutory rate of 35%. Some paid nothing at all.
The American consumer loves its soft drinks, computers, cell phones, and bank accounts. The next time you buy a can of pop be aware that Coca Cola paid a smaller percentage in federal income taxes (6.5%) than Pepsi (13.6%). In the tech industry, Hewlett-Packard (2.9%) and IBM (3.3%) both paid much less than the industry average of about 20%. While Bank of America has received most of the attention for tax avoidance, it seems more respectable next to Citigroup, which had revenues of almost $400 billion but claimed an overall 5-year loss and received a $5 billion refund.
How about the all-important industry that provides our cell phones? Of the two biggest telecommunications companies, Verizon lagged way behind, paying federal taxes at a 9% rate, compared to AT&T's 22%.
Getting gouged at the pump? Don't buy from Exxon or Chevron, which paid 3.6% and 5.6%, respectively.
In many industries companies tended to be lumped together in federal tax payment percentages, as if adapting to similar accounting protocols. Most retail stores paid between 24-32%. Tech firm came in a little lower, at 16-25%. Most food processing and fast food companies paid between 10-20%.
Any good news? The little guy in cell phones, US Cellular, paid almost 35% in federal taxes. Dr. Pepper's 31% rate far surpassed Coke and Pepsi. And enjoy your coffee at Starbucks, which paid 33%.
Detailed results for the study can be found at PayUpNow.org/rankings.
We are at a crossroads
This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. If you share our vision, please contribute whatever you can to sustain our work. |
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Paul Buchheit
Paul Buchheit is an advocate for social and economic justice, and the author of numerous papers on economic inequality and cognitive science. He was recently named one of 300 Living Peace and Justice Leaders and Models. He is the author of "American Wars: Illusions and Realities" (2008) and "Disposable Americans: Extreme Capitalism and the Case for a Guaranteed Income" (2017). Contact email: paul (at) youdeservefacts.org.
A study of federal corporate income tax payments over five years revealed a lot about the tax avoidance skills of some of our favorite companies. Very few Fortune 500 firms came close to the maximum statutory rate of 35%. Some paid nothing at all.
The American consumer loves its soft drinks, computers, cell phones, and bank accounts. The next time you buy a can of pop be aware that Coca Cola paid a smaller percentage in federal income taxes (6.5%) than Pepsi (13.6%). In the tech industry, Hewlett-Packard (2.9%) and IBM (3.3%) both paid much less than the industry average of about 20%. While Bank of America has received most of the attention for tax avoidance, it seems more respectable next to Citigroup, which had revenues of almost $400 billion but claimed an overall 5-year loss and received a $5 billion refund.
How about the all-important industry that provides our cell phones? Of the two biggest telecommunications companies, Verizon lagged way behind, paying federal taxes at a 9% rate, compared to AT&T's 22%.
Getting gouged at the pump? Don't buy from Exxon or Chevron, which paid 3.6% and 5.6%, respectively.
In many industries companies tended to be lumped together in federal tax payment percentages, as if adapting to similar accounting protocols. Most retail stores paid between 24-32%. Tech firm came in a little lower, at 16-25%. Most food processing and fast food companies paid between 10-20%.
Any good news? The little guy in cell phones, US Cellular, paid almost 35% in federal taxes. Dr. Pepper's 31% rate far surpassed Coke and Pepsi. And enjoy your coffee at Starbucks, which paid 33%.
Detailed results for the study can be found at PayUpNow.org/rankings.
Paul Buchheit
Paul Buchheit is an advocate for social and economic justice, and the author of numerous papers on economic inequality and cognitive science. He was recently named one of 300 Living Peace and Justice Leaders and Models. He is the author of "American Wars: Illusions and Realities" (2008) and "Disposable Americans: Extreme Capitalism and the Case for a Guaranteed Income" (2017). Contact email: paul (at) youdeservefacts.org.
A study of federal corporate income tax payments over five years revealed a lot about the tax avoidance skills of some of our favorite companies. Very few Fortune 500 firms came close to the maximum statutory rate of 35%. Some paid nothing at all.
The American consumer loves its soft drinks, computers, cell phones, and bank accounts. The next time you buy a can of pop be aware that Coca Cola paid a smaller percentage in federal income taxes (6.5%) than Pepsi (13.6%). In the tech industry, Hewlett-Packard (2.9%) and IBM (3.3%) both paid much less than the industry average of about 20%. While Bank of America has received most of the attention for tax avoidance, it seems more respectable next to Citigroup, which had revenues of almost $400 billion but claimed an overall 5-year loss and received a $5 billion refund.
How about the all-important industry that provides our cell phones? Of the two biggest telecommunications companies, Verizon lagged way behind, paying federal taxes at a 9% rate, compared to AT&T's 22%.
Getting gouged at the pump? Don't buy from Exxon or Chevron, which paid 3.6% and 5.6%, respectively.
In many industries companies tended to be lumped together in federal tax payment percentages, as if adapting to similar accounting protocols. Most retail stores paid between 24-32%. Tech firm came in a little lower, at 16-25%. Most food processing and fast food companies paid between 10-20%.
Any good news? The little guy in cell phones, US Cellular, paid almost 35% in federal taxes. Dr. Pepper's 31% rate far surpassed Coke and Pepsi. And enjoy your coffee at Starbucks, which paid 33%.
Detailed results for the study can be found at PayUpNow.org/rankings.
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