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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.
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Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
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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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