Corporate Titans and Politicians like to complain about the high Corporate Tax Rates which rose this year, from a maximum of 35% to 39%. But, many of the largest companies don’t pay anywhere near that top rate. And remember that the fees that they pay for tax advice are–guess what–Tax-Deductible.
Yes, some of our largest corporations did pay a reasonably high Tax-Rate in 2013, such as: Exxon-Mobil (42.0%); Wal-Mart (31.0%) and JPMorgan Chase (30.8%). But others, such as: GE (4.19%); Merck (18.5%) and Microsoft (19.2%) undoubtedly paid at a lower rate than what some readers of this Blog Post pay. It has been reported that some corporations even boast of the capabilities of their Tax Departments in protecting profits.
The linked article from the NY Times points-out that, according to a 2010 Government Accountability Office study, corporations paid an average Effective Tax Rate of 12.6% in 2010. Unfortunately, many of the loopholes available to Corporate America are off-limits to you and me. Could you imagine if we had high-priced lobbyists to call on Congress.too?
The linked article was written by Andrew Ross Sorkin for the Times, http://dealbook.nytimes.com/2014/04/14/looking-at-some-corporate-tax-loopholes-ordinary-citizens-may-envy/?ref=business. If Mr. Sorkin’s name is familiar, besides writing for the Times, he is also a host on CNBC’s TV “Squawk Box” show during the early morning.