USA Today: 20 S&P 500 Companies Paid Zero Taxes in Q2

Wednesday, 13 Aug 2014 09:11 PM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Many critics have complained about America's onerous 35 percent maximum federal tax rate for corporations. After all, that's one of the highest, if not the highest, top rate in the developed world.

But many companies are able to largely skirt the U.S. tax man. Indeed, 20 companies in the S&P 500 that reported profits for the second quarter effectively paid zero taxes on them, according to USA Today, which used data from S&P Capital IQ.

The five with the highest amount of net income in the second quarter are Merck ($2 billion), Seagate Technology ($320 million), Thermo Fisher Scientific ($278.5 million), General Motors ($278 million) and Public Storage ($276.8 million).

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

The other 15 listed by USA Today are Iron Mountain, Newmont Mining, Eaton, Avalonbay, Kimco Realty, Prologis, Boston Properties, Apartment Investment, Plum Creek Timber, Citrix Systems, Crown Castle, Macerich, News Corp., Essex Property and First Solar.

While you generally don't want the amount of a company's tax bill to determine whether you invest in its stock, obviously a lower tax bill is good for any company.

As for Merck, Morningstar analyst Damien Conover offers a qualified endorsement of the company.

"Merck's combination of a wide lineup of high-margin drugs and a pipeline of new drugs should ensure strong returns on invested capital over the long term," he writes on Morningstar.com.

"Further, Merck is through the worst of its patent cliff, which should remove the heightened generic competition the company has experienced over the last five years."

But the company's growth will be curbed in the short-term by the merely "moderate" success of its research and development strategy to date, Conover says.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000 

Related Articles:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Shiller: Talk of 'Secular Stagnation' May Have Tripped Stock Market

Monday, 20 Oct 2014 20:11 PM

Nobel laureate economist Robert Shiller of Yale says stories about a global slowdown and deflation, which he says add up . . .

Roubini: Global Economic Slowdown May Spill into US

Monday, 20 Oct 2014 19:50 PM

While star economist Nouriel Roubini of NewYork University expects U.S. economic growth to total about 3 percent annuali . . .

Top Fed Officials Come Down Hard on Big Banks

Monday, 20 Oct 2014 18:00 PM

Banks must change the way employees are compensated and take other steps to fix a corporate culture that encourages misd . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved