Tags: corporate | taxes

Corporate Taxes Range from Nothing to 400 Percent

By Dan Weil   |   Tuesday, 05 May 2009 10:03 AM

President Obama Monday proposed to raise $190 billion over the next decade by closing offshore tax shelters utilized by several major companies.

But he might be interested to know that some corporations are dutiful taxpayers, handing over as much as 400 percent of their income to the government, while others pay effectively zero.

That was the conclusion of a study by research firm Capital IQ of all the companies in the Standard & Poor’s 500 Index. The study was commissioned by BusinessWeek magazine, which wrote a story about the results.

The official corporate tax rate is 35 percent.

On the low end of taxes paid stands FPL Group, the big Florida utility. It paid only $88 million in taxes on profit of almost $7 billion over the past four years.

And how did FPL do that? By setting up everything from 1,500 acres of solar electric systems in California to wind farms across the U.S., BusinessWeek reports.

FPL did incur the expense of more than $500,000 for Washington lobbyists last year to make sure the tax breaks stayed in place.

Troubled industries suffer the highest tax rates, BusinessWeek reports. The auto sector pays 45.5 percent on average, banks pay 50.3 percent.

According to Americans for Tax Reform, U.S. corporate taxes are tied with Japan for the highest in the world.

“At the very least, we need to lower our corporate tax rate to 25 percent or less,” the group says on its web site.

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President Obama Monday proposed to raise $190 billion over the next decade by closing offshore tax shelters utilized by several major companies.But he might be interested to know that some corporations are dutiful taxpayers, handing over as much as 400 percent of their...
corporate,taxes
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2009-03-05
 

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