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Homesick Tiger
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Greenbrier, AR
Member since Nov 2006
12440 posts

25 US Corps. that pay the highest taxes


Effective tax rates.

1. Exxon - 39%
2. Chevron - 43%
3. Apple - 25%
4. Wells Fargo - 31.2
5. JP Morgan Chase - 26%
6. Wal-Mart - 31%
7. Conoco Phillips - 51.5%
8. Berkshire Hathaway - 28%
9. IBM - 24%
10. Microsoft - 22.8%
25. Google - 19.4%

LINK

Anyone else see a pattern here?








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Beer Bryant
Alabama Fan
In a Hidden Bunker
Member since Jan 2012
8792 posts

re: 25 US Corps. that pay the highest taxes


Gotta stop subsidizing "Big Oil".





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austingator
Florida Fan
austin
Member since Jan 2009
5380 posts

re: 25 US Corps. that pay the highest taxes


They pick winners and losers, I mean who isn't shocked?

I'm sure GE and NBC will get their refunds.






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GeauxxxTigers23
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Member since Apr 2013
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re: 25 US Corps. that pay the highest taxes


ConocoPhillips getting the shaft.





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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
31819 posts

re: 25 US Corps. that pay the highest taxes


The tax rates on the oil companies are mostly due to foreign governments that tax the hell out of them. The effective rate for U.S. taxes on oil companies is astoundingly low. Like single digits or close to it last time I checked. Due mostly to foreign tax credits the U.S. allows.





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GeauxxxTigers23
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re: 25 US Corps. that pay the highest taxes


quote:

The tax rates on the oil companies are mostly due to foreign governments that tax the hell out of them. The effective rate for U.S. taxes on oil companies is astoundingly low. Like single digits or close to it last time I checked. Due mostly to foreign tax credits the U.S. allows.





I can't remember his name but there was a poster on here last week that explained how that was complete bull shite.






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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
31819 posts

re: 25 US Corps. that pay the highest taxes


What I said is bullshite?

Nope. It is not. It is accurate. Other poster is FOS or clueless if he disagrees.






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GeauxxxTigers23
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re: 25 US Corps. that pay the highest taxes


He was a CPA or tax lawyer or something like that. He made a good argument. Don't take my word for it. I guess he could be wrong. Basically said there is no way to get out of the %35 corporate tax rate.


ETA: I'll see if I can find the thread.



This post was edited on 6/13 at 7:34 am


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BlackHelicopterPilot
LSU Fan
Top secret lab
Member since Feb 2004
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re: 25 US Corps. that pay the highest taxes


quote:

What I said is bullshite?

Nope. It is not. It is accurate. Other poster is FOS or clueless if he disagrees.


1) I'd like to stipulate to your expertise here

2) I have a question in order to clarify:


XYZ Corp earns some taxable amount overseas

XYZ pays 25% tax in that country (call it FR for Foreign Rate)

A) Does XYZ pay US Rate - FR to US Treasury?

B) Does XYZ need to keep that money in that country or is any repatriated funds treated the same?



This post was edited on 6/13 at 7:39 am


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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
31819 posts

re: 25 US Corps. that pay the highest taxes


Don't worry about it. I have to get to work and can't spend a lot of time on it, but I'll summarize...

They are not "getting out" of the 35% tax rate in the U.S.

Foreign govs arse rape the oil companies to extract oil on their lands. The U.S. lets the oil companies offset their U.S. tax liability with foreign tax credits for the money being paid to the foreign governments. The effect is the U.S. gets very little as a percentage of profits due to all the tax credits.

Here is a link to Exxon's financials. See note 18. Worldwide income (what they are taxed on in the U.S.) was 73,257,000,000. Current U.S. federal tax expense was 1,547,000,000. Effective U.S. rate of about 2%.

LINK






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Homesick Tiger
LSU Fan
Greenbrier, AR
Member since Nov 2006
12440 posts

re: 25 US Corps. that pay the highest taxes


quote:

ConocoPhillips getting the shaft.


To do a 180% turn, notice how the tech companies have the lowest rates? Intriguing?






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GeauxxxTigers23
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re: 25 US Corps. that pay the highest taxes


OK I found it. You're right. I was wrong.





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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
31819 posts

re: 25 US Corps. that pay the highest taxes


quote:

XYZ Corp earns some taxable amount overseas

XYZ pays 25% tax in that country (call it FR for Foreign Rate)

A) Does XYZ pay US Rate - FR to US Treasury?

B) Does XYZ need to keep that money in that country or is any repatriated funds treated the same?


As long as the operations are not carried out through a lower tier flow through entity (which could trap the foreign tax credits), sorta.

XYZ calculates its U.S. tax liability on its worldwide income. Then it reduces it by foreign tax credits (sometimes a complex calculation) for taxes paid to foreign countries to determine how much it actually has to pay to the U.S.

B) Only comes into play if the operations are carried out through a foreign corporate entity (that has not elected flow through treatment) owned by XYZ. In that case, the income is not taxed to XYZ in the U.S. until it is paid out, ie expatriated. Unless the income falls into the Subpart F classification, which generally applies to foreign personal holding company income - generally passive in nature.






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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
14387 posts

re: 25 US Corps. that pay the highest taxes


quote:

They are not "getting out" of the 35% tax rate in the U.S.
This is the key point. Exxon is paying at least 35% tax on all of its income. The amount of income subject to 35% U.S. tax is only a fraction of Exxon's world-wide income. $1,547,000,000/35% = $4,420,000,000 is effectively the amount of income on which U.S. taxes are collected, or about 1/18th of world-wide income.

Disclaimer: This analysis assumes book income equals taxable income which is highly unlikely.






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EST
LSU Fan
Investigating
Member since Oct 2003
14071 posts

re: 25 US Corps. that pay the highest taxes


Those tax rates are ridiculous if that is what they actually pay. Should be no more than 10%.





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idlewatcher
LSU Fan
Houston
Member since Jan 2012
6663 posts

re: 25 US Corps. that pay the highest taxes


quote:

Foreign govs arse rape the oil companies to extract oil on their lands.


Uh what? Which countries are you talking about? We own and operate fields in Egypt and Indonesia and the tax structure is quite favorable to us. "Foreign govs" is quite a blanket statement wouldn't you agree?

To be fair to what you initially stated, however, certain countries do in fact have high tax rates for US companies (as well as "foreign" co.'s) if they are not a net importer.






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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
31819 posts

re: 25 US Corps. that pay the highest taxes


quote:

Uh what? Which countries are you talking about? We own and operate fields in Egypt and Indonesia and the tax structure is quite favorable to us. "Foreign govs" is quite a blanket statement wouldn't you agree?

To be fair to what you initially stated, however, certain countries do in fact have high tax rates for US companies (as well as "foreign" co.'s) if they are not a net importer.


Here is an example. A 20% ADDITIONAL royalties tax on oil companies in addition to the numerous other taxes imposed by the government.

Trust me, it is an arse raping when you add it all up by some countries. I saw a good documentary on Cheveron several years ago and some foreign governments were collecting north of 60% in total taxes on foreign oil companies. THAT is what drives up the overall effective tax rate on oil companies. The U.S. piece is usually tiny (as a percentage)after all the foreign tax credits.

quote:

CARACAS, Venezuela —
Venezuela is imposing a windfall profits tax on royalties from oil projects when crude prices are above $40 a barrel, seeking to squeeze as much as $16 billion mostly out of foreign oil companies, the government said Tuesday.

Energy Minister Rafael Ramirez said the tax, which was decreed by President Hugo Chavez last week, will allow the government to collect between $9 billion and $16.3 billion this year.

A 20 percent tax will be in effect when the price of a barrel of Venezuelan oil is between $40 and $70 a barrel, Ramirez said. When the price is between $70 and $90, the tax rises to 80 percent. Between $90 and $100, the tax reaches 90 percent, and if the price tops $100 a barrel, a 95 percent tax will be imposed.

The price of Venezuela's heavy, sulfur-laden crude reached $94.60 a barrel Tuesday, Ramirez said.


quote:

PDVSA is awaiting a ruling from the World Bank's International Center for Settlement of Investment Disputes in a dispute with Exxon Mobil Corp. The case was brought by the Irving, Texas-based company in 2007 over the government's nationalization of the Cerro Negro heavy oil project.

Exxon Mobil has also sought to recoup increased royalties and taxes imposed by the government starting in 2004. Exxon Mobil's oil project was one of four taken over by Chavez's government in May 2007 as he brought the oil industry under majority state control.



LINK






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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
31819 posts

re: 25 US Corps. that pay the highest taxes


Here is a tax hike from 2006. Trust me, the oil companies are paying 60-70% in TOTAL taxes in some foreign countries to operate there.

quote:

Caracas, Venezuela, May 9, 2006—On his weekly television show Alo Presidente, on Sunday, VenezuelanPresident Hugo Chavez announced a new "extraction" tax of at least33% for all oil companies operating in Venezuela. Chavez said the taxcould create over $1 billion in new revenue.

According to the Venezuelan daily El Universal, the Ministry of Energy andPetroleum will introduce a reform to the hydrocarbons law to the NationalAssembly today. The change will ensurethat at least one-third the value of every barrel stays in the hands of theVenezuelan state. As such, the tax is nearly identical to a royalty.

For some companies, the changewill be minimal. El Universal reportedthat for PDVSA’s own production, they will continue to charge the royalty of30%, plus the extraction tax, will make the total tax 33%. For now, the newly formed joint ventureoperations with Venezuela’sPDVSA will be exempt from the new tax, as they are already paying 33% in royalties. While, the associations in the Orinoco belt will have to pay 16% in the new tax, on topof the 17% royalty they currently pay, to equal 33%. It was reported that the additional revenuefrom this extraction tax could equal $1.34 billion in its first year alone- ifpetroleum prices remain at their present value.

Other tax hikes are in theplanning stages for natural gas companies and for the oil companies operatingalong the Orinoco River, which is believedto have extra-heavy crude reserves of up to 235 billion barrels. Among the companies that operate along the Orinoco belt are the North American ExxonMobil andChevron, which currently pay 34% in income taxes. Chavez announced that they are going toincrease that “to 50%, but in order to do so we need to modify the HydrocarbonLaw.”


LINK

quote:

Venezuela is the fifth largest oil exporting country in the world with the largest reserves of heavy crude oil at an estimated 99.4 billion barrels (1.580×1010 m3) as of 2010. Venezuela is the second largest reserves of light and heavy crude oil in the western hemisphere.



This post was edited on 6/13 at 12:16 pm


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ljhog
Arkansas Fan
Lake Jackson, Tx.
Member since Apr 2009
9913 posts

re: 25 US Corps. that pay the highest taxes


quote:

7. Conoco Phillips - 51.5%


the gubmit stealing from me



This post was edited on 6/13 at 9:31 pm


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