Corporate Deadbeats?

WSRL.ORG / Financial Awareness - April 2010 - Revised April, 2010 - Page-2 Corporate Tax Deadbeats?

Sales: $401 billion
Pretax income: $20.9 billion
Income taxes: $7.1 billion
Tax rate: 34.2%
$1.2 billion of Wal-Mart Stores' taxes are international.

Sales: $311 billion
Pretax income: $35 billion
Income taxes: $15 billion
Tax rate: 47%
None of ExxonMobil's income taxes were paid in the U.S. In 2008 the company's income tax bill was $36 billion.

Sales: $172 billion
Pretax income: $18.5 billion
Income taxes: $8 billion
Tax rate: 43%
Chevron paid $19 billion income tax in 2008. Of this year's taxes, just $200 million were paid in the U.S.

Sales: $157 billion
Pretax income: $10.3 billion
Income taxes: (-$1.1 billion)
Tax rate: N/A
GE's financial services unit, GE Capital, keeps the overall tax bill so low. Over the last two years, GE Capital has displayed an uncanny ability to lose lots of money in the U.S. and make lots of money overseas, where tax rates are lower.

Sales: $152 billion
Pretax income: $10 billion
Income taxes: $5 billion
Tax rate: 51%
ConocoPhillips paid $13 billion in taxes in 2008.

Sales: $123 billion
Pretax income: $19 billion
Income taxes: $6.2 billion
Tax rate: 32.4%
AT&T's executive officers are eligible to bill the company $14,000 a year for their own income tax preparations.

Sales: $120 billion
Pretax income: $4.4 billion
Income taxes: (-$1.9 billion)
Tax rate: N/A
How did Bank of America not pay any taxes on $4.4 billion in income? Because of deductions like $860 million in tax-exempt income, $670 million in low-income housing credits and a $600 million loss on shares of foreign subsidiaries. With a provision for credit losses of $49 billion, Bank of America probably won't be paying taxes for a long time.

Sales: $118 billion
Pretax income: $3 billion
Income taxes: $69 million
Tax rate: 2.3%
Ford's tax rate is so low because of past years' losses from U.S. operations.

Sales: $115 billion
Pretax income: $9.4 billion
Income taxes: $1.75 billion
Tax rate: 18.6%
HP's low tax rate is due to lower tax rates in foreign countries. The company says in its annual report that President Obama's proposals to end tax deferrals on international operations would mean a big tax hike.

Sales: $112 billion
Pretax income: $11.5 billion
Income taxes: $3.5 billion
Tax rate: 30%

Sales: $100 billion
Pretax income: $16 billion
Income taxes: $4.4 billion
Tax rate: 27.5%
Chief Executive Jamie Dimon has spoken out against an Obama proposal to levy a special tax on banks to recoup bailout costs. "Using tax policy to punish people is a bad idea," said Dimon. "All businesses tend to pass costs on to customers."

Sales: $108 billion
Pretax income: $11.6 billion
Income taxes: $1.2 billion
Tax rate: 10.5%
Verizon's low tax rate is due to its $42 billion wireless joint venture with Vodafone, which draws off much of Verizon's income.

Sales: $107 billion
Pretax income: $1.1 billion
Income taxes: $241 million
Tax rate: 22.7%

Sales: $100 billion
Pretax income: $1.7 billion
Income taxes: $500 million
Tax rate: 31.4%

Sales: $99 billion
Pretax income: $5.9 billion
Income taxes: $2.2 billion
Tax rate: 37.3%
State taxes added on top of the 35% federal rate (and no international operations) give CVS its high rate.

Sales: $96 billion
Pretax income: $18 billion
Income taxes: $4.7 billion
Tax rate: 25%
Big Blue pays 49% of its income taxes overseas. In Japan it is appealing a $330 million tax assessment that followed an investigation into alleged tax evasion.

Sales: $89 billion
Pretax income: $18 billion
Income taxes: $5.3 billion
Tax rate: 30.3%
Wells Fargo has booked a $25 billion allowance for loan losses, but that won't help reduce taxes until those losses are realized.

Sales: $87 billion
Pretax income: $5.8 billion
Income taxes: $2 billion
Tax rate: 34.2%

Sales: $80 billion
Pretax income: ($7.8 billion)
Income taxes: ($6.7 billion)
Tax rate: N/A
With $17.5 billion in future tax deductions and credits on the books, and a $39 billion provision for loan losses, Citi has many tax-free years ahead of it.

Sales: $79 billion
Pretax income: $15.3 billion
Income taxes: $4 billion
Tax rate: 26.3%
More than half of P&G's business is overseas.

Sales: $77 billion
Pretax income: $1.7 billion (excluding $1.1 billion goodwill impairment charge)
Income taxes: $530 million
Tax rate: 35.8%
Domestic-only retailers like Kroger have some of the highest tax rates among big companies because they have no lower-taxed overseas income to bring rates down.

Sales: $72 billion
Pretax income: $824 million
Income taxes: $312 million
Tax rate: 38%

Sales: $71 billion
Pretax income: $1.7 billion
Income taxes: $630 million
Tax rate: 36.7%
Of the companies in this list, Costco can be proud of having the most straightforward (and refreshing) financial statements.

Sales: $68 billion
Pretax income: $1.7 billion
Income taxes: $400 million
Tax rate: 23%
Boeing's lower tax rate is mostly the result of big research and development tax credits.

SNo. 25: Valero Sales: $68 billion
Pretax income: (-$450 million)
Income taxes: (-$100 million)
Tax rate: N/A
A gasoline glut means no profits or taxes for Valero.