As countless small business owners wonder what the new year will bring to their profit margins- a year already colored by the looming specters of the fiscal cliff and healthcare reform- it seems several big businesses are sitting quite cozy, indeed. In September of this year, a congressional report put a spotlight on maneuverings that allowed two tech giants, Microsoft and Hewllet-Packard, to avoid paying taxes on billions of dollars in offshore profits.
These companies are certainly not alone. The corporate annuls are filled to the brim with sophisticated tax dodging that often goes hand-in-hand with enormous outlays of money dedicated to political lobbying.
How bad is it?
Here are stats on ten of the most profitable companies in the US: how much they made last year; how much they actually paid in US taxes (keep in mind that the official corporate tax rate is 35%); how much they spent on political lobbying.
Judge for yourself…
1. Exxon Mobil
Pre-tax earnings 2011: $73.3 Billion
Actual Federal US Taxes Paid: $1.5 Billion (2%)
Total Lobbying Expenditures: $9,870,000
2. Chevron
Pre-tax earnings 2011: $47.6 Billion
Actual Federal US Taxes Paid: $1.9 Billion (4%)
Total Lobbying Expenditures: $7,080,000
3. Apple
Pre-tax earnings: $34.2 Billion
Actual Federal US Taxes Paid: $3.9 Billion (11%)
Total Lobbying Expenditures: $1,430,000
4. Microsoft
Pre-tax earnings: $28.1 Billion
Actual Federal US Taxes Paid: $3.1 Billion (11%)
Total Lobbying Expenditures: $5,656,000
5. JPMorgan Chase
Pre-tax earnings: $26.7 Billion
Actual Federal US Taxes Paid:$3.7 Billion (14%)
Total Lobbying Expenditures: $4,900,000
6. Wal-Mart
Pre-tax earnings: $24.4 Billion
Actual Federal US Taxes Paid: $4.6 Billion (19%)
Total Lobbying Expenditures: $4,650,000
7. Wells Fargo
Pre-tax earnings: $23.7 Billion
Actual Federal US Taxes Paid: $3.4 Billion (14%)
Total Lobbying Expenditures: $5,290,000
8. ConocoPhillips
Pre-tax earnings: $23.0 Billion
Actual Federal US Taxes Paid: $1.9 Billion (8%)
Total Lobbying Expenditures: $2,359,000
9. IBM
Pre-tax earnings: $21.0 Billion
Actual Federal US Taxes Paid: $0.268 Billion (1%)
Total Lobbying Expenditures: $3,560,000
10. General Electric
Pre-tax earnings: $20.1 Billion
Actual Federal US Taxes Paid: $1.0 Billion (5%)
Total Lobbying Expenditures: $15,550,000
Sources: