Category Archives: Taxes

TOP MILITARY CONTRACTORS’ REVENUE AND TAX BREAKS

In case you were wondering, here are the top military contractors’ revenue and their corresponding subsidies for 2014 & 2015.

Surprisingly, in both 2014 & 2015, the individual subsidies are smaller than you might think; Boeing, Northrup Grumman and Lockheed-Martin are the only ones over the billion-dollar mark, which skews the total for the rest.

When you combine subsidies and loans/bailouts, General Dynamics tops the billion-dollar mark.

If the companies are diversified, like Boeing, then the subsidies represent the company’s overall business, which is more than just the Defense industry.

TOP MILITARY CONTRACTORS   
TOP 20 DEFENSE CONTRACTORS, 2014Source: Defense Systems Source: Good Jobs First - click on amount
RankTop Defense Companies
Defense Revenue 
(Fiscal 2013)
Subsidy Value (State/Local/Federal & Loans/Bailouts) over a number of years
1Lockheed Martin Corp.$10.402 billion$1,242,055,102 & $1,401,316,037
2Northrop Grumman Corp.$5.873 billion$1,033,786,317 & $456,264,000
3Raytheon Co.$5.016 billion$287,152,891 & $1,423,379
4Boeing Co.$3.585 billion$14,077,219,164 & $64,423,416,582
5General Dynamics Corp.$3.150 billion$462,551,498 & $610,997,248
6Hewlett Packard Co.$2.593 billion $1,196,418
7 DynCorp International Llc
$2.485 billionNot available
8Leidos Inc.$2.426 billion $2,426,906 & $20,511,523
9Booz Allen Hamilton$2.126 billion$165,844
10Fluor Corp.$2.079 billion$5,347,436 & $250,000,000
11L-3 Communications Corp.$1.600 billion$41,446,787 & $17,028,270
12ManTech International Corp.$1.501 billion $23,379,633
13CACI International Inc.$1.491 billion $770,939
14Computer Sciences Corp.$1.426 billion $64,696,225
15Exelis Inc.$1.350 billion $95,416
16BAE Systems Inc.$1.255 billion$260,099,106
17Harris Corp.$1.221 billion $80,476,616 & $32,148,472
18Science Applications International Corp. (SAIC)$1.155 billion $77,111,252
19United Technologies Corp.$962 million $866,504,922 & $46,018,294
20Jacobs Engineering Group Inc.$837 million$225,677
Total$52.533 billion$82,523,836,342 ($82.52 billion)
TOP 10 U.S. DEFENSE CONTRACTORS (2015)Source: 24/7 Wall Street Source: Good Jobs First - click on amount
CompanyRevenueSubsidy Value (State/Local/Federal & Loans/Bailouts) over a number of years
Lockheed Martin Corp$40.13 billion$1,242,055,102 & $1,401,316,037
Boeing Co$29 billion $14,077,219,164 & $64,423,416,582
BAE Systems Inc.$25.45 billion $260,099,106
Raytheon Co.$22.23 billion $287,152,891 & $1,423,379
General Dynamics$18.56 billion $462,551,498 & $610,997,248
Northrop Grumman Corp$18.4 billion $1,033,786,317 & $456,264,000
Airbus Group$14.6 billion $159,235,137
United Technologies Corp$13.02 billion $866,504,922 & $46,018,294
Finmeccanica$10.56 billion $36,767,607 & $155,995,218
L-3 Communications Inc$9.81 billion $41,446,787 & $17,028,270
Total$201.76 billion$83,758,627,279 ($83.75 billion)

 

If you are interested a monthly list of DOD Funding Priorities by Christian Sorensen, you can find it at Sibel Edmonds’ site Boiling Frog Posts.  Every month, DOD contracts range in the billions of dollars.  For June 2016, the DOD spent $25,448,646,000+ on 292 individual contracts.

 


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NDP Note (Also related to this post):

HONEST CAMPAIGN:  If Elected, I Promise To Give Trillions To The Rich, Spend Trillions On War, and Cut Everything for Working People

OUR MILITARY IS MIND-BOGGLINGLY BIG

SINCE 1775, THE U.S. HAS BEEN AT WAR WITH SOMEONE SOMEWHERE FOR 213 OUT OF 242 YEARS (88% OF ITS’ EXISTENCE)

FIGHT CLUB: THE U.S. WARS CONTINUE TO INCREASE IN NUMBER EXPONENTIALLY 

U.S. is 240 Years Old and It Has Spent Over 469 Years Fighting Wars: List of U.S. Wars at Home and Abroad

Soaking the Poor, State by State

KEVIN DRUM | FEB. 3, 2012 | MOTHER JONES

You have heard, perhaps, that rich people in America are egregiously overtaxed. And the poor? They’re the lucky duckies! Why, 47 percent of Americans pay no taxes at all!

(This is not true, of course. Many poor and elderly Americans pay no federal income tax, but they pay plenty of other taxes.)

Still and all, it’s true that the federal income tax is indeed progressive. Conservatives are right about that—though it’s not as progressive as it used to be, back before top marginal rates were lowered and capital gains taxes were slashed in half. But conservatives are a little less excited to talk about other kinds of taxes. Payroll taxes aren’t progressive, for example. In fact, they’re actively regressive, with the poor and middle classes paying higher rates than the rich.

And then there are state taxes. Those include state income taxes, property taxes, sales taxes, and fees of various kinds. How progressive are state taxes?

Continue reading Soaking the Poor, State by State

10 Big Companies That Pay No Taxes (and Their Favorite Politicians)

GAVIN ARONSEN | APR. 13, 2012 | MOTHERJONES

Between 2008 and 2011, 26 major American corporations paid no net federal income taxes despite bringing in billions in profits, according to a new report (PDF) from the nonprofit research group Citizens for Tax Justice. CTJ calculates that if the companies had paid the full 35 percent corporate tax rate, they would have put more than $78 billion into government coffers.

Continue reading 10 Big Companies That Pay No Taxes (and Their Favorite Politicians)

Most firms pay no income taxes – Congress

David Goldman | August 12 2008 | CNN Money

Nearly two-thirds of U.S. companies and 68% of foreign corporations do not pay federal income taxes, according to a congressional report released Tuesday.

The Government Accountability Office (GAO) examined samples of corporate tax returns filed between 1998 and 2005. In that time period, an annual average of 1.3 million U.S. companies and 39,000 foreign companies doing business in the United States paid no income taxes – despite having a combined $2.5 trillion in revenue.

The study showed that 28% of foreign companies and 25% of U.S. corporations with more than $250 million in assets or $50 million in sales paid no federal income taxes in 2005. Those companies totaled a combined $372 billion in sales for the largest foreign companies and $1.1 trillion in revenue for the biggest U.S. companies.

The GAO report, which did not name any specific companies, said that some corporations reported zero income before deducting expenses while others said they had zero net income after deducting expenses. Either way, those companies reported no tax liability, the GAO said.

But many of the companies the report found had paid no tax were likely small businesses that pay other taxes. Generally, many small firms, because they do not have shareholders, are able to shift corporate income to individual income.

“Small businesses that are going to be liable for a lot of income tax are likely to use other tax forms so they only pay individual income taxes,” said Eric Toder, a senior fellow at the Tax Policy Center.

The study was requested by Sens. Byron Dorgan, D-N.D, and Carl Levin, D-Mich., in an attempt to determine if corporations are abusing so-called transfer prices.

Continue reading Most firms pay no income taxes – Congress

STATES JOIN THE CORPORATE WELFARE SWEEPSTAKES GIVEAWAY

Just in case you wondered why your local public schools and universities were having problems getting funded, it’s not all their fault.  Nor is it the highway departments’ fault your state roads and bridges are not getting fixed and are becoming dangerous.

And if your state has been having budget problems, there’s one primary reason: under both Democrats and Republicans, states have mirrored the federal government in handouts to profitable corporations to the tune of over $180 billion.

Taxpayer money that used to go to fund public schools, public libraries, public services, Meals-on-Wheels for seniors, and many other taxpayer-funded services, now go to profitable companies to help pad their profits.

When Republicans and Democrats talk about privatizing government functions, you can always count on this happening: you will get less and pay more.  And someone who is rich will get richer.

 

Here is a list of the subsidies and awards listed by state:

SUBSIDIES & AWARDS FROM STATES TO CORPORATIONSSUBSIDY AMOUNTSOURCE: GOOD JOBS FIRST SUBSIDY TRACKER
AK$676,803,280$676 million
AL$3,413,018,766$3.41 billion
AR$682,215,269$682 million
AZ$435,037,197$435 million
CA$2,670,247,463$2.67 billion
CO$773,824,248$773 million
CT$4,246,915,669$4.24 billion
DC$336,094,328$336 million
DE$324,280,692$324 million
FL$3,450,556,194$3.45 billion
GA$1,522,717,351$1.52 billion
HI$515,430$515 thousand
IA$2,908,329,068$2.90 billion
ID$310,702,207$310 million
IL$4,875,121,771$4.87 billion
IN$5,505,983,189$5.5 billion
KS$793,317,346$793 million
KY$7,725,418,949$7.72 billion
LA$16,659,935,692$16.65 billion
MA$1,121,502,357$1.12 billion
MD$1,020,557,805$1.02 billion
ME$681,443,625$681 million
MI$14,199,793,452$14.19 billion
MN$2,421,601,745$2.42 billion
MO$5,505,983,189$5.50 billion
MS$3,804,387,807$3.8 billion
MT$48,810,402$48 million
NC$4,494,206,385$4.49 billion
ND$110,524,376$110 million
NE$443,936,362$443 million
NH$8,382,095$8 million
NJ$8,900,756,858$8.9 billion
NM$4,067,819,794$4.06 billlion
NV$3,174,859,740$3.17 billion
NY$23,974,689,789$23.97 billion
OH$4,637,654,611$4.63 billion
OK$1,667,965,854$1.66 billion
OR$6,653,054,666$6.65 billion
PA$5,011,816,496$5.01 billion
RI$462,565,091$462 million
SC$2,533,880,431$2.52 billion
SD$123,437,018$123 million
TN$3,804,492,345$3.80 billion
TX$6,653,709,245$6.65 billion
UT$1,000,738,632$1 billion
VA$565,547,785$565 million
VT$336,895,134$336 million
WA$13,378,264,962$13.37 billion
WI$1,832,327,312$1.83 billion
WV$426,777,726$426 million
WY$1,226,569$1 million
TOTAL SUBSIDIES FROM STATES TO CORPORATIONS$180,380,643,767$180.38 billion

 

Good Jobs First Subsidy Tracker, which provides the data, also shows which profitable companies get your tax dollars simply by clicking on the state.

 

Walmart gets a lot of public money to help keep the Waltons from going hungry and so they don’t have to shop at Dollar General or Goodwill.

 

Think about that as you go to vote in November.

 


This work is licensed under a Creative Commons Attribution-Share Alike 3.0 License

 

NDP Note (Also related to this post):

FIGHT CLUB:  THE U.S. WARS CONTINUE TO INCREASE IN NUMBER EXPONENTIALLY

HONEST CAMPAIGN: If Elected, I Promise To Give Trillions To The Rich, Spend Trillions On War, And Cut Everything For Working People

MOST FIRMS PAY NO INCOME TAX – CONGRESS

10 BIG COMPANIES THAT PAY NO TAXES

SOAKING THE POOR, STATE BY STATE

OUR MILITARY IS MIND-BOGGLINGLY BIG

U.S. is 240 Years Old and It Has Spent Over 469 Years Fighting Wars: List of U.S. Wars at Home and Abroad

Pathfinder Health Innovations: Kansas Isn’t Home Anymore

Pathfinder | June 13 2016

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“I can’t, in good conscience, continue to give our tax money to a government that actively works against the needs of its citizens; a state that is systematically targeting the citizens in most need, denying them critical care and reducing their cost of life as if they’re simply a tax burden that should be ignored.” – Jeff Blackwood, CEO of Pathfinder Health Innovations

I’ve made the decision. As of July, I have decided that Pathfinder Health Innovations will be moving our corporate office from Kansas to Missouri.

dickhead-300x201There are a lot of things that factor into this decision. For one, the company has outgrown our current space. There are no seats left, and we have new employees coming on every month. The state of Missouri is also helping us with some tax incentives, but these are minor considerations.

More importantly, there’s a motivation of conscience that factors into it, too. It’s not so much that I’m moving the company to Missouri as I’m moving it away from Kansas.

Please note – this is a personal blog post, reflecting my views on the performance of the Kansas government, and specifically Governor Brownback. It should not be interpreted as the views of the company, our investors or employees other than me.

In recent years, Kansas has become a battleground for conservative ideals. Traditionally, Kansas was a moderate state, with the governorship switching every other election between Democratic and Republican governors. But the election of hyper-conservative Sam Brownback as governor heralded a new age of far right wing ideology.

It wasn’t just that Brownback was conservative; it was that he is seen as a tool of the Koch brothers and ALEC, a conservative think tank and lobbying organization. Brownback used his influence and funding to eliminate “moderate” republicans from the Kansas legislature and install his hand-picked conservative cronies.  He couldn’t do the same with the Kansas Supreme Court, which has ruled a number of the conservative legislature’s laws as unconstitutional, so Brownback’s administration decided to threaten to cut off funding to the court system and is actively pursuing legislation to impeach the Supreme Court.

Kansas has become a test center of “trickle down” economics, espoused by economist Arthur Laffer during the Reagan years. Nowhere has there been as thorough an implementation of Laffer’s policy recommendations… and nowhere has there been as dramatic a failure of government.

Continue reading Pathfinder Health Innovations: Kansas Isn’t Home Anymore

How the Kleptocrats’ $12 Trillion Heist Helps Keep Most of the World Impoverished

David Cay Johnston | May 02 2016 | The Daily Beast

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An investigative economist has crunched 45 years of official statistics to discover just how much kleptocrats have plundered from 150 mostly poor nations

For the first time we have a reliable estimate of how much money thieving dictators and others have looted from 150 mostly poor nations and hidden offshore: $12.1 trillion.

That huge figure equals a nickel on each dollar of global wealth and yet it excludes the wealthiest regions of the planet: America, Canada, Europe, Japan, Australia, and New Zealand.

That so much money is missing from these poorer nations explains why vast numbers of people live in abject poverty even in countries where economic activity per capita is above the world average. In Equatorial Guinea, for example, the national economy’s output per person comes to 60 cents for each dollar Americans enjoy, measured using what economists call purchasing power equivalents, yet living standards remain abysmal.

The $12.1 trillion estimate—which amounts to two-thirds of America’s annual GDP being taken out of the economies of much poorer nations—is for flight wealth built up since 1970.

Continue reading How the Kleptocrats’ $12 Trillion Heist Helps Keep Most of the World Impoverished

Democrats and Republicans Are Quietly Planning a Corporate Giveaway—to the Tune of $400 Billion

By William Greider, published March 04, 2016 in The Nation

Why isn’t anyone talking about it?
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A protest against corporate greed in Albany, New York in 2012 (AP Photo / Mike Groll)

Young people are the good news of 2016. They see the stressful realities of American life more clearly than their elders and are rallying around the straight talk of Bernie Sanders. Meanwhile, the big hitters back in Washington politics are working on an ugly surprise not just for the kids but for all of us—another monster tax break for US multinational corporations.

The bad news is that key leaders of the Democratic Party—including the president—are getting on board with Republicans, despite some talk about confronting income inequality. Influential Democrats intend to negotiate with Republican counterparts on the size and terms of post-facto tax “forgiveness” for America’s globalized companies. This is real money they’re talking about—a giveaway of hundreds of billions.

Why haven’t voters heard about this from candidates? Because Republicans and Democrats both know it would make angry voters even angrier.

Continue reading Democrats and Republicans Are Quietly Planning a Corporate Giveaway—to the Tune of $400 Billion

The $10 Trillion US Tax Giveaway – $10 Trillion More Proposed

by Jack Rasmus, published February 02, 2016 on Counterpunch

From 2001 to 2016 US politicians have cut taxes on corporations and wealthy investors by no less than US$10 trillion. Another US$10 is coming.

Proposals for more tax cuts now pending in Congress – plus proposals supported by Trump, Cruz, other Republican presidential candidates – will add another US$10 trillion in tax cuts. And, as from 2001 to 2016, the latest proposals will once again benefit mostly US big banks, big corporations, and the wealthiest investors – i.e. the 1 percent and, even more so, the 0.1 percent and 0.01 percent.

Bill Clinton Opens the Door: 1997-1998

It is little known, but the trend toward massive investor and corporate tax cutting in recent decades began with Bill Clinton and his 1997-98 tax cut legislation. The 1997 Act cut taxes by US$400 billion. The wealthiest 20 percent households received 75 percent of the tax cuts or US$300 billion. The Clinton cuts reduced capital gains and estate taxes, cut gift taxes and the corporate alternative minimum tax, and opened up corporate tax loopholes while limiting the IRS ability to investigate wealthy tax evasion. Forty-eight million of the lowest income households got no cuts or saw their taxes actually increased. Another 48 million households got tax cuts averaging US$300. Capital gains taxes were cut by US$200 billion benefiting the wealthiest 1 percent households (1.2 million) who received an average cut of US$16,187, according to the Center for Tax Justice. A follow up tax act in 1998 further restricted the IRS from investigating tax fraud by the wealthy and corporations, while expanding capital gains tax provisions still further. The modern era of tax cutting for the wealthy and their corporations thus begins with Bill Clinton.

George W. Bush ‘The Great Benefactor’: 2001-2008

George Bush wasted no time in blowing open the door unlocked by Clinton. In a succession of annual tax cuts starting in 2001, personal income taxes under Bush were reduced by US$3.3 trillion, according to the independent research source, ‘Tax Notes.’

Continue reading The $10 Trillion US Tax Giveaway – $10 Trillion More Proposed

Inside the Secretive World of Tax-Avoidance Experts

by Brooke Harrington, published October 26, 2015 at The Atlantic

A sociologist realized that if she were ever going to understand global inequality she would have to become one of the people who helps create it. So she trained to become a wealth manager to the ultra-rich.

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Sergey Nivens / Shutterstock / Fotolia / Paul Spella / The Atlantic

Shakespeare said that all the world’s a stage, but the sociologist Erving Goffman added that most of the interesting stuff lies behind the scenes, in what he called the “backstage” areas of everyday life.

Having spent the past eight years doing research on the international wealth-management profession, I have to agree with Goffman: The most revealing information comes from the moments when people stop performing and go off-script. Like the time one of the wealth managers I interviewed in the British Virgin Islands lost his composure and threatened to have me thrown out of the country. His ire arose from an unexpected quarter:  He took offense to my use of the term “socio-economic inequality” in the two scholarly articles I had published on the profession. I thought the articles were typically academic, which is to say, the opposite of sensationalizing and of little interest to anyone outside my field.  But my suggestion that wealth managers might be connected to inequality in any way seemed alarmingly radical to this gentleman.

I was lucky that he merely threatened me. A journalist from Newsweek actually was deported from a different tax-haven island (Jersey) for her reporting there, and was banned from re-entering the island, or any part of the U.K., for nearly two years. Even though her story was unrelated to the financial-services industry, it was expected to bring negative publicity to the island, threatening its reputation as a place to do business. The message was therefore quashed by banishment of the messenger. The wealth-management industry does not mess around.

Wealth management is a profession on the defensive. Although many people have never heard of it, it is well known to both state revenue authorities and international agencies seeking to impose the rule of law on high-net-worth individuals. Those individuals—including the 103,000 people classified as “ultra-high-net-worth” based on having $30 million or more in investable assets—pay wealth-management professionals hefty fees to help them avoid taxes, debts, legal judgments, and other obligations the rest of the world considers part of everyday life. The general public doesn’t hear much about these professionals, since there are only a few of them worldwide (just under 20,000 belong to the main professional society) and they strive to keep a low profile, both for themselves and their clients.

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But they are very much on the radar of regulatory agencies, due to the central role wealth management plays in tax avoidance. Media coverage of the 2012 presidential campaign of Mitt Romney noted that his $250 million personal fortune was spread out through a network of offshore trusts and bank accounts, lowering his effective income-tax rate to just under 15 percent. Few outlets, however, noted the professional interventions that made that happen: Mitt Romney employs at least one wealth manager to create and maintain those offshore shelters.

Continue reading Inside the Secretive World of Tax-Avoidance Experts