Which Companies Paid The Most Income Tax In 2014

Zero Hedge ^ | 04/17/2015 | Tyler Durden

[SeekAndFind]

Apple's market capitalization of $730 billion may now be more than double that of Exxon Mobil, but when it comes to taxes paid to the US government, it's no contest: the company with record profitability that so many progressive hipsters adore and for whose products they line up with annual regularity is billions of dollars below its "fair" contribution to the US Treasury. Ironically, it is eclipsed by that other company that so many progressives love to hate: Exxon Mobil, which paid $4 billion more in tax than Apple, yet whose valuation has been cut by 15% over the past year as a result of the collapse in oil prices.

 

What is also notable, is that using FactSet data, even as companies remitted a record amount of taxes, some $775 billion in 2014, this was equivalent to a 28.1% tax rate: the lowest tax in the past 5 years, as well as in recent history.

Here are some more observations on which S&P company paid what in taxes in the past year.

What Was the Average Tax Bill for An S&P 500 Company This Past Year?

 

This past Wednesday (April 15) marked the deadline for Americans to file their federal income taxes with the IRS. In terms of the S&P 500, what did the average company in the index pay in income taxes over the past year? How did this amount compare to recent years?

 

Looking at income taxes paid by S&P 500 companies with a fiscal year ending in the past 12 months (Mach 2014 through February 2015), the average amount of annual income taxes paid was $866.1 million. This amount is above the average from one-year ago ($706.1 million) and above the average of the past five years ($654 million). Companies that reported negative values for income taxes paid were excluded from these averages.

 

At the company level, Exxon Mobil paid the highest amount of income taxes of all S&P 500 companies over the past year (fiscal year ending in December 2014) at just over $18 billion. Over the past five years, Exxon Mobil has paid the largest amount of income taxes on average at $25.2 billion.

 

Looking at the tax rate (which is defined for this analysis as taxes paid divided by pretax income) for S&P 500 companies with a fiscal year ending in the past 12 months (March 2014 through February 2015), the average tax rate was 28.1%. This amount is slightly below the percentage from one-year ago (28.7%) and slightly below the average of the past five years (also 28.7%). Companies with tax rates that were either below 0% or above 100% were excluded from these averages.

 

Thus, it appears that while the average amount of money S&P 500 companies have paid in income taxes has increased over the past five years (as the average amount of earnings have also increased over this period), the average tax rate for S&P 500 companies has remained relatively consistent over this period.

Actually, it has declined.

Which means that in a world in which the marginal capacity of central banks to monetize debt and thus fund various government through outright monetization of deficits, slows down as they run out of bonds to purchase, it will be up to these said government to politely approach the above companies, and all others, and remind them that while everyone enjoyed the past 7 years of record surging stock prices, the time of soaring corporate income tax is coming.

Which is also why corporate insiders and shareholders are withdrawing funds at a record pace today in the form of buybacks and dividends: because they all see the writing on the wall - it is now only a matter of time the government comes knocking and demanding its deferred pound of flesh.

[catfish1957]

Hey bud, I have a few APPL products that I like, but this left leaning company had more than twice the market cap of XOM, but pays 25% less. Nice have a company and an industry protected by the left leaning dims in this country.

[Star Traveler]

If they’re paying less than the law requires, they should pay according to the law.

BUT ... what we believe here on Free Republic is REDUCING TAXES so if we’re talking about changing the law, we should change the law so that these companies pay LESS TAXES, not more taxes!

It’s our philosophy here on Free Republic that the existing taxes are TOO HIGH and that applies to companies and individuals. So that means Apple is PAYING TOO MUCH TAXES, along with those other companies paying too much!

We don’t take the LIBERAL approach here and say, “You should pay more taxes!” ... LOL ..

[Star Traveler]

I should also ask here, since you seem to be indicating this ... are you saying that the market capitalization of a company should be taxed every year ... because that’s what it sounds like.

I do believe that their net income should be taxed, but that those taxes right now for companies are TOO HIGH and should be REDUCED DRASTICALLY by law.

So, I should ask here, are you for DRASTICALLY REDUCING the taxes on corporations?

Here’s a brief article on market capitalization and net income.

Does Net Income Increase With Market Capitalization?
http://smallbusiness.chron.com/net-income-increase-market-capitalization-35843.html

[SunkenCiv]

here's some good news for all you LINOs (Libertarians in Name Only) out there:

• [Vermont Socialist Bernie] Sanders blasts U.S Corporations for Dodging Taxes

Thanks Swordmaker.

[adorno]

You sound like a “follower”, like the people in that TV show, “The Following”?

Yuck, man, you need to get a life.

There is nothing special about Apple products, and whatever you or anyone needs, can be found in other brands, and just as good quality. You’ve been brainwashed by that Apple religion.

[Star Traveler]

Obviously, there is something to it, considering there are 700 FReepers who are part of the Apple ping list, on Free Republic ... :-) ...

And there are a whole lot of people buying iPhones in the USA. Apple is the Number One manufacturer of smartphones in this country by a significant margin. That doesn’t happen unless a company is doing what it’s supposed to for its customers.

SO ... all you’re saying is that you don’t like the products ... but ... the fact that you don’t like the products doesn’t mean that there isn’t a huge number of people who do like the products very much ... including FReepers and other conservatives.

[Kickass Conservative]

What this doesn’t tell us is that Exxon-Mobil also paves the way for Local, State and the Federal Government to collect Trillions of Dollars in Sales and Transportation Taxes.

Every Gallon of Diesel and Gasoline sold generates more Net Profit for the Government than the Company that actually Produces the product.

For Gasoline priced at $3.00 Per Gallon in CA for instance, the End User (Consumer) is paying approximately $.85 Per Gallon in Federal / Federal Excise Taxes and Local / State Sales Tax, not including the new unseen Cap and Trade Tax paid by Fuel Distributors.

The more Economical the Cars get, the more impetus for the Politicos to raise Fuel Taxes to keep their pockets full.

[adorno]

Nope! You’re assuming too much.

Never said I didn’t like the products, and never said I didn’t think they were good quality products, and never said that people shouldn’t like them and purchase them.

What I am saying is that, with Apple, it’s like a religion, and the fanaticism is beyond just liking a product. When people purchase a product which they don’t really need, or that isn’t really that much of an improvement over a previous version of the same product, then, it’s beyond needing and wanting a product. When what people already have is enough to get them through the next few years with not too many problems, and they decide that they ‘need’ to get the latest that Apple puts out, then, it’s about a religion. When people get on eBay and on Amazon to sell their perfectly good iPhone, just so they can raise enough cash to get the next iPhone that comes with a tiny increment of an improvement, then, it’s about a religion.

If it’s not about a religion, it’s about an obsession or a compulsion.

I think that Apple produces are good quality products, and those products are things that actually meet a need, just like all the other smartphone brands meed the same need. But, I just can’t understand the need to upgrade as soon as a marginally improved version comes out. It’s about the need that certain people feel that tells thme that, they won’t be left behind and they must get the latest-and-greatest, when they don’t really need to or have to. But, Apple counts on that type of mentality to keep them flying above the clouds, and their loyal “followers” are immediately available to hand Apple their money.

It’s pure nuttiness.

BTW, in my family, there are 3 iPhones, but, none of those owners felt the need to get the iPhone 6 or 6+ when it came out, and in fact, they feel quite content in staying with their iPhone 4 and iPhone 5,for as long as Apple supports them. No Apple religion in my family, but, we go with what does the job, and so, we have Apple devices, and LG-Android devices, and Samsung devices, and Windows Phone devices. None of us own any Macs, because, our needs were met quite well with the much lesser cost devices from Windows PCs from various OEMs.

We don’t worship any brand or model, and we don’t worship any company. We are practical and frugal, while making sure that we get quality products without having to pay through the nose. Again, not religion in our household and immediate family.

[catfish1957]

Your continued support for this left wing company says a lot about your views. Keep digging that hole buddy.

[Star Traveler]

What hole would I be digging for advocating a drastic reduction in these exorbitant taxes that corporations have to pay?

You’re the one who seems to be advocating a LIBERAL position of getting corporations to pay MORE TAXES. I hope you do know this is NOT the sentiment of Free Republic and taxes!

[Star Traveler]

You’re hilarious in that you set yourself up to be the one who sets a “standard” for what consist of a “religion” (as you put it, which definition serves to actually denigrate true religion, actually) ... in that if people don’t act in the manner you say should be done, in how often they should buy a product, using your definition of “need” ... then ... it is a “religion”! ... LOL ...

You sound like your relatives emigrated from the former Soviet Union and had some family members with the last name of “Stalin” ... :-) ...

In America ... you see ... we all have the ABSOLUTE FREEDOM to buy whatever we want, in our capitalistic and free market system ... as many times as we want, as much as we want, and to do with or without any consideration of need, or to consider it in any way we see fit, according to OUR OWN DETERMINATION of what that should be and COMPLETELY IGNORE any one else’s opinion of what that should be.

We have the freedom to ABSOLUTELY BURN OUR OWN MONEY if we should so “feel the need to do so”!

AND THEN in our capitalistic free market system, companies that CATER TO the mass market and to whatever mood they are in, even if that mass market wants to “burn their own money” for no reason at all ... if that company pleases that mass market to the extent that the company becomes FILTHY RICH ... that company is a PERFECT SUCCESS in doing so and in becoming WILDLY SUCCESSFUL for catering to those customers. That’s exactly what a company is supposed to do ... which is to become FILTHY RICH by catering to the whims and wishes and desires of the mass market.

That company is called a ROARING SUCCESS ... and not a company that follows your very narrow-minded and “Stalinesque” philosophy!

[adorno]

Yup! In America, we all do have the freedom to purchase whatever the heck we wish. But, there are people who are so loyal to a name or brand, that they take it to worship level, or to a religious state.

I’m pretty sure you recognize yourself as part of the cult of Apple, and you demonstrate it within each and every discussion that even mentions Apple or iPhone or Macs or OSX or iOS or anything at all where Apple is involved in any way. You’re demonstrating it quite well in this discussion. Who else but a cult follower would be able to recite the praises of Apple? You know each and every product from Apple, and every version of that product that ever was.

Still, no matter how many products or services Apple has, it’s still a one-trick pony with iPHones leading the way, and Macs a very distant second. Once iPHones start becoming just another smartphone, Apple will become just another hardware/software company, at the level of HP or Dell or Toshiba.

And, every post you make does demonstrate that you are part of “The Following” of Apple. Don’t look over your shoulders, because, Kevin Bacon might be getting close.

[Star Traveler]

I like certain mayonnaise, too. I only get the one kind that is the best. I get a particular pair of sports socks, because I find they are the best out there. I don’t get other kinds. I drink Coca-Cola and not Pepsi. I’ve never liked Pepsi and I’ve always gotten Coca-Cola. I like Reagan’s Jelly Bellys and not other kinds. There is a particular barber that I go to, because he does an excellent job, the best I’ve ever seen. I get Top Tier gasoline, because it’s tested to meet manufacturer’s standards for keeping their engines running better and cleaner, and I get it most of the time at QuikTrip ... which is the best gas station/convenience store I’ve ever seen in the entire country. I get a particular kind of cheddar cheese, because it’s aged just right and has excellent flavor. I get a particular cell phone and computer and tablet, because they’re excellent products and the best around with the best customer service I’ve ever found.

I must be REALLY RELIGIOUS then ... LOL ... because I know what products are the best, meet my needs exactly as I see them for myself and I’ll get them over and over again!

Now ... that’s the beauty of our capitalistic free market system in that people can get JUNK if they want to buy it, or the best quality product if they want. And the companies who meet their customers’ needs in the mass market make a PILE OF MONEY just like Apple makes ... the rewards of being so WILDLY SUCCESSFUL ... :-) ...

I’m a “religious follower” ... according to your definition ... of just about every product or service I buy because I buy them according to what I see as the best, and I really like them, and I do repeat business ... LOL ...

Apparently that must be quite an UN-AMERICAN thing to do these days ... or at least it is in the minds of liberals ... :-) ...

[adorno]

Nice try at deflection. That you like other products, and that you have preferences, is not the point.

The point is that, you (and that other dude), are cult-like in your love for Apple and its products. Apple can depend on people like you to keep them flying above the clouds, even with their minimally updated products.

You would buy the iPhone 7 for no reason other than, it was just an iPhone 6 with no changes other than, it came with a new color or with a slight change in he Apple logo (2 bites instead of one).

Like I said, it’s all about the cult-following. You people are very predictable, and you and that other dude are constantly on the defense for Apple, if anyone dare to even look at an Apple product in the wrong way.

Like I said, look out for Kevin Bacon. He doesn’t like “followers”. Followers are deranged and dangerous. ;)

[Swordmaker]

Apple paid $14b but has over $180b in cash overseas.

Not true. Apple has about $120 Billion overseas and about $60 Billion in the US. Never-the-less, that fact is irrelevant. All of those funds, no matter where they are located, have had the relevant income taxes paid on them in the jurisdictions in which the income was earned. Sorry that you don't like following the law as written.

[Swordmaker]

Left wing leaning APPL gets a pass. Imagine that!!!!

Not exactly. Apple was subpoenaed before the US Senate Permanent Subcommittee on Investigations when the Senate Democrats claimed Apple was paying zero US Income Taxes. . . which turned out to be totally untrue. You can see this testimony on

C-Span Senate Committee Record with Testimony of CEO Tim Cook — 2013.

Plan on spending about three hours watching it.

[Swordmaker]

There is nothing special about Apple products, and whatever you or anyone needs, can be found in other brands, and just as good quality. You’ve been brainwashed by that Apple religion.

There speaks a mono-lingual ignorati trying to tell those of us bi-lingual people that what we know about the second language being better than his pig-latin is wrong when we've spoken both fluently. Tsk-tsk. It has nothing to do with anything like a religion, except perhaps from your end.

What you fail to understand Adorno is that while some makers of PC and Android hard ware may equal Apple's build quality, they do not have OS X or iOS on their equipment nor will they claim responsibility for the entire product in servicing it. Those things make all the difference and DOES make it special. The vast majority of Apple users CAME out of your world and have made the conscious decision to make the move away from the bad experience to the better experience. You just go on believing your Flavor-aide. We are NOT going to drink it again. . . it left a foul taste in our mouths the last time.

[Swordmaker]

If it’s not about a religion, it’s about an obsession or a compulsion.

The only people I see on here are people like you who have a compulsion to post negative commentary like this one about Apple users. . . claiming cult like religion or psychological pathology. Most of us do not upgrade at "every upgrade" as you erroneously think. I skip every other upgrade of iPhone, waiting out the contract, and every iPhone user I know does the same thing. YOU are assuming facts simply not in evidence. We sell our old iPhones because they have high resale value not present for other phones even three and four years later that most often will pay the price of upgrading on contract. Try doing that with a two, three, or four year old Android phone. You can't. You call that pathological.

My main Mac is now seven years old and my MacBook Air is four years old. Where is this exchange for every new model there? The fact is, Mr. Psychologist, what you claim is happening, does not happen. It is in your deluded mind because there are that many pleased Apple product users at each product upgrade whose contracts are due for renewal. . . and choose to upgrade. There is always sufficient reason to upgrade. You claim your iPhone 4 and 5 are sufficient. I upgraded from my previous iPhone 5 because I intend to use ApplePay. . . and I do, frequently. I sold my two year old 16 GB iPhone 5—not an iPhone 5S, a generation I skipped—for enough to pay for the upgrade to a 64GB iPhone 6 and put $150 in my pocket. Again, try that with any Android phone of ANY vintage. Your premise fails for bad assumptions.

The facts are that Android phone users upgrade their phones more frequently than do Apple iPhone users. . . because they are cheaper and in many instances, simply don't outlast their contracts.

Your assumption that ANYONE is worshipping any company gets to your delusions. . . and ignorance of what Apple products are really like to use.

[Swordmaker]

In America ... you see ... we all have the ABSOLUTE FREEDOM to buy whatever we want, in our capitalistic and free market system ... as many times as we want, as much as we want, and to do with or without any consideration of need, or to consider it in any way we see fit, according to OUR OWN DETERMINATION of what that should be and COMPLETELY IGNORE any one else’s opinion of what that should be.

Well with the exception of medical care and medical insurance. Obambi and his fellow travelers saw to that. Perhaps with adorno's help he can have Obamaphonecare. . . It will save every American family $2500 a year on their phone plan, and if you like your phone plan you can keep your phone plan, and if you like your phone, you can keep your phone. Where have I heard something like that before?

[Star Traveler]

It works exactly the same way ... :-) ...