House GOP “Stimulus” Bill Offers 14 Large, Low-Tax Corporations More than 0 Million in Tax Rebates Each IBM alone is slated for a .4 billion rebate check. The “stimulus” tax-cut bill just approved by the House Ways and Means Committee calls for some billion in immediate tax rebates to large profitable corporations that paid the low-rate “alternative minimum tax” over the past decade and a half because loopholes cut their regular income tax bills to little or nothing.
Low-Tax Corporations and the House GOP Stimulus Bill: CTJ Analysis
|Citizens for Tax Justice , 202-626-3780||October 16, 2001|
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The “stimulus” tax-cut bill just approved by the House Ways and Means Committee calls for some billion in immediate tax rebates to large profitable corporations that paid the low-rate “alternative minimum tax” over the past decade and a half because loopholes cut their regular income tax bills to little or nothing.
Some .3 billion of these corporate rebate checks would be made out to just 14 tax-avoiding Fortune 500 companies—whose rebates would average 0 million each. (These companies reported more than billion in pretax U.S. profits in 2000.)
|A Baker's Dozen Corporations with More than 0 Million in AMT Tax Credit Carryforwards at the End of 2000|
|Company|| AMT Rebates under the
House GOP Tax Bill,
|TXU (Texas Utilities Company)||608|
|UAL (United Airlines)||371|
|AMR (American Airlines)||184|
|Total, these 14 Companies||$ 6,305|
|Source: Corporate Annual Reports for 2000 (2001).
*As reported by DaimlerChrysler to Automotive News
Citizens for Tax Justice, Oct. 16, 2001
Under the bill, the “AMT” would be repealed (to facilitate future tax sheltering) and corporations would be entitled to an immediate rebate of any alternative minimum tax they paid since the tax was established in 1986. In contrast, under current law, a company that pays the AMT can get a refund in a later year only if its regular income tax payments exceed the AMT that year. Many profitable companies have so many loopholes that they never pay enough in regular income taxes to use these “AMT credit carryforwards.”
Original: House GOP “Stimulus” Bill Offers Over $100 Million Each To 14 Corporations