Low-Tax Corporations and the House GOP Stimulus Bill: CTJ Analysis
House GOP “Stimulus” Bill Offers 14 Large, Low-Tax Corporations More than 0 Million in Tax Rebates Each
|Citizens for Tax Justice , 202-626-3780 ||October 16, 2001|
IBM alone is slated for a .4 billion rebate check
Click here to see this analysis in PDF format.
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
|| AMT Rebates under the
House GOP Tax Bill,
|| $ 1,424
| General Motors
| General Electric
| TXU (Texas Utilities Company)
|UAL (United Airlines)
| Phillips Petroleum
| AMR (American Airlines)
| IMC Global
| CMS Energy
| 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
- Topping the list is IBM, slated to get a .4 billion rebate check. General Motors is
next at 3 million, followed by General Electric at 1 million, TXU (Texas Utilities)
at 8 million, DaimlerChrysler at 0 million, and ChevronTexaco at 2 million.
- Of these 14 low-tax companies that would get more than 0 million each under
the GOP-backed bill, five are in the energy business. Two are in the airline industry,
which is receiving billion in grants and loans under already passed legislation.
- The bill’s proposed total of billion
in instant rebates for profitable tax-avoiding corporations is almost twice as
big as the .7 billion in added individual rebates that the tax committee decided
to provide to 37 million, mostly low-income families and singles whose 2000
earnings were too low to qualify for the
previous round of personal tax rebates.
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repealed (to facilitate future tax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
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Who is IMC Global?
Is this a joke or an actual corporation?