Low-Tax Corporations and the House GOP Stimulus Bill: CTJ Analysis\r\n\r\n\r\n\r\n \r\n\r\n<\/p>
| Citizens for Tax Justice , 202-626-3780 <\/td> \t | October 16, 2001<\/td><\/table>\r\nHouse GOP “Stimulus” Bill Offers 14 Large, Low-Tax Corporations More than $100 Million in Tax Rebates Each
IBM alone is slated for a $1.4 billion rebate check<\/b>\r\n\r\nClick here to see this analysis in PDF format.
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\r\nThe “stimulus” tax-cut bill just approved by the House Ways and Means Committee calls for some $25 billion in immediate tax rebates to large profitable corporations that paid\r\nthe low-rate “alternative minimum tax” over the past decade and a half because\r\nloopholes cut their regular income tax bills to little or nothing.<\/p>\r\n Some $6.3 billion of these corporate rebate checks would be made out to just 14 tax-avoiding Fortune 500 companies—whose rebates would average $450 million each.\r\n(These companies reported more than $33 billion in pretax U.S. profits in 2000.) <\/p>\r\n\r\n \r\n\r\n A Baker's Dozen Corporations with More than $100 Million in AMT Tax Credit Carryforwards at the End of 2000<\/b> <\/td>\r\n<\/tr>\r\n\r\n| Company<\/b> <\/td>\r\n | AMT Rebates under the
House GOP Tax Bill,
$-millions<\/b> <\/td>\r\n<\/tr>\r\n\r\n| IBM <\/td>\r\n | $ 1,424 <\/td>\r\n\r\n<\/tr>\r\n | \r\n| General Motors <\/td>\r\n | 833 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| General Electric <\/td>\r\n | 671 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| TXU (Texas Utilities Company) <\/td>\r\n | 608 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| DaimlerChrysler*<\/td>\r\n | 600 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| ChevronTexaco <\/td>\r\n | 572 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| UAL (United Airlines) <\/td>\r\n | 371 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| Enron <\/td>\r\n | 254 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| Phillips Petroleum <\/td>\r\n | 241 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| AMR (American Airlines) <\/td>\r\n | 184 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| IMC Global <\/td>\r\n | 155 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| Comdisco <\/td>\r\n | 144 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| CMS Energy <\/td>\r\n | 136 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| Westvaco <\/td>\r\n | 112 <\/td>\r\n \r\n<\/tr>\r\n | \r\n| Total, these 14 Companies<\/b> <\/td>\r\n | $ 6,305 <\/b> <\/td>\r\n<\/tr>\r\n\r\nSource:<\/b> Corporate Annual Reports for 2000 (2001).
*As reported by DaimlerChrysler to Automotive News<\/i>
Citizens for Tax Justice<\/b>, Oct. 16, 2001 <\/td>\r\n \r\n<\/tr>\r\n<\/table>\r\n- Topping the list is IBM, slated to get a $1.4 billion rebate check. General Motors is\r\nnext at $833 million, followed by General Electric at $671 million, TXU (Texas Utilities)\r\nat $608 million, DaimlerChrysler at $600 million, and ChevronTexaco at $572 million.\r\n<\/li>
- Of these 14 low-tax companies that would get more than $100 million each under\r\nthe GOP-backed bill, five are in the energy business. Two are in the airline industry,\r\nwhich is receiving $15 billion in grants and loans under already passed legislation. \r\n\r\n<\/li>
- The bill’s proposed total of $25 billion\r\nin instant rebates for profitable tax-avoiding corporations is almost twice as\r\nbig as the $13.7 billion in added individual rebates that the tax committee decided\r\nto provide to 37 million, mostly low-income families and singles whose 2000\r\nearnings were too low to qualify for the\r\nprevious round of personal tax rebates.<\/li><\/ul>\r\n
Under the bill, the “AMT” would be\r\nrepealed (to facilitate future tax\r\nsheltering) and corporations would be\r\nentitled to an immediate rebate of any\r\nalternative minimum tax they paid since\r\nthe tax was established in 1986. In\r\ncontrast, under current law, a company\r\nthat pays the AMT can get a refund in a\r\nlater year only if its regular income tax\r\npayments exceed the AMT that year.\r\nMany profitable companies have so many\r\nloopholes that they never pay enough in\r\nregular income taxes to use these “AMT\r\ncredit carryforwards.”<\/p>\r\n
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\r\n\r\n\r\n\r\n\n","contact":"","link":"http:\/\/www.ctj.org\/html\/amtdozen.htm","address":"","phone":"","parent_id":0,"mime_type":"text\/html","summary":"House GOP \u201cStimulus\u201d Bill Offers 14 Large, Low-Tax Corporations More than $100 Million in Tax Rebates Each\r\nIBM alone is slated for a $1.4 billion rebate check. The \u201cstimulus\u201d tax-cut bill just approved by the House Ways and Means Committee calls for some $25 billion in immediate tax rebates to large profitable corporations that paid the low-rate \u201calternative minimum tax\u201d over the past decade and a half because loopholes cut their regular income tax bills to little or nothing.","numcomment":1,"fileurl":"\/uploads\/2001\/10\/amtdozen.htm","filesize":"7.8 kibibytes","article_url":"\/news\/2001\/10\/12312.php"},"attachments":[],"comments":[{"id":12318,"heading":"interesting, one question","article":"Who is IMC Global?\r\nIs this a joke or an actual corporation?\r\n\r\nI laughed","author":"air","parent_id":12312,"mime_type":"text\/plain","created":"2001-10-25 23:01:25","modified":"2001-10-26 00:00:02","fileurl":""}]}
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