According to a report today in the Washington Post, most companies in the Dow 30 have dropped their tax rates by at least half in the last four decades. The article notes a few factors: the corporate tax rate of today (35%) actually is lower than the corporate tax rate of 1971 (48%); Large U.S. companies today are increasingly multinational companies and so can keep corporate profits overseas; Companies have become increasingly aggressive in their tax strategies. But here’s another factor: Lobbying. Changes in reported tax rates
| Company | 2007-2010 decline | 2007 rate | 2010 rate | 2007- 2009 lobbying (in millions) | Estimated tax reduction (in millions) |
|---|---|---|---|---|---|
| Exxon Mobil | -1.1% | 41.8% | 40.7% | $81.92 | -$565.32 |
| Verizon Communications | -7.9% | 27.4% | 19.4% | $77.58 | -$1,005.51 |
| General Electric | -7.6% | 15.0% | 7.4% | $73.17 | -$1,082.70 |
| At&T | -40.4% | 34.0% | -6.4% | $70.96 | -$7,359.95 |
| Altria | +0.2% | 31.5% | 31.7% | $63.31 | none |
| Amgen | -7.1% | 20.1% | 13.0% | $58.33 | -$377.16 |
| Northrop Grumman | -11.4% | 32.9% | 21.5% | $57.56 | -$296.08 |
| Boeing | -7.1% | 33.7% | 26.5% | $56.99 | -$321.5 |
| Median among 200 companies | -0.6% | 31.8% | 31.6% | $5.48 | -$13.08 |
