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 |
Lobbyists help lower corporate tax rates for companies investing in alternative energy
The alternative energy heavy NextEra Energy already had six different firms helping it lobby on tax policy when it brought... View Article
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