In theory, corporations face a 35 percent federal tax rate from the Internal Revenue Service.But as discussion on Capitol Hill begins to focus on tax reform, a new report says many profitable Fortune 500 companies pay a whole lot less than 35 percent — and 18 corporations in particular have paid no taxes at all in recent years.Among the 18? Sempra Energy, the San Diego-based company whose subsidiaries include San Diego Gas & Electric and Southern California Gas.According to figures compiled by the Institute on Taxation and Economic Policy (ITEP), a left-of-center group based in Washington D.C., between 2008 and 2015 Sempra earned $7 billion in profit but actually received $34 million back in federal taxes, equating to an effective tax rate of minus 0.5 percent.“Sempra looks to me like a very straight-forward and very typical example of a company that’s able to use accelerated deprecation tax breaks to reduce their effective tax rate,” said Matthew Gardner, … [Read more...] about Sempra has paid no corporate taxes in recent years … and it’s all legal
Paying corporation tax
‘Time for middle class tax justice’: California corporate tax bill offsets Trump cuts
A pair of California lawmakers want to claw back some of steep tax cuts that corporations will receive under the federal tax overhaul signed last month by President Donald Trump. Democratic Assemblymen Kevin McCarty of Sacramento and Phil Ting of San Francisco announced Thursday that they will pursue a constitutional amendment to add a surcharge on large companies that do business in California, potentially raising billions of dollars to expand social services for Californians. “We’ve seen enough billionaire justice from the presidency,” McCarty said in an interview. “It’s time for middle class tax justice.” Trump’s plan reduced the federal corporate tax rate from 35 percent to 21 percent, which Republican and business leaders hailed as an incentive for a surge of capital investment and job growth. But Democrats denounced the change as a giveaway to the wealthy that would grow the national debt and require future cuts to welfare programs such … [Read more...] about ‘Time for middle class tax justice’: California corporate tax bill offsets Trump cuts
Some utility rates could go down after US corporate tax cuts
0 View Gallery View Comments OKLAHOMA CITY (AP) — Public utility regulators from Oklahoma to Massachusetts are considering lowering the rates that homeowners and businesses pay for electricity and natural gas after a federal tax overhaul signed into law by President Donald Trump reduced the corporate income tax rate by 14 percent. The tax overhaul that went into effect Jan. 1 lowers the highest corporate income tax rate from 35 percent to 21 percent. Now, regulators and consumer groups such as AARP are demanding that the rates consumers pay be rolled back. Utilities are allowed to incorporate federal income tax obligations into the rates they charge customers. Exactly when and where consumers might see savings remains to be seen as regulators look into the matter. ___ SAVINGS FOR UTILITIES IN THE MILLIONS Oklahoma Attorney General Mike Hunter estimates five public utilities operating in the state will save at least $100 million a year. In Montana, regulators estimate … [Read more...] about Some utility rates could go down after US corporate tax cuts
Donald Trump Jobs: President’s Corporate Tax Reforms May Be Great For M&A But Terrible For Creating Employment Opportunities
An original version of this article appeared in the Motley Fool. Based on the details released in his 100-day plan, Donald Trump plans to tackle a variety of issues early in his presidency. Trump and his Republican congressional peers have vowed to quickly repeal the Affordable Care Act, the hallmark piece of legislation enacted during the presidency of Barack Obama. Among Trump's laundry list of actions is to deregulate a number of critical sectors (e.g., banking and energy), open up federal land for the drilling of fossil fuels, and pass a $1 trillion infrastructure spending bill meant to repair or modernize our nation's aging roads and bridges. Trump's tax policies could be a boon for mergers and acquisitions Trump's landmark legislative action, however, is likely to be his call for individual and corporate income tax reform. Being a lifelong businessman gives hope to U.S. businesses of all sizes and investors that he can usher in a considerably friendlier growth … [Read more...] about Donald Trump Jobs: President’s Corporate Tax Reforms May Be Great For M&A But Terrible For Creating Employment Opportunities
List of companies that paid bonuses or boosted pay since tax bill passed
A growing number of companies benefiting from tax cuts are showing their employees the money.One-time cash bonuses are the most popular way companies are sharing the windfall they expect from paying less in taxes. Many employers are boosting hourly pay. And a small number say they will increase matching contributions to workers' 401(k) plans.Walmart is the latest to join their ranks. The retail giant announced Thursday that it planned to boost the starting pay for hourly workers to $11 and pay up to $1,000 in a one-time cash bonus to eligible associates based on seniority. More: Walmart boosts minimum wage to $11, hands out bonuses up to $1,000 for hourly workers More: AT&T, Comcast, Wells Fargo promise bonuses or pay hikes once tax cut bill passes More: Financial Tips 2018: How to get ahead on taxes, savings and insurance The conservative group Americans for Tax Reform has compiled a list that shows that more than 125 U.S. employers, both … [Read more...] about List of companies that paid bonuses or boosted pay since tax bill passed
No immediate benefits to ratepayers’ on utilities’ corporate tax breaks, panel rules
OKLAHOMA CITY — A divided Oklahoma Corporation Commission on Thursday approved orders to require five of the state’s largest utility companies to begin accounting for tax cut revenues they ultimately could be required to pass through to their customers. The orders, drafted by Commissioner Todd Hiett and supported by Commission Chairwoman Dana Murphy, also require those companies to include those calculations in pending rate cases or other commission proceedings. Companies that aren’t expected to file a case within four months are required by the orders to initiate a proceeding within that time to provide regulators with an accounting of the additional revenues they expect to receive through the Tax Cut and Jobs Act of 2017. The law, approved by Congress and President Donald Trump, cut corporate tax rates from 35 to 21 percent. Benefits from the corporate tax cut for the utilities could be passed through to customers either by rate cuts or by improvements in … [Read more...] about No immediate benefits to ratepayers’ on utilities’ corporate tax breaks, panel rules
Here’s why some Charlotte companies aren’t paying Trump tax bonuses
It’s been a welcome surprise for workers across Charlotte and elsewhere: Companies are awarding one-time bonuses, and some are boosting wages, in the wake of last month’s passage of a federal tax overhaul. But not every employee in town is reaping the benefits. Some of the area’s largest employers haven’t passed the tax cuts on to their rank-and-file, unlike other corporations such as Bank of America, Wells Fargo and American Airlines. Those moves follow President Donald Trump’s signing of legislation that slashes the corporate tax rate – what companies pay on their profits – from 35 percent to 21 percent. It’s the lowest level for the rate in about 80 years. “We’re still evaluating any impacts of the new tax legislation so we don’t have any specific plans at this time,” Duke Energy spokesman Neil Nissan said, making remarks similar to those from other companies. In addition to the Charlotte-based electric … [Read more...] about Here’s why some Charlotte companies aren’t paying Trump tax bonuses
JetBlue giving employees $1,000 bonuses from corporate tax cut
JetBlue is giving each of its 21,000 employees an equal share of the $21 million corporate tax cut the airline is receiving this year. The $1,000 bonuses will apply to all crewmembers who were employed by the company as of Dec. 31, 2017, except for the CEO and executive vice presidents. Employees can expect their payouts by the end of February. "We believe these tax changes will be positive for our company, and provide us the opportunity to do good things for our crew members, customers and shareholders," CEO Robin Hayes said in a statement that was co-signed by JetBlue's executive vice presidents. The airline is benefitting from the new law signed into action last month by Congress and President Trump that reduced the corporate tax rate from 35% to 21%. And JetBlue isn't the only carrier spreading the wealth to its staff. Southwest Airlines said it too will pay all full and part-time workers a $1,000 stipend without noting how many people it employs. And American Airlines … [Read more...] about JetBlue giving employees $1,000 bonuses from corporate tax cut
Here’s Who Got the Biggest Tax Rate Break From Corporate Tax Reform
The tax reform laws passed at the end of 2017 made massive changes to the way the U.S. government collects taxes. One of the biggest elements of tax reform affected the way that corporations get taxed, with massive tax decreases for companies of nearly all sizes. Most of the attention that corporate tax reform has gotten has gone to the largest corporations and the billions in savings they might reap. Yet when you look at the actual tax rates, the biggest tax rate decline goes to more modestly sized small business with relatively small profits. Image source: Getty Images. Why mid-sized businesses got the biggest corporate tax rate drop The headline numbers on corporate tax reform emphasized the decline from 35% to 21% in the top corporate tax rate. The way that most reports explained the reduction made it seem as though corporations never paid more than 35% of their marginal income in taxes. Yet when you look at the corporate tax brackets, you'll notice a strange … [Read more...] about Here’s Who Got the Biggest Tax Rate Break From Corporate Tax Reform
Stock market outlook for 2018: Corporate tax cut, economic momentum are good omens
The stock market received a holiday gift when Republicans in Congress hammered out a corporate income-tax cut that President Donald Trump signed Dec. 22. It's a gift that could keep giving, padding already-rising corporate profit margins and adding to economic momentum in the coming year.Investors responded favorably as the legislation worked through Congress, bidding up stock prices to near-record highs and shrugging off concerns that the tax cut will bloat the federal deficit.The Dow Jones industrial average finished 2017 at 24,719, up 4,956 points or 25 percent and just below its recordhigh of 24,876. The broader Standard & Poor's 500 finishedthe year at 2,674, up 19 percent. Nearly all larger Arizona-based corporations saw their stocks gain ground in 2017, paced by a 112 percent surge in the share price of First Solar, according to preliminary results from researcher … [Read more...] about Stock market outlook for 2018: Corporate tax cut, economic momentum are good omens