NCPA - National Center for Policy Analysis

Corporate Taxes Often Exceed Earnings

June 23, 1999

A study by the Fund for Stockowners Rights has found that the government takes more from American companies than shareholders make.

  • Businesses pay $1.58 in taxes for every $1 in net income to the company, FSR found.
  • Since companies pay many taxes besides income taxes -- such as payroll taxes, sales taxes, property taxes, use taxes, workers' compensation taxes, unemployment insurance taxes, import duties, gas taxes and others -- the FSR is not even sure its study caught them all.
  • Oil companies pay among the highest taxes compared to net income -- with Exxon, for example, paying $3.43 for every $1 in net income.
  • Next highest taxed were many utilities -- with Niagara Mohawk Power Corp. paying $3.26 in taxes for every $1 of net income.

In the study of 154 major American companies, Florida Progress Corp. paid the highest relative taxes, with a bill totaling 479 percent of net income.

Source: Grover Norquist (Americans for Tax Reform), "Big Daddy Investing," Investor's Business Daily, June 23, 1999.

 

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