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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