Tax Refund

[MattK]

Exxon tries to limit the tax pain with the help of 20 wholly owned subsidiaries domiciled in the Bahamas, Bermuda and the Cayman Islands that (legally) shelter the cash flow from operations in the likes of Angola, Azerbaijan and Abu Dhabi. No wonder that of $15 billion in income taxes last year, Exxon paid none of it to Uncle Sam, and has tens of billions in earnings permanently reinvested overseas.

Zach- I'm pretty sure Exxon payed very little in tax to Uncle Sam...as in none! I would be willing to bet they made a net profit last year in the US. In the same article it listed GE as another company who paid a net of zero to Uncle Sam...

 

[Flatrock]

Zach- I'm pretty sure Exxon payed very little in tax to Uncle Sam...as in none! I would be willing to bet they made a net profit last year in the US. In the same article it listed GE as another company who paid a net of zero to Uncle Sam...

This is one of the MAJOR consequences of our ridiculous tax code, the ability of corporations to hide income. Of course, we have the second highest corporate tax in the world so of course corporations are going to try and reduce their taxes. All of us would do the EXACT same thing. If fact, we all do already. Almost everyone cheats a little on their taxes if they can, some cheat a lot.
Another thing though that people dont realize is how much revenue the U.S. corporations get from overseas. Coca Cola gets over 75% of their revenue from outside the U.S. Since taxes are so high in America, they pay taxes overseas at lower rates. All of the big U.S. companies do this. If the U.S. drastically cut the corporate tax rate, it would be a HUGE job creator and tailwind for our economy. And I'll bet big companies would actually pay more in taxes with a lower tax rate since they wouldnt have to shelter it elsewhere. Just my opinion.