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Oh, I hadn't read anywhere that Google has changed its tax strategy to increase its effective rate beyond the 2.4% they've paid in recent years. But maybe so.
by sverige 9y ago
Oh, I hadn't read anywhere that Google has changed its tax strategy to increase its effective rate beyond the 2.4% they've paid in recent years. But maybe so.
- klipt 9y agoThe Google employees being shot at almost certainly pay way more than that in income taxes.
- valleyer 9y ago2.4%? Their earnings reports say ~16%: https://abc.xyz/investor/pdf/2017Q3_alphabet_earnings_release.pdf https://abc.xyz/investor/pdf/2017Q3_alphabet_earnings_releas... Still lower than you'd expect given that the corporate tax rate was 35%, but way different from 2.4%.
- sverige 9y agoSorry, I was looking at older data. Or maybe that's a 16% rate on 0.5% of their actual profits.... https://www.theguardian.com/business/ireland-business-blog-with-lisa-ocarroll/2011/mar/24/google-ireland-tax-reasons-bermuda https://www.theguardian.com/business/ireland-business-blog-w... https://www.zerohedge.com/article/how-googles-refusal-pay-us-taxes-means-us-taxpayers-fund-its-innovation-resulting-benefit-10 https://www.zerohedge.com/article/how-googles-refusal-pay-us...
- closeparen 9y agoMunicipalities don't levy corporate income taxes. Services like police would be funded through property taxes on the companies' campuses.
- sverige 9y agoActually, in California, property taxes make up only 14% of the average municipality's revenue, and 22% of the average county's revenue.[1] But yes, I'll concede that Google probably does pay a share of the taxes required to pay for these services, though I doubt it is a share proportionate to its actual profits generated in the Bay area, since their tax accounting tricks are so sophisticated. [1] For the ugly details: http://www.ca-ilg.org/sites/main/files/file-attachments/basics_of_municipal_revenue_2016.pdf http://www.ca-ilg.org/sites/main/files/file-attachments/basi...
- closeparen 9y agoIn the document you linked, city revenues are based on property tax, sales tax, utility charges, fees, and fines. None of those things are meant to be proportional to profit. 9% does come from state and federal grants; Google-the-corporate-entity is maybe not contributing its fair share towards those, but its employees certainly are, and then some (the progressiveness of the progressive income tax curve is not cost-of-living adjusted).
- somecontext 9y agoIn case anyone is interested, Google's latest (2017 Q4) earnings press release is here: https://abc.xyz/investor/pdf/20171231_alphabet_10K.pdf https://abc.xyz/investor/pdf/20171231_alphabet_10K.pdf They quote, "Effective tax rate 138%".