5 ms·

Which is still ridiculously well below the stated 35% corporate tax rate in the USA (source--IRS http://www.irs.gov/pub/irs-pdf/i1120.pdf http://www.irs.gov/pub

by mslate 15y ago

Which is still ridiculously well below the stated 35% corporate tax rate in the USA (source--IRS http://www.irs.gov/pub/irs-pdf/i1120.pdf http://www.irs.gov/pub/irs-pdf/i1120.pdf)

bryanlarsen 15y ago
But that 35% corporate tax rate is the highest in the developed world, so Google's overseas tax rate is going to be lower than 35% even if they didn't pull anything fancy. Also keep in mind that 35% corporate tax rate is also almost pure fiction too -- standard exemptions, let alone loopholes, are among the best in the world.
Matt_Cutts 15y ago
Note: I am only speaking for myself personally, not for my employer. I did a little searching, and http://www.reuters.com/article/2011/07/27/us-microsoft-tax-idUSTRE76Q6OB20110727 http://www.reuters.com/article/2011/07/27/us-microsoft-tax-i... says that in their last fiscal years, - Microsoft had an overall effective worldwide tax rate of 17.5%. - Google's effective tax rate was 21%. - Apple's effective tax rate was 24%. - IBM's effective tax rate was 25%. Then with a bit more digging into (independent Senator from Vermont) Bernie Sanders' twitter feed, I saw: - General Electric had an effective tax rate of -45.3% from 2008 to 2010: https://twitter.com/#!/SenatorSanders/status/132791467994386432 https://twitter.com/#!/SenatorSanders/status/132791467994386... - ExxonMobil had an effective tax rate of -38.3% in 2009: https://twitter.com/#!/SenatorSanders/status/132835853536989186 https://twitter.com/#!/SenatorSanders/status/132835853536989... - Merck had an effective tax rate of -1% in 2009: https://twitter.com/#!/SenatorSanders/status/132927696131985408 https://twitter.com/#!/SenatorSanders/status/132927696131985... - Boeing had an effective tax rate of -1.8% in 2008-2010: https://twitter.com/#!/SenatorSanders/status/132973012763938817 https://twitter.com/#!/SenatorSanders/status/132973012763938... - Verizon had an effective tax rate of -5.4% in 2009 and 2010: https://twitter.com/#!/SenatorSanders/status/132944059814785024 https://twitter.com/#!/SenatorSanders/status/132944059814785... Again, I'm just speaking for myself personally, not on behalf of my employer. My issue with the article was that I felt like it focused on Google when a broader perspective on corporate tax rates would have been more helpful.
- camz 15y ago
  Not to discredit Matt or his point, but I think the illustration of percentages does very little in illuminating valid points when it comes to taxation because most people don't understand the mechanisms and the theory behind tax law at this level. I agree with Matt that the focus on Google is unfair, but the use of these one off statistics without an in depth review of the companies named above for the last 10 years is also unfair (Yes it takes a review of the past 10 years to establish a proper understanding of a company's tax position). But, I will qualify that GE has an amazing tax team and the oil and gas industries are a beastly at lobbying.
- fred_nada 15y ago
  The reason why people single Google out is because you act like you do no wrong... See the article quote: "flying a banner of doing no evil, and then they're perpetrating evil under our noses" You are like an in the closet politician that is against gay marriage.

by mslate 15y ago

Which is still ridiculously well below the stated 35% corporate tax rate in the USA (source--IRS http://www.irs.gov/pub/irs-pdf/i1120.pdf http://www.irs.gov/pub/irs-pdf/i1120.pdf)

bryanlarsen 15y ago

But that 35% corporate tax rate is the highest in the developed world, so Google's overseas tax rate is going to be lower than 35% even if they didn't pull anything fancy. Also keep in mind that 35% corporate tax rate is also almost pure fiction too -- standard exemptions, let alone loopholes, are among the best in the world.

Matt_Cutts 15y ago

Note: I am only speaking for myself personally, not for my employer. I did a little searching, and http://www.reuters.com/article/2011/07/27/us-microsoft-tax-idUSTRE76Q6OB20110727 http://www.reuters.com/article/2011/07/27/us-microsoft-tax-i... says that in their last fiscal years, - Microsoft had an overall effective worldwide tax rate of 17.5%. - Google's effective tax rate was 21%. - Apple's effective tax rate was 24%. - IBM's effective tax rate was 25%. Then with a bit more digging into (independent Senator from Vermont) Bernie Sanders' twitter feed, I saw: - General Electric had an effective tax rate of -45.3% from 2008 to 2010: https://twitter.com/#!/SenatorSanders/status/132791467994386432 https://twitter.com/#!/SenatorSanders/status/132791467994386... - ExxonMobil had an effective tax rate of -38.3% in 2009: https://twitter.com/#!/SenatorSanders/status/132835853536989186 https://twitter.com/#!/SenatorSanders/status/132835853536989... - Merck had an effective tax rate of -1% in 2009: https://twitter.com/#!/SenatorSanders/status/132927696131985408 https://twitter.com/#!/SenatorSanders/status/132927696131985... - Boeing had an effective tax rate of -1.8% in 2008-2010: https://twitter.com/#!/SenatorSanders/status/132973012763938817 https://twitter.com/#!/SenatorSanders/status/132973012763938... - Verizon had an effective tax rate of -5.4% in 2009 and 2010: https://twitter.com/#!/SenatorSanders/status/132944059814785024 https://twitter.com/#!/SenatorSanders/status/132944059814785... Again, I'm just speaking for myself personally, not on behalf of my employer. My issue with the article was that I felt like it focused on Google when a broader perspective on corporate tax rates would have been more helpful.

camz 15y ago
Not to discredit Matt or his point, but I think the illustration of percentages does very little in illuminating valid points when it comes to taxation because most people don't understand the mechanisms and the theory behind tax law at this level. I agree with Matt that the focus on Google is unfair, but the use of these one off statistics without an in depth review of the companies named above for the last 10 years is also unfair (Yes it takes a review of the past 10 years to establish a proper understanding of a company's tax position). But, I will qualify that GE has an amazing tax team and the oil and gas industries are a beastly at lobbying.
fred_nada 15y ago
The reason why people single Google out is because you act like you do no wrong... See the article quote: "flying a banner of doing no evil, and then they're perpetrating evil under our noses" You are like an in the closet politician that is against gay marriage.