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  1. #1
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    Corporate Welfare

    http://www.huffingtonpost.com/2014/0...n_4824918.html

    Boeing reported an $82 million tax refund last year, but made $5.9 billion in U.S. pre-tax profits during the same period, the analysis of the company’s recent government filings found. That means Boeing paid a federal tax rate of -1.4 percent.
    The word "hero" is frequently abused badly. This is a real hero.

  2. #2
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    but they need it because government gets in the way of small business owner's job creation Obamacare liberals.
    "Stop doing the wrong things. Stop promoting competition and choice as answers to the very inequality that was created by competition and choice."
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  3. #3
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    Doesn't tax refund = Getting $$$ back because you overpaid your taxes during the year?

    Didn't read the link tho....


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  4. #4
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    Didn't read either but that was the first thing I thought was a refund ment they paid too much to begin with. If the title said tax break not refund I would understand the math a bit better.

    Here is what came from a link in the article:

    "Our effective income tax rates were 26.4%, 34.0% and 25.6% for the years ended December 31, 2013, 2012 and 2011, respectively. Our 2013 effective tax rate is lower than 2012 primarily due to the inclusion of the U.S. research and development tax credit (research tax credit) in 2013, which was not available in 2012, and the recognition of previously unrecognized tax benefits as a result of new regulations described below. In 2013, President Obama signed into law the American Taxpayer Relief Act of 2012 that retroactively renewed the research tax credit for 2012 and extended the credit through December 31, 2013. As tax law changes are recognized in the period in which new legislation is enacted, the 2012 research tax credit of $145 was recorded in the first quarter of 2013. Our 2012 effective tax rate was higher than 2011, primarily due to tax benefits of $397 recorded in 2011 as a result of federal income tax audit settlements in addition to research tax credits which were not available in 2012. The research tax credit expired on December 31, 2013. If the research tax credit is not extended there would be an unfavorable impact to our 2014 effective income tax rate.
    On September 5, 2013, the Internal Revenue Service (IRS) issued proposed regulations that amend the definition of research and experimental (R&E) expenditures. The regulations provided clarity regarding the categories of expense that can be considered when computing the research tax credit. Based upon our analysis of the regulations, $212 of previously unrecognized tax benefits related to research tax credits were recorded as a reduction to tax expense in the fourth quarter of 2013."

    So the refund was due to a tax credit in which they overpaid in a previous year.
    Last edited by Godstree; 02-21-2014 at 11:15 AM.

  5. #5
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    Once we understand what actually happened it makes perfect sense. And while I get that big corporations have the most powerful lobbyists, the tax code is still a mess. Individuals lose the ability to take some deductions once their income rises to a certain level, and its hardly the level of being "rich". But Corporations like Exxon and Boeing get huge tax credits/deductions despite having incredibly huge profits, sometimes measured in multi billions per quarter. Simple reforms that make sense are phase outs for corporate deductions at certain levels. Big breaks for small business, no breaks for massive corporations.
    "What's so funny about peace , love and understanding?" - Elvis Costello

  6. #6
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    One obvious example of Corporate Welfare is electricity rates here in NY. Residential rates are among the highest in the country, around 18 cents/kwh. Big companies don't pay anywhere close to that. They all get "special" rates to encourage them to do business in NY. Of course taxpayers are subsidizing that indirectly via their inflated residential rates.

  7. #7
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    Quote Originally Posted by DonMan View Post
    They all get "special" rates to encourage them to do business in NY. Of course taxpayers are subsidizing that indirectly via their inflated residential rates.
    NY should start charging the hell out of the them and drive those companies out of the state. The common taxpayers of NY don't need to be burdened with having crap like business around -- tell those companies to move to Texas.

  8. #8
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    Quote Originally Posted by Augustus View Post
    NY should start charging the hell out of the them and drive those companies out of the state. The common taxpayers of NY don't need to be burdened with having crap like business around -- tell those companies to move to Texas.
    I was going to mention Texas. Seems Rick Perry has been recruiting business from all over the US to move to Texas, tax breaks, friendly regulation, reach arounds, the whole works. He was in Orange County not too long ago and recruited a 300 person call center to Austin that one of my clients here runs, that's just off the top of my head, I know there are more. Texas economy must be booming as a result of these efforts.

    Not going to comment just yet on the entire merits of his techniques, except to say he's not really creating jobs, he's transferring them away from other places, a net wash for the nation. Will be interesting to watch the long term implications of this state vs state economic war shaping up.
    "What's so funny about peace , love and understanding?" - Elvis Costello

  9. #9
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    Heh, I was sharing this story with a coworker who let me in on this nugget, via his pal who works at Websense.

    Websense is a big San Diego internet software security company, and they were offered $4.5M by Perry to move to Austin. They announced they had an agreement earlier this month.

    But the Austin City Council had to vote on it, and took a competing offer from another company and supposedly reneged on the Websense deal. Then supposedly the other company dropped out, and Austin went back to Websense and is offering them the original deal, plus offering the other (Dropbox) company the same deal.

    As of yesterday:
    Austin City Council approved two incentive packages for Websense Inc. and Dropbox Inc.'s planned expansions to the city at its meeting Thursday afternoon.
    The companies will now decide whether or not to commit to the city, and are expected to make official announcements soon. Combined, Dropbox and Websense would add 640 jobs to Austin and invest about $15 million. The proposed deals were originally announced earlier this month.
    Websense is supposedly going to tell Austin to piss off, but that could change. All in all this whole thing seems like an episode of House of Cards. Back room deals, counter offers, broken promises, embarrassing press releases and retractions.
    "What's so funny about peace , love and understanding?" - Elvis Costello

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