TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Tuesday, November 7, 2017

Tax Rates Of S&P 100

WalletHub, Corporate Tax Rate Report:

WalletHub analyzed annual reports for the S&P 100 — the largest and most established companies on the stock market — in order to determine the federal, state and international tax rates they paid in 2016. You can find the results, our detailed methodology and additional expert commentary below.


Ask the Experts: Should Corporations Pay Less than Consumers?

For insight into the country’s current corporate tax system as well as its potential fixes, we turned to experts [including Mark Gergen (UC-Berkeley), Jose Gabilondo (Florida International), and Ann Murphy (Gonzaga) in the fields of accounting and tax law for their thoughts on the following key questions:

  1. What is your assessment of the Trump administration’s corporate tax reform plan? What reforms do you think will ultimately be adopted?
  2. Is the U.S. leaving money on the table with the current corporate tax structure?
  3. What would you change about the way U.S. corporations are taxed?
  4. Do you consider tax-inversion deals to be unpatriotic?
  5. What should the relationship be between corporate and consumer taxes?

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Somebody please help Caterpillar.

Posted by: mike | Nov 7, 2017 11:07:24 AM

The methodology the authors use to estimate effective tax rates is simple but bogus. They divide taxes booked during the test period by pre-tax profits during that same period. This completely ignores Cary Brown effects and the benefits of deferral. Using the authors' methodology, the 100% expensing rules proposed by House Republicans do not change taxpayers' effective tax rates at all if the test period includes the entire useful life of any assets purchased. Sorry, but I cannot believe any of these numbers.

Posted by: Theodore Seto | Nov 7, 2017 2:00:32 PM

I realize this is about the best we can do, but it's still junk science. Using GAAP income to measure effective tax rates is nonsensical. Why? Because GAAP is junk science. Like the old commercial about only her hairdresser knows for sure (yes, I'm old), only the IRS knows how much tax the Fortune 100 really pay.

Posted by: Dale Spradling | Nov 8, 2017 5:35:22 AM