Top 5 Companies Uncle Sam Loves
It is not surprising that even though the corporate tax rate is 35 percent, many of America’s largest corporations do not actually pay the full rate due to a number of loopholes and subsidiaries. Although many companies do not pay the full tax rate, some are favorites of the government because they do pay a lot in taxes.
The companies that tend to pay the full tax rate usually fall into a few categories, such as oil companies that produce “outsized profits”. The large oil companies grow even larger as oil prices continue to rise. Tech companies also tend to pay huge taxes along with some of the largest banks in the country. The five companies that pay the most in corporate taxes are ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), Apple (NASDAQ:AAPL), Wells Fargo (NYSE:WFC), and Wal-Mart (NYSE:WMT).
ExxonMobil leads the pack in the amount of taxes it pays. In both 2011 and 2012, the oil company paid approximately $31 billion in income tax. Exxon is at the top of the list because it is so large.
Based on sales, Chevron is the third largest corporation in the U.S., and it pays $20 billion in taxes. Except for one year since 2005, the company has paid at least $10 billion in taxes every year.
Although Apple is a relatively new company, it has already become one of the largest corporate tax payers. Apple’s tax rate increased from $2 billion four years ago to $4.5 billion two years ago. Additionally, in 2012, the company paid $14.21 in corporate taxes thanks to the success of the iPad, iPhone, and other Mac products.
Wells Fargo is often considered the most successful of America’s money center banks, and it pays the most in taxes along with that title. Wal-Mart is both the largest employer and the largest company in the U.S., and it paid $7.98 billion in taxes in 2012. Like, Apple, Wal-Mart is also a relatively young company compared to some of the other largest taxpayers. These companies continue to pay billions in taxes, but some politicians actually advocate reducing the tax rate in order to spur job growth.
Don’t Miss: Mr. Market Feels Extremely Optimistic.