Boeing is working the system from every angle. From sweet taxpayer funded defense contracts to the sweet taxpayer funded Export Import Bank which subsidizes its civilian efforts, to only God knows what else, Boeing gets crony capitalism. It’s a master.
Since the taxpayers pad the bottom line of the company I guess we shouldn’t get too bent out of shape when we hear that Boeing’s effective federal tax rate was -1.4%.
I love it when GE and Boeing and these other huge government contractors who happen to have close relationships all over Capitol Hill pay less in taxes in absolute terms than the typical US household.
I’m all for reducing the tax burden for business, but if your business exists because of the taxpayer, if your company is actively courting politicians for contracts paid for by other people paying taxes, well that’s a different equation.
Since 2008, Boeing has reported between $1.6 billion and $5.9 billion in profits each year, and yet has paid no federal income taxes in three of those years. Over the last six years, Boeing has reported $26.4 billion in pre-tax profits to its shareholders, while claiming a total of $105 million in refunds from the IRS, an effective tax rate of -0.4 percent.
With $20 billion in sales to the federal government in fiscal 2013, Boeing was the nation’s second largest contractor. Boeing alone received 4.4 percent of all federal government contracts last year. Boeing reported to shareholders that 34 percent of its 2013 sales were made to the U.S. government.