Boeing Corporation makes billions in profits but pays no corporate income tax. In fact, most years the government pays them – a lot. From today’s Seattle Times:
Although the aerospace and defense giant booked a profit of $5.9 billion last year, the U.S. government winds up owing the company $199 million.
“Every citizen of the state of Washington can proudly say that they pay more taxes than Boeing,” said Bob McIntyre, director of the Washington, D.C.-based tax-policy-research group Citizens for Tax Justice (CTJ).
Boeing’s federal tax rate works out to negative 3.3 percent.
Over the past dozen years, during which Boeing reported to its shareholders a total profit of more than $43 billion, the company’s net cumulative refund of federal tax is more than $1.6 billion.
Taking all the federal taxes paid, or not paid, since 2002, Boeing’s average federal tax rate is minus 3.8 percent.
Their competitors pay taxes:
Lockheed Martin, Northrop Grumman and General Dynamics are respectively plus 18.4 percent, plus 24 percent and plus 29 percent.
With all those profits and subsidies from the federal government, one would think Boeing could afford to keep funding the defined benefit plan for the machinists that build the planes. But no, the machinists had to cave in to corporate threats to move their jobs from Seattle to some southern state where unions have little or no power and accept a 401(k) plan in place of their pension plan.
With such a focus on profits the company also must have had to cut compensation and benefits for CEO Jim McNerney, right? Uh, that would be an emphatic “NO“.
Boeing Co. awarded Chief Executive Jim McNerney almost $27.5 million in annual compensation for 2012, a 20% increase from a year earlier
If McNerney retires now he will get $265,575 a month.
Okay then, so since he’s set for life and he’s made the tough decision cut benefits for workers that build the airplanes that make him so rich, he certainly wouldn’t do anything to interfere with what they can expect to receive in the way of Social Security benefits, right? Oh yes he would…
In recent years Boeing CEO Jim McNerney has headed the Business Roundtable, a lobbying group of top U.S. corporations. Earlier this year that group called for raising the eligibility age for Social Security to 70 years old, as well as crimping back on the benefits (by reducing the index of inflation used to calculate payouts.)
So Boeing screws the federal government out of billions in tax revenue, pays it’s CEO tens of millions per year, cuts corporate benefits for its workers, and lobbies for reductions its workers federal benefits.
What a great corporate citizen! I mean “person”. Who wouldn’t want to hang out with a dick like that?