Boeing Complains About Losing Health Care Tax Break Despite Being One Of Least Taxed Big Corporations
Posted in Main Blog (All Posts) on April 1st, 2010 4:38 am by HL
Boeing Complains About Losing Health Care Tax Break Despite Being One Of Least Taxed Big Corporations
Since the Affordable Care Act passed last week, some of the country’s largest companies have complained about a provision that preserves a federal subsidy they receive for providing retirees with prescription drug coverage, but prevents them from deducting the subsidy from their taxes. Republicans and right-wing media have latched on, claiming health care reform is […]
Since the Affordable Care Act passed last week, some of the country’s largest companies have complained about a provision that preserves a federal subsidy they receive for providing retirees with prescription drug coverage, but prevents them from deducting the subsidy from their taxes. Republicans and right-wing media have latched on, claiming health care reform is going to hurt American businesses.
Today, Boeing Co. is the latest corporation to complain, announcing that it expects to take a $150 million tax hit because of the new law:
“Boeing will no longer be able to claim an income tax deduction related to prescription drug benefits provided to retirees and reimbursed under the Medicare Part D retiree drug subsidy,” the company stated in a release. “Although this tax increase does not take effect until 2013, accounting standards require that a deferred income tax asset be written down in the period legislation changing the tax law was enacted.”
An association representing 300 of the largest U.S. corporations is pushing for a repeal of the provision that ends the tax break on the government subsidy, something the Wonk Room’s Igor Volsky called “the worst kind” of taxpayer waste and “the most egregious form of corporate welfare.” These companies will still receive their subsidy, but they’ll no longer be able to take the tax deduction as well (so-called “double dipping“).
But Boeing’s complaint further rings hollow because the industry giant is among the largest U.S. companies that pay the least in corporate taxes. Conservatives complain about the high 35 percent U.S. corporate tax rate, but because of corporate welfare such as the prescription drug deduction, Boeing’s tax rate was just 3.2 percent averaged over the last 4 years and just 0.7 percent averaged from 2002 to 2007. And Boeing’s three-year effective tax rate from 2001-2003 was -18.8 percent.
But also, according to Boeing’s 2009 annual report, the company paid no federal income tax in 2009 and actually received $132 million back from the IRS. And in 2008, Boeing paid just $44 million in federal income taxes while netting $2.7 billion in earnings that year.
Therefore, it’s difficult to take Boeing’s whining seriously. After all, if they had any complaints, they could have aired them back in September when the Senate Finance Committee inserted the provision to end the tax break in the health care reform bill. And even then, the measure won approval from many business interests, with the chairman of Business Roundtable saying “it’s very closely aligned to [our] principles.”
Toby Keith joins LL Cool J in shock at being used for Palin?s Fox News show.
Fox News has been promoting Sarah Palin’s first episode of “Real American Stories,” set to air on Thursday, with “In Their Own Words” segments featuring celebrities talking about their lives. Last night on Twitter, rapper LL Cool J objected to being included in the show, saying that Fox was “misrepresenting” one of his interviews […]
Fox News has been promoting Sarah Palin’s first episode of “Real American Stories,” set to air on Thursday, with “In Their Own Words” segments featuring celebrities talking about their lives. Last night on Twitter, rapper LL Cool J objected to being included in the show, saying that Fox was “misrepresenting” one of his interviews from 2008 (which was not conducted by Palin). LL Cool J’s spokesperson said that the interview “was being repurposed without LL’s permission.” Fox ended up cutting LL Cool J’s interview out of Palin’s show. Now, country singer Toby Keith, another person featured in the “In Their Own Words” segments, is also upset at being caught off guard:
In a telephone interview on Wednesday, Elaine Schock, a publicist for Mr. Keith said: “I have no idea what interview they are using. Toby’s talked to Fox a number of times, and I had no idea that this was going to be on Sarah Palin’s special. Fox has never contacted me — not now, not when they were putting this together, not at all. I have no idea what they’re using.” […]
In a subsequent email message, Ms. Schock said that the interview with Mr. Keith likely happened in early 2009. Asked if Mr. Keith was ever interviewed by Ms. Palin, Ms. Schock said, “Absolutely not.”
A Fox News executive is claiming that the network e-mailed Schock on Monday “to report our show is finally going to air,” but Schock says she never received the message. “The last email I have from them is from January, 2009,” she said, adding, “I’m not saying Fox did not email me. Maybe they spelled my name wrong. I’m just saying I never got an email or a phone call from them.”
