While it is no surprise to hear a large number of US mega corporations pay little or no taxes to the federal government, it may surprise you to know seven CEOs of major US corporations made more money in one year than the companies they work for paid in taxes.
How is this possible? Igor Cornelsen had to explain it to me. In a new report called ‘Fleecing Uncle Sam’, the think tank The Center for Effective Government says the CEOs of Verizon, Boeing, Ford, Chevron, JP Morgan, General Motors and Citigroup were all paid more money than these seven companies paid in federal taxes. An average salary of more than $17 million each last year, to be exact.
While one company, Verizon, disputed the report, saying it had paid much more in federal taxes than the report suggests, the response from Citibank is likely to cause the most hilarity. After all, when Citibank intimates because they paid payroll taxes, property taxes and use taxes, they don’t have to pay federal taxes on their profits, most Americans who pay their fair share of federal taxes must be left thinking “Huh?”
As for the aerospace company Boeing, it was already in the news earlier in the week as the company has not paid a penny in federal income taxes in more than three years, and its state taxes across the US are paid at a lower percentage than the amount the poorest paid American pays.
Meanwhile, the president of Boeing makes more than the US president and more than 130 high-level government officials combined.