Paying taxes today? Bank of America, Morgan Stanley, and others got a refund last year
Six of the most profitable companies in the U.S. were due a tax refund last year, according to a new analysis.
WalletHub reported Tuesday that Abbott Laboratories, Morgan Stanley, Bank of America, AIG, Bristol-Myers, and Verizon – all listed on the S&P 100 – paid an overall negative tax rate in 2012, resulting in reimbursement.
Bank of America reported $2.8 billion in net income for the year, while Morgan Stanley reported $507 million net.
The personal finance social network compiled data on company profits, withholding practices, and tax payments at the state, federal, and international level to determine the tax rates for each business.
Visa, MetLife, and Citi paid some of the lowest tax rates, and the average S&P 100 company pays about 16 percent higher tax rates than the top 3 percent of consumers.
Their fellow members atop the stock market index paid about 30 percent lower rates on international taxes than U.S. taxes, and tech companies such as Apple, eBay, and Google paid about 80 percent less abroad.
The findings did not address the practices of specific companies, but corporations can end up with a negative tax rate due to tax credits, offshore shelters, stock option deductions, and other loopholes.
[Image: banker pig in suit counts his wealth via Shutterstock]