AT&T Paid No Federal Taxes in 2011, Saw $420 Million Refund CEO Made More ($18 Million) Than Telco Paid in Taxes AT&T is one of 26 companies that paid their CEOs more than they paid in taxes last year according to a new study by the Intstitute for Policy Studies. According to the report, the 26 companies paid their CEOs an average of $20.4 million last year while paying little or no federal tax on what were significant profits. In 2011, AT&T paid CEO Randall Stephenson $18.7 million, while getting a $420 million refund. That hefty refund was courtesy of new "accelerated depreciation" rules corporations bought lobbied for, resulting in you or your local community picking up the tab from the taxation shortfall created. From the report: quote:

In effect, we’re rewarding corporate executives for gaming the tax system. Our tax code is helping the CEOs of our nation’s most prosperous corporations pick Uncle Sam’s pocket. AT&T tells the Associated Press the accelerated depreciation tax loopholes they used allow the company to re-invest that money elsewhere, helping to "drive the economy and support good-paying jobs." You are, apparently, supposed to ignore the tens of thousands of employees laid off in recent years as the company turns away from landline services, and the steady decline in overall network investment made at the company -- specifically on the wireline side.The AT&T tells thethe accelerated depreciation tax loopholes they used allow the company to re-invest that money elsewhere, helping to "drive the economy and support good-paying jobs." You are, apparently, supposed to ignore the tens of thousands of employees laid off in recent years as the company turns away from landline services, and the steady decline in overall network investment made at the company -- specifically on the wireline side.The full report (pdf) is worth a read, explaining and grading a variety of proposed reform solutions to help curb excessive executive compensation and to shore up corporate tax dodging.







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Most recommended from 172 comments



pnh102

Reptiles Are Cuddly And Pretty

Premium Member

join:2002-05-02

Mount Airy, MD 2 recommendations pnh102 Premium Member So What? Why is it wrong for a private company to obey the tax code and reduce or eliminate its tax burden in a legal manner when everyone else who is about to whine about a company not doing so does the same thing themselves whenever they claim a tax deduction?

skeechan

Ai Otsukaholic

Premium Member

join:2012-01-26

AA169|170 1 edit 2 recommendations skeechan Premium Member Don't like it... ...reform the tax code. Get rid of all the different industry specific loop holes. Stop having government pick the winners and losers in business through lobbyist purchased tax code. The only deductions that should exist are those that could be taken by EVERY business, big or small, such as not having to pay taxes on revenues used to make payroll or pay for employee healthcare. This makes it cheaper for all businesses to employ.



Toss individual industry subsidies out the door...ethanol (and other corn products), oil...record prices or record profits...these guys don't need special tax breaks that other businesses don't get.



Then lower the rates for everyone. You shouldn't have a situation where AT&T pays NO taxes while the small business WISP operator shells out 28% because his business is a sole-proprietorship.