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UNPAID BILLS:
HOW VERIZON SHORTCHANGES
GOVERNMENT THROUGH TAX
DODGING AND SUBSIDIES
BY CITIZENS FOR TAX JUSTICE AND GOOD JOBS FIRST
NOVEMBER 201
http://bit.ly/voSiv2
With more than $100 billion in annual revenues and nearly $15 billion in operating profits, Verizon
Communications is a large and prosperous company that should pay a substantial amount in taxes to
federal, state and local governments.
Verizon enjoyed some $14 billion in federal and state corporate income tax subsidies in the 2008-2010 period even though it earned $33.4 billion in pre-tax U.S. income during that time.
At the federal level, Verizon should have paid about $11.4 billion at the statutory rate of 35 percent during the three-year period. Instead, it got $951 million in rebates, putting its federal tax subsidies at $12.3 billion. Its effective federal tax rate was -2.9 percent.
At the state level, Verizon should have paid about $2.3 billion in corporate income taxes during the period but it handed over only $866 million. Its aggregate state rate was only 2.6 percent, far below the weighted state average rate of 6.8 percent. This gave it state tax subsidies of about $1.4 billion.
V
erizon also used a special tax loophole called the ReverseMorrisTrust to avoid paying about $1.5 billion in federal and state and local taxes on the sale of its landline assets in various states.
Verizon also aggressively seeks state and local tax subsidies through credits, abatements and exemptions. There is no centralized reporting on these subsidies but in this report we document $180 million in special tax breaks and grants Verizon and VerizonWireless received in 13 states.
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