Boeing’s tax burden is deferred

How much did you pay in federal income tax last year?

If it was more than zero, you paid more than the Boeing Co., which didn’t pay any federal taxes, despite reporting more than $5.9 billion in U.S. pre-tax profits last year, according to the company’s Form 10-K, which it recently filed with the U.S. Securities and Exchange Commission.

Boeing actually claimed $82 million in federal tax credits. That gave the company an effective tax rate of –1.4 percent, according to the Center for Effective Government, a left-leaning think tank.

In the same year, Boeing only reported paying $11 million in state tax, an effective rate of 0.2 percent.

Late last year, Washington made sure Boeing will pay little if any state tax when lawmakers extended breaks worth an estimated $8.7 billion through 2040.

Boeing sees its effective tax rate differently.

“Our effective income tax rates were 26.4 percent, 34.0 percent and 25.6 percent for the years ended Dec. 31, 2013, 2012 and 2011, respectively,” the company states in Form 10-K.

The difference is Boeing is including in those percentages deferred taxes that it doesn’t pay this year.

But as the Center for Effective Government notes, “Deferred taxes do not pay the government’s bills. If Boeing delivered an aircraft to the federal government and the Defense Department told Boeing that it was deferring payment years into the future, Boeing would not have much of a business.”

Boeing may have to pay deferred taxes in the future, and when it does, they’ll show up in its current taxes entry.

According to the Center for Effective Government, “Over the last six years, Boeing has reported $26.4 billion in pre-tax profits to its shareholders, while claiming a total of $105 million in refunds from the IRS, an effective tax rate of –0.4 percent.”

During the last fiscal year, the company collected $20 billion in sales to the federal government, making it the second-largest federal contractor.

More in Herald Business Journal

The FCC chairman moves to repeal ‘net neutrality’ rules

His plan would allow internet providers to control broadband speeds and favor their own services.

Boeing bolsters team for potential 797 with leading engineer

Terry Beezhold has been chief project engineer for the 777X program.

Tom Hoban
Are millennials warming up to life in suburbia?

They dominate the apartment market and their wants need to be accounted for, says columnist Tom Hoban.

Camano artist mixes flask, paintings for successful cocktail

Art flasks prove popular as bachelorette gifts, birthday presents and wedding favors.

Fluke’s T6 Electrical Testers receives Innovation Awards honor

Fluke’s T6 Electrical Testers have received top honors in the Tools and… Continue reading

Everett volunteer named ‘community champion’ by Molina Healthcare

Everett’s Jorge Galindo was one of seven people across the state to… Continue reading

Big Tobacco’s anti-smoking ads begin after decade of delay

Experts say the campaign will not reach people when they are young and most likely to start smoking.

Cascade Valley Health to hold Festival of Trees in Arlington

Cascade Valley Health Foundation will be holding their fifth annual Festival of… Continue reading

7-Eleven program helped add 500 trees, shrubs to Everett park

Last month, 7-Eleven helped plant more than 500 trees and shrubs at… Continue reading

Most Read