Wednesday, June 4, 2014

New report focuses on taxpayer subsidies for Walmart executives

Posted By on Wed, Jun 4, 2014 at 12:10 PM

click to enlarge walmartbonuses.png
Another report for Walmart shareholders' week, this one from the Americans for Tax Fairness. It focuses, not on the wages and working conditions of low-level Walmart employees, but "excessive pay" for executives, subsidized by taxpayers.

From the report summary: 

Specifically,  the report calculates the cost of a tax loophole that allows Walmart and other corporations to deduct unlimited amounts from their income taxes for the cost of executive compensation if it is in the form of stock options and other so-called “performance pay.” This tax loophole serves as a massive subsidy for excessive executive compensation and leaves other taxpayers to pick  up the tab. In effect, the larger the executive payouts the less Walmart pays in taxes.

Key findings in this report include:

* $104 Million: Walmart reduced its federal tax bills by an estimated $104 million over
the past six years by exploiting a tax loophole that allowed eight top executives to
pocket more than $298 million in “performance pay” that was fully tax deductible. That
sum would have been enough to cover the cost of free school lunches for 33,000
children for those six years.

* $40 Million: Michael T. Duke, Walmart’s recently retired President & CEO and currently
Chairman of the Executive Committee of the Board of Directors, pocketed nearly $116
million in exercised stock options and other “performance pay” during the period 2009-
2014. That translates into a taxpayer subsidy for Walmart of more than $40 million—
enough to cover the average cost of food stamps for 4,200 people for those six years.

* $50 Billion: Taxpayers would save $50 billion over 10 years, according to the Joint
Committee on Taxation, if Congress closed this perverse “performance pay” loophole by
capping the tax deduction at $1 million for each employee’s total compensation, with
no exceptions for performance pay.
It estimated that taxpayers spend $7.8 billion a year subsidizing Walmart and the Walton
family, which owns more than 50 percent of Walmart, by providing public assistance to the
company’s employees and through various other subsidies and tax breaks

Tags: , , ,


Speaking of...

Comments (6)

Showing 1-6 of 6

Add a comment

Subscribe to this thread:
Showing 1-6 of 6

Add a comment

More by Max Brantley

  • Federal investigation uncovers foster parent's abuse of at least five children

    U.S. Attorney Kenneth Elser announced today Clarence Garretson, 65, of Van Burean had pleaded guilty in federal court today to five counts of interstate transportation of a child with intention engage in criminal activity.
    • Oct 25, 2016
  • Identity released in Little Rock police shooting

    Roy Lee Richards, 46, who lived in apartments on Green Mountain Drive, has been identified by police as the man fatally shot about 12:37 a.m. this morning by officers responding to a disturbance call about a man with a long gun in the 500 block of East 8th Street.
    • Oct 25, 2016
  • Zoo announces death of 22-year-old lion

    The Little Rock Zoo announced today the death of Sidney, a 22-year-old female lion. The lion was euthanized after a corneal graft on her eye deteriorated.
    • Oct 25, 2016
  • More »

Readers also liked…

  • Democratic Party calls for Justin Harris resignation

    The Arkansas Democratic Party today issued a statement saying Republican Rep. Justin Harris should resign.
    • Mar 6, 2015
  • The Lemon Cakery is pure bliss

    In the eternal and often epic battle between "cake" and "pie," I normally come down on the pie side of things. The Lemon Cakery puts that rule to the test—deliciously.
    • Oct 1, 2015
  • Foster family disputes key statements from Justin Harris

    Craig and Cheryl Hart were the foster parents of the two sisters who were adopted by Rep. Justin Harris and his wife Marsha and later "rehomed." The Harts say that the adoption was allowed to proceed over the objections of the foster parents and local DHS staff due to pressure exerted by Cecile Blucker, head of the Division of Children and Family Services, on behalf of Justin Harris.
    • Mar 7, 2015

Most Shared

Most Viewed

Most Recent Comments



© 2016 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation