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: , , ,

Favorite

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

  • The assault on Obamacare begins

    Donald Trump Friday night signed an executive order directing government to scale back Obamacare to the extent possible. Though the signing was mostly symbolic, it likely has implications for Arkansas.
    • Jan 21, 2017
  • Two dead in North Little Rock shooting

    two people were fatally wounded about 9 p.m. Friday in a home in the 1400 block of Division Street, North Little Rock.
    • Jan 21, 2017
  • 2nd Amendment meets the 1st in Fayetteville on campus carry

    They've had a forum in Fayetteville today on Rep. Charlie Collins' fervent desire to force more pistol-packing people onto the campus at the University of Arkansas (and every other college in Arkansas.) He got an earful from opponents.
    • Jan 20, 2017
  • More »

Readers also liked…

Most Shared

  • Sarah Huckabee Sanders to be deputy White House press secretary

    Donald Trump announced additional White House staff today, notably including Sarah Huckabee Sanders, deputy assistant to the president and principal deputy press secretary.
  • Legislation filed for $10 million school voucher program

    The legislation to vastly expand transfer of state tax dollars to private schools came before the school choice day event I mentioned earlier.
  • Pork and more

    Some notes on disparate topics before I take a vacation break.
  • Trumpeting

    When President-elect Trump announced he would, in a few days, force Congress to enact comprehensive health insurance for everyone, poor or rich, that would provide better and cheaper care than they've ever gotten, you had to wonder whether this guy is a miracle worker or a fool.
  • Putin and Trump

    Here's a thought exercise: What do you suppose would happen if Russian strongman Vladimir Putin decided to clarify remarks he reportedly made about Donald Trump during the election campaign?

Visit Arkansas

1.73-carat diamond found at Crater of Diamonds State Park

1.73-carat diamond found at Crater of Diamonds State Park

Jack Pearadin and Doug Nelsen found a 1.73-carat diamond after nearly a year of searching the park's field.

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation