Title: Boeing Paid No Federal Income Tax Last Year: Analysis | HuffPost
Headings: Boeing Paid No Federal Income Tax Last Year: Analysis
Boeing Paid No Federal Income Tax Last Year: Analysis
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Content: When the Boeing decides to embark on building a new aircraft, its taxes are deferred to encourage investment that could take decades to materialize a profit. But once they actually deliver the aircraft, those deferred taxes turn into current ones. “Our current tax expense has been reduced somewhat in recent years by the very large investment we have made in American jobs, production facilities and research and development for our new airplanes — they are taxes that largely are deferred until we begin to deliver our new airplanes (and get the revenue back from our investment) in high volume at steady rates,” Bickers wrote in an email to The Huffington Post. The chart below from Boeing’s 10-K filing with the Securities and Exchange Commission shows the company’s deferred and current tax expenses. The -82 under “Current tax expense” is what the company paid in federal taxes this year, while other taxes are listed as “deferred.” Both are considered part of the company’s total tax expense: While it’s true that the Center for Effective Government analysis doesn’t include Boeing’s deferred taxes, Gardner characterized them differently. “ Deferral technically means that you’re postponing tax, that this tax will be paid some day,” he said. “ They are essentially shifting taxes forward indefinitely.” Boeing’s not alone in using corporate tax breaks to its advantage, and Gardner noted that they’re doing nothing that’s illegal in any way.