Energy companies pay the most taxes amongst the S&P500

Total taxes paid for 2008 by the largest corporations in the U.S. (as represented by the S&P500) are shown in the table below. The Energy companies in the S&P500 earned 18.5% of the revenues in the group but paid 29.8% of the actual cash taxes paid in 2008. Financial firms paid less in aggregate but paid the highest rate compared to revenues (presumably due to fewer deductions such as depreciation, as the Financial sector is less hard-asset capital intensive). Energy companies paid at a rate twice that of many other industries. When this year is over, 2009 will likely be the same story, with energy companies being the largest corporate taxpayers in the country. The myth of big tax breaks for energy companies needs to be dispelled.



Source: Capital IQ, Company documents, SEC filings