After Disney reported a 24 percent increase in profits – the largest quarterly earnings in the company’s history – Walt Disney Co. CEO Bob Iger has called for corporate tax changes, saying the United States should cut its corporate income tax rate.
We pay a very high corporate tax rate as a company. We know that America is very high, among the highest in the world, if not the highest in terms of corporate tax rates. That’s something that I believe has to change. We’ve got to become more competitive.
Disney paid a tax rate of 25.3 percent for the fiscal year in 2011, and 27.3 percent between 2008-2010. While this is lower than the federal statutory rate of 35 percent, Disney has been able to lower their tax bills with with various breaks and deductions, including a tax credit for domestic production activities. However, sources report Disney’s tax rates are higher than many other large companies in the U.S. Citizens for Tax Justice examined 280 different companies whose combined federal tax rate was just 18.3 percent.
Iger went on to say that “we’re not looking for corporations to get off lightly…we’re looking for corporations to be taxed fairly.” He says there are many companies who he does feel get off lightly due to taking advantage of loopholes that, in his opinion, should be closed.
Iger didn’t specify what he would like to see eliminated, nor what he believes the new federal income tax rate for corporations should be. However, earlier this year President Obama proposed lowering the corporate tax rate to 28 percent while eliminating many big tax breaks and re-defining some others.