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Report: Boeing paid no federal taxes in 2013, claimed $82 million in refunds [UPDATED]

Boeing is one of the top federal contractors and earned 34 percent of its sales from the federal government.
By Ananth Baliga Follow @antbaliga Contact the Author   |   Updated Feb. 20, 2014 at 2:24 PM
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WASHINGTON, Feb. 19 (UPI) -- Boeing in 2013 reportedly paid no federal income taxes according to the Center for Effective Government.

According to financial disclosures made to the SEC, the company made $20 billion in sales to the government in fiscal 2013, and reported $5.9 billion in U.S. pre-tax profits.

Scott Klinger, Director of Revenue and Spending Policies at the Center for Effective Government, reports that Boeing paid $11 million in state income taxes and claimed $82 million in federal tax refunds. The $82 million in refunds puts its effective federal tax rate at -1.4 percent.

Klinger adds that over a six year period, Boeing made $26.4 billion in pre-tax profits and claimed $105 million in refunds, paying no taxes in three of those years despite reporting between $1.6 billion and $5.9 billion in profits each year.

In response to the report, a Boeing spokesperson maintained the company's effective tax rate for 2013 was 26.4 percent, about $1.5 billion, as per the chart on page 68 of the SEC filing, and added that tax liability is often deferred on investments in undelivered projects.

Having won 4.4 percent of all federal government contracts last year, the country's second largest contractor reported to its shareholders that 34 percent of its sales came from the government.

[Updated to include Boeing's response to the report, with added attribution to Scott Klinger.]

[Center for Effective Government]
[SEC Filing]

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