A recent report published by the Institute for Policy Fairness and Americans for Tax Fairness reveals that Walmart cut its taxes by $104 million by giving executives lavish "performance-based" bonuses. See the IPS post ttiled Walmart's Executive Bonuses Cost Taxpayers Millions.
Huffington Post addressed the issue in its (June 4) article How Your Tax Dollars Subsidize Walmart Executives' Paychecks. Some key points:
- Over the past six years, Walmart has cut its tax bill by $104 million thanks to a loophole in the corporate tax code that lets companies deduct the cost of performance-based pay for executives.
- During that time, executives took home $208 million in performance-based pay
- Some of that pay came despite dubious performance: Walmart's U.S. same store sales, a key measure of retail health, have dropped for 5 quarters in a row.
- Walmart executives have blamed at least some of the bad performance on cuts to government assistance to low-income customers.
- Walmart and fast-food companies have come under heavy fire for paying workers low wages, a practice that studies show also costs taxapayers when their workers rely on public assistance.
- Walmart's income disparity extends to customers suffering from food-stamp cuts. Instead of raising the pay of low-income workers, many of whom are likely Walmart customers, the company boosted the pay of its executives.
For more on this topic, consult the (June 4) Forbes post Walmart slashes tax bill by giving top executives big bonuses and the (May) New York Times article Making Ends Meet At Walmart
And for other recent news about Walmart executives, go to Palm Beach Times post Walmart Senior Executives Step Down Following Bribery Scandal. Click on "read more" and you'll get the informative June 4 New York Times article After Bribery Scandal, High-Level Departures at Walmart.