COMPARISON OF CORPORATE TAX RATES AMONG TRANSPORTATION MODES

A comparative analysis of the effective corporate tax rates reveals that airlines and railroads paid less in federal taxes than most companies in the United States, while trucking companies paid higher than average taxes, according to a report entitled "Effective Corporate Tax Rates 1986," published by Tax Analysts of Arlington, Virginia. Airlines as a group had the lowest effective corporate tax rate of any U.S. industry. The effective tax rate is defined as a company's actual tax liability measured as a fraction of taxable income. The airlines showed a negative tax rate of about 3 percent for 1986. Air express companies reported only a 2.25 percent tax rate. Collectively, the railroad industry posted a 12.5 percent tax rate. Water transportation companies showed a 7.3 percent rate. But the trucking indsutry paid on average 24 percent of its earnings in federal corporate income taxes. Each of the transport modes are compared in terms of their effective corporate tax rates in the article's graph.

• Corporate Authors:

  Regular Common Carrier Conference, ATA

  2200 Mill Road, Suite 350
  Alexandria, VA  United States  22314-4677
• Publication Date: 1988-3

Media Info

• Pagination: p. 25
• Serial:
  • TRANSPORTATION EXECUTIVE UPDATE
  • Volume: 2
  • Issue Number: 2

Subject/Index Terms

• TRT Terms: Air transportation; Analysis; Corporations; Income; Railroads; Rates; Taxation; Taxes; Transportation; Trucking; Water transportation
• Subject Areas: Finance; Transportation (General);

Filing Info

• Accession Number: 00608161
• Record Type: Publication
• Files: TRIS
• Created Date: May 31 1991 12:00AM