Read time: 1 minute

Honeywell CEO Wants To Pay No Taxes, Despite Creating No Jobs

Honeywell CEO David Cote made news recently by calling for corporations to pay zero taxes in the United States, something he claims would boost the creation of jobs. But Honeywell has paid an effective tax rate of 2 percent in the last four

[oldembed src="https://www.youtube.com/embed/EBwpOSlrKQg" width="425" height="300" resize="1" fid="21"]

Honeywell CEO David Cote made news recently by calling for corporations to pay zero taxes in the United States, something he claims would boost the creation of jobs. But Honeywell has paid an effective tax rate of 2 percent in the last four years and cut 1,000 jobs in the U.S. during that time.

Cote argued that if corporations paid no taxes, they would reinvest that money in creating jobs -- an oft-repeated conservative and Libertarian claim that is rejected by almost all available evidence. Take Cote's own company, for instance. Honeywell is a profitable company. It made earnings of $825 million in 2011, an increase over the $708 million it made in 2010, and saw a related increase in the value of its shares, where profts on the shares from one year to the next were nearly $1.

During the last four years, Honeywell's effective tax rate was 2.0 percent, and that was only because it paid taxes in 2011. From 2008-2010, Honeywell had an effective tax rare of -0.7 percent. In the last two years, Honeywell cut 1,000 jobs in the U.S., while adding 11,000 jobs abroad. So despite paying basically no taxes in the U.S. in recent years, Honeywell continued to ship jobs overseas.

So much for lower taxes leading to more American jobs.

Can you help us out?

For 16 years we have been exposing Washington lies and untangling media deceit. We work 7 days a week, 16 hours a day for our labor of love, but with rising hosting and associated costs, we need your help! Could you donate $20 for 2020? Please consider a one time or recurring donation of whatever amount you can spare, or consider subscribing for an ad-free experience. It will be greatly appreciated and help us continue our mission of exposing the real FAKE NEWS!

More C&L Coverage

Comments

NOTE: We will be changing to a new commenting platform in the next couple of weeks. We will supply more details as we get closer to the change. We understand some users are having problems with comments loading and this will hopefully remedy that problem

We welcome relevant, respectful comments. Any comments that are sexist or in any other way deemed hateful by our staff will be deleted and constitute grounds for a ban from posting on the site. Please refer to our Terms of Service (revised 3/17/2016) for information on our posting policy.