Health care companies' huge tax windfalls
The Republican tax law has rerouted billions of dollars from the federal treasury into the bank accounts of health care companies and Wall Street investors.
By the numbers: These are some of the tax savings that have been calculated so far in 2018, according to my analysis of Q3 earnings reports.
- UnitedHealth Group: $1.1 billion
- Bristol-Myers Squibb: $463 million
- Johnson & Johnson: $430 million
- Gilead: $413 million
- Biogen: $118 million
- Universal Health Services: $92 million
Details: These numbers were calculated by taking each company’s effective tax rate from the first 9 months of 2017 and applying it toward operating profits in the first 9 months of 2018.
- The difference between that number and the amount the company actually paid so far this year, under a lower rate, equals an estimated total savings.
The bottom line: Some companies have had similar or even higher tax bills this year compared with last year. But these 6 companies alone have reaped $2.6 billion from the lower corporate tax rate — a haul that has more than paid for any lobbying to get the law across the finish line.