Report: Walmart and Waltons Get $7.8B/Year in Tax Breaks, Subsidies

Posted by on Apr 15, 2014 in Walmart Watch Blog | 6 Comments
Report: Walmart and Waltons Get $7.8B/Year in Tax Breaks, Subsidies

A new report this week from Americans for Tax Fairness catalogs the incredible scale at which Walmart relies on the rest of us to pick up the tab for the company’s low wages and paltry benefits. It won’t be news to regular readers of this blog that taxpayers subsidize Walmart, but the total is really unbelievable The top-line conclusion of the report – Walmart and the Walton family benefit from more than $7.8 billion dollars in annual subsidies and tax breaks. Overall, the report estimated that our public schools could hire an additional 105,000 teachers with the $7.8 billion in annual subsidies and tax breaks received by Walmart and the Waltons. In addition, the Walton family uses specialized tax trusts to avoid estate taxes. The report estimates that the family has dodged upwards of $3 billion in taxes through these trusts. The report summarizes some of the subsidies and tax breaks covered this way:

  • Walmart receives an estimated $6.2 billion annually in mostly federal taxpayer subsidies. The reason: Walmart pays its employees so little that many of them rely on food stamps, healthcare and other taxpayer-funded programs.
  • Walmart avoids an estimated $1 billion in federal taxes each year. The reason: Walmart uses tax breaks and loopholes, including a strategy known as accelerated depreciation that allows it to write off capital investments considerably faster than the assets actually wear out.
  • The Waltons avoid an estimated $607 million in federal taxes on their Walmart dividends. The reason: income from investments is taxed at a much lower tax rate than income from salaries and wages.

There are increasing calls to end taxpayer support for poverty-wage employers around the nation.  No company and no family better exemplifies the need for change than Walmart, with $16 billion in profit last year and the Waltons, with more wealth than 42% of Americans combined. We support calls from taxpayer advocates and others around the nation to close needless loopholes that benefit billion-dollar companies and the super-wealthy, at the expense of average Americans.  Walmart associates shouldn’t have to rely on public assistance to get by, and taxpayers shouldn’t be on the hook for Walmart’s low wages.  We’re pleased that Americans for Tax Fairness and others are helping the public to understand more about this boondoggle.

6 Comments

  1. Tom P Noonan
    April 16, 2014

    it is time for Walmart join the Union for all Walmart Workers and for all Sam’s Club Workers right of away and right now by make Walmart give all Walmart Workers and all Sam’s Club outflow a Living Wage With Affordable Healthcare right of away and right now please without close down all the Walmart Store and without close down all the Sam’s Wholesale Club.

    Thank You Very Much
    From Tom P Noonan

    Reply
  2. Tom P Noonan
    April 17, 2014

    it is time for Walmart join the Union for all Walmart Workers and for all Sam’s Club Workers right of away and right now please by make Walmart give all Walmart Workers and give Sam’s Club Workers a Living Wage With Affordable Healthcare right of away and right now please without close down all the Walmart Store and without close down all the Sam’s Wholesale Club.

    Thank You Very Much
    From Tom P Noonan

    Reply
    • Billybob 44
      April 24, 2014

      You sound like a broken record or a scratched CD, Tom.

      Reply
  3. Billybob 44
    April 24, 2014

    Fox News DOES tell the truth, it’s just that liberals listen to the mainstream media which tells them that Fox News lies, so they believe it. Just like this blog twists the truth, the mainstream media twists the truth ,so the people don’t know what the REAL truth is unless they open their mind and listen to Fox. Fox presents both sides of an issue, they say “We report, You decide”, who else says that, not the mainstream media. They say that Fox is racist, but they have more black reporters than any other network.

    Reply
    • Billybob 44
      April 28, 2014

      What does the Walton’s have to do with anything, after all the Walton’s DON’T own WalMart anymore. But this site wants you to believe they DO so that they can bash the Walton’s because they are rich. And remember ALL rich people are evil!

      Reply
    • CoriAnder
      May 8, 2014

      Billy Bob, If you exposed yourself to PBS, C-SPAN, Al Jazeera/English, or read a few books on economics, “The NY Times”, “Wash. Post”, “Mother Jones” or listened to what politicians in the Senate and House, you might absorb some information and gain a bit of wisdom. And then you might stop voting against your own best interests, assuming you are not in the top 1 percent.

      Reply

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