Corporate Taxes Fail to Follow Profit Rebound to Pre-2007

Corporate Taxes Fail to Follow Profit Rebound to Pre-2007

Johnson & Johnson’s cash tax bill dropped to $2.4 billion last year from $4.1 billion in 2007 while net income rose to $12.3 billion from $10.6 billion. That’s because of expansion in countries such as China, Brazil and India that have a lower corporate tax rate than the U.S., said Jeff Jonas, an analyst with Gabelli & Co. Photo: Emile Wamsteker/Bloomberg