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WWW.AZCENTRAL.COM 29,2015 1E INFOGRAPHIC BY ALIYA REPUBLIC AZEconomy REACH US KATHY TULUMELLO, BUSINESS EDITOR, KATHY.TULUMELLO@ARIZONAREPUBLIC.COM BUSINESS.AZCENTRAL.COM Semiconductorhad a solid 2014, oosting net income by 36 percentto $196 millionon revenue of $3.17 billion. Yet the Phoenix-based semiconductor company pay any income taxes on balance for the year, instead receiving a small net tax benefit of under $1million not unlike individuals who receive refunds after filing their returns this time of year. situation all that unusual, especially for manufacturing and technology firms that can take advantage of various credits, deductions and exclusions. While U.S. corporations face a statutory income-tax rate of 35 household-name companies occasionally pay much less than that.

Microchip Technologyof Chandler paid less than 9 percent in its most recent fiscal year; American Express paid 9 General Electric 10 percent. these types of examples that rekindle the debate on corporate income taxes traditionally a significant source of revenue for govern- ents but one that has become less important ver time. Uncle Sam collects only about 11per- entof its total tax revenue from this source, while Arizona is reducing its dependence by lashing the state corporate tax rate over four years. orporate income taxes are a political football that touches a lot of other areas globaliza- ion, American industrial competitiveness and even the rich-poor gap through the dou- le taxation of earnings. globalized economy, the structure of tax code is an important factor for businesses when they decide where to noted a eport written by Kyle Pomerleauand Andrew Lundeenat the Tax Found fiscally conservative group that wants to see the U.S.

cut its corporate rate. Nations tax usinesses at high rates ithout hurting their econ omic performance, they say. Compared with recession years like 2009 when big losses cut tax liabil- i ties, corporate income axes making as any headlines today with the economy improving. Yet the topic continues to percolate, espe- ially with so many multi- ationals flush with cash a nd profits near record- high levels. Critics of high taxes, including many Republicans, look at the 35 per- centrate and worry most important companies are burdened more than global rivals.

That 35 percent corporate rate is among the highest in the world. Critics also complain that net income earned by corporations is taxed twice once at the corporate level and again as profits flow through to shareholders as dividends and capital gains. That shareholders tend to be affluent adds a political twist: People in the top one-fifth of income earners pay 79 percentof corporate income-tax liabilities, making this one of the most progressive taxes around, according to a December report by the Congressional Research Service. But others point out that most corporations pay income taxes (including those to states and foreign governments) below the maximum rate, thanks to credits, deductions and exemptions. Effective corporate rates in the U.S.

are near the global average 27.1percentfor the U.S. against 27.7 percentfor other member nations of the Organization for Economic Cooperation and Devel- opment.Critics, including many Democrats, also wonder why some world-class corporations can get away with paying little if any income taxes, as sometimes happens. Even Apple most valuable corporation in the history of the planet, paid a mild 26 per- centin 2014. Rates vary A WalletHubstudy of the 100 most valuable U.S. corporations found that four Amgen, AIG, General Electric and Abbott Laboratories paid effective rates of 3 to 6 percent in 20 1 3, while Ford Motor got a tax study been updated with 2014 results.) But in general, big companies paid effective rates averaging 28.3 percent, alletHub said.

Exxon Mobil, CVS Health, Chevron and other companies paid rates near 40 percent. The number of top- 1 00 firms receiving refunds fell from six in 20 1 2 to just Ford Motor in 20 13. ax rates for individual companies bounce Taxes for Arizona companies The corporate tax rates paid by largest companies vary. Here are examples from 10 of the most valuable firms, howing total income-tax provisions divided by pretax income for 2014. Total taxes include those to federal, state and foreign entities.

INCOME-TAX TARGETS Cash-flush corporations at center of debate over whether they pay too little or too much RUSS WILES THE REPUBLIC i AZCENTRAL.COM SeeINCOME globalized economy the str ucture of a tax code is an important factor for businesses when they decide where to KYLE POMERLEAU A ND ANDREW UNDEEN REPORT FOR THE TAX FOUNDATION Business app wins GCU startup competition. E2 Jobs: Dialed in? Ways to ensure a civilized conference call. E6 Last week's results Dow Jones 17,712.66 NASDAQ 4,891.22 2,061.02 The annual filing of income-tax returns is probably the most common financial activityAmericans share. Not everyone files a tax return, but an experience undertaken by enough people to put this near the top. The Internal Revenue Service receives 150 millionindividual returns each year, which exceeds the number of households nationally.

Some family members file separately. ow pervasive are other mains tream financial pursuits and activ- i ties, from homeownership to participating in a 401(k) plan? Not as common a you might think, especially given that many of these activities have been hown to improve financial prosperity and wealth accumulation. Some exam- les: Bank connections While most Americans have bank or credit-union relationships, whether checking accounts, credit cards or omething else, not everyone. A 2013study by the Federal Deposit Ins urance Corp.estimated 8 percentof households had no bank accounts and another 20 percentwere meaning they had one or ore accounts but also relied on non- raditional services such as auto-title oans, payday lenders and nonbank check-cashing services. Most Americans probably take banking-system access for granted, but accounts can be tough to obtain or aintain for the jobless and those liv- i ng paycheck to paycheck.

Some peo- le also mistrust banks and worry about fees they might be charged. Peo- RUSS WILES YOUR MONEY Financial tools too many are skipping TRENTON, N.J.— The global phar- aceutical industry is pouring billions of dollars into developing treatments for rare diseases, which once rew little interest from major drug- makers but now point the way toward a new era of innovative therapies and big profits. The investments come as re- earchers harness recent scientific advances, including the mapping of the human genome, sophisticated and a ffordable genetic tests and laboratory robots that can screen thousands compounds per hour in search of the most potent ones. a very, very promising aid Jimmy Lin, a National Institutes of Health cancer researcher who co- founded the Rare Genomics Institute. By definition, a rare disease is one that strikes fewer than 200,000 Americans, sometimes only a few dozen.

But with 7,000 rare diseases known to doctors, and more emerging all the time, nearly 1in 10 Americans has a rare disease. For most, there is no treatment, let alone a cure. Just getting an accurate diagnosis often requires a medical dyssey, and 30 percent of children with a rare disease die before they reach age 5. or decades, drugmakers were re- uctant to invest in rare-disease treatments, preferring to focus on mass- market drugs for cholesterol, heart Behind the surge in rare disease drug research LINDA A. JOHNSON ASSOCIATED PRESS.