Corporate tax avoidance remains rampant under new tax law
April 22, 2019

From the Institute on Taxation and Economic Policy:

For decades, profitable Fortune 500 companies have manipulated the tax system to avoid paying even a dime in tax on billions of dollars in U.S. profits. This ITEP report provides the first comprehensive look at how corporate tax changes under the 2017 Tax Cuts and Jobs Act affect the scale of corporate tax avoidance. The report finds that in 2018, 60 of America's biggest corporations zeroed out their federal income taxes on $79 billion in U.S. pretax income. Instead of paying $16.4 billion in taxes at the 21 percent statutory corporate tax rate, these companies enjoyed a net corporate tax rebate of $4.3 billion.

Companies Represent Diverse Economic Sectors

The companies avoiding income taxes in 2018 represent a range of segments of the U.S. economy:

  • Computer maker International Business Machines (IBM) earned $500 million in U.S. income and received a federal income tax rebate of $342 million.
  • The retail giant Amazon reported $11 billion of U.S. income and claimed a federal income tax rebate of $129 million.

Continue reading at ITEP's website... 

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