![]() corporations have found ways to shelter their profits from federal income taxation. No-Tax Corporations Continue a Decades-Long Trendįor decades, the biggest and most profitable U.S. Some publicly traded corporations paid nothing on profits in their most recent fiscal year but are not included in this report because they are not part of the S&P 500 or Fortune 500. Some companies with unusual fiscal years have not yet filed such reports. All data presented here come directly from the income tax notes of these reports. This report is based on ITEP’s analysis of annual financial reports filed by the nation’s largest publicly traded U.S.-based corporations in their most recent fiscal year. Their total corporate tax breaks for 2020, including $8.5 billion in tax avoidance and $3.5 billion in rebates, comes to $12 billion. Instead, they received $3.5 billion in tax rebates. The 55 corporations would have paid a collective total of $8.5 billion for the year had they paid that rate on their 2020 income. The statutory federal tax rate for corporate profits is 21 percent. pretax income in 2020, according to their annual financial reports. The tax-avoiding companies represent various industries and collectively enjoyed almost $40.5 billion in U.S. corporations, and it appears to be the product of long-standing tax breaks preserved or expanded by the 2017 Tax Cuts and Jobs Act (TCJA) as well as the CARES Act tax breaks enacted in the spring of 2020. ![]() This continues a decades-long trend of corporate tax avoidance by the biggest U.S. For more on corporate tax avoidance, read our July 2021 report, Corporate Tax Avoidance Under the Tax Cuts and Jobs ActĪt least 55 of the largest corporations in America paid no federal corporate income taxes in their most recent fiscal year despite enjoying substantial pretax profits in the United States. ![]()
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