A study conducted by the left-leaning Citizens for Tax Justice and the Institute on Taxation and Economic Policy has revealed that many of the country’s largest public traded companies are not paying any taxes even though they are earning huge profits. In some cases they are also claiming and getting money back from the government.
The study further shows that although the official federal corporate tax is 35% in the U.S., 280 profitable companies are paying taxes in the range of 41% to negative 58%. No federal income taxes were paid by 280 Fortune 500 companies or they enjoyed tax rebates in 2008, 2009 and 2010.
According to the study, 78 of the 280 companies did not pay any federal income taxes or they enjoyed a tax rebate in at least one of those years. It was revealed that in the years that they did not pay any tax, General Electric Co. and Pepsico Holdings earned a total of $156 billion in pretax U.S. profits. They even reported negative taxes to the tune of $22 billion as they received so many tax breaks.
The average effective tax rate for all the 280 companies for the three year period was 19% varying from company to company from a low negative 58% for Pepsico and a high of 41% for Coventry Health Care Inc. GE’s effective tax rate was negative 45% for that period.
Read More : Many Large Companies with Big Profits Not Paying Any Taxes
The study further shows that although the official federal corporate tax is 35% in the U.S., 280 profitable companies are paying taxes in the range of 41% to negative 58%. No federal income taxes were paid by 280 Fortune 500 companies or they enjoyed tax rebates in 2008, 2009 and 2010.
According to the study, 78 of the 280 companies did not pay any federal income taxes or they enjoyed a tax rebate in at least one of those years. It was revealed that in the years that they did not pay any tax, General Electric Co. and Pepsico Holdings earned a total of $156 billion in pretax U.S. profits. They even reported negative taxes to the tune of $22 billion as they received so many tax breaks.
The average effective tax rate for all the 280 companies for the three year period was 19% varying from company to company from a low negative 58% for Pepsico and a high of 41% for Coventry Health Care Inc. GE’s effective tax rate was negative 45% for that period.
Read More : Many Large Companies with Big Profits Not Paying Any Taxes
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