More than 70% of Americans say that the fact that some corporations do not pay their fair share in taxes bothers them either some or a lot, according to a recent Pew Research Center survey. Though there is often disagreement about what the appropriate tax rate should be, most Americans agree corporations should pay more in taxes.
The statutory corporate federal tax rate on profits is supposed to be 21%, but through a string of loopholes, tax breaks, avoidance schemes, tax shelters, and other financial dealings, dozens of companies paid $0 in federal taxes on their profits in 2020.
To determine the companies that avoid paying taxes, 24/7 Wall St. reviewed the list of companies that paid $0 in income taxes for 2020, as compiled by the Institute of Taxation and Economic Policy. Companies were ranked based on their U.S. pre-tax income for the same year.
There are at least 55 companies with publicly available data that turned a profit in 2020 but did not pay a penny in taxes – and almost all of them actually received millions in tax rebates. The 55 companies earned a combined $40.5 billion and took in nearly $3.5 billion in rebates.
Had these companies paid the 21% rate, that would have pumped $8.5 billion into the government’s coffers. Though the U.S. collects more total tax revenue than any other country, it has one of the lowest tax revenue to GDP ratios among wealthy nations. These are the countries collecting the most taxes.
The companies that avoided paying taxes in 2020 represent a wide variety of industries, including technology, utilities, telecommunications, food and beverages, manufacturing, pharmaceuticals, and more. Some of these companies are among the largest and best known brands in the world, pulling in over a billion dollars per year. These are the most valuable brands in the world.
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