30 top firms paid no U.S. income tax
WASHINGTON, D.C. (Nov. 3) — A comprehensive new study that profiles 280 of America’s most profitable companies finds that 78 of them paid no federal income tax in at least one of the last three years. Thirty companies, including The Boeing Co., enjoyed a negative income tax rate over the three-year period, despite combined pre-tax profits of $160 billion. These are among the findings in “Corporate Taxpayers and Corporate Tax Dodgers, 2008-2010,” released today by Citizens for Tax Justice and the Institute on Taxation and Economic Policy.
Over the 2008-2010 period studied, the 280 companies earned nearly $1.4 trillion in pre-tax profits in the United States. Had all those profits been reported to the IRS and taxed at the statutory 35% corporate income tax rate, then the 280 companies would have paid $473 billion in income taxes over the three years. But instead, the companies as a group paid about half that amount as they took advantage of enormous corporate tax subsidies. Of the 280 Fortune 500 companies studied, Boeing’s $3.6 billion in tax subsidies over the three-year period ranked 7th biggest, behind Wells Fargo, AT&T, Verizon Communications, GE, IBM and Exxon Mobil.
“These 280 corporations received a total of nearly $223 billion in tax subsidies,” said Robert McIntyre, Director at Citizens for Tax Justice and the report’s lead author. “This is wasted money that could have gone to protect Medicare, create jobs and cut the deficit.”