Under President TrumpOpens a New Window.’s new tax law, 60 of America’s biggest corporations paid $0 in federal taxesOpens a New Window. in 2018, despite earning billions of dollars in profits.
AmazonOpens a New Window., NetflixOpens a New Window., General MotorsOpens a New Window., Chevron, JetBlue, IBM and U.S. Steel were all among the companies that avoided taxes last year using a diverse array of loopholes and tax breaks, according to a new report from the Institute on Taxation and Economic Policy, a nonpartisan think-tank.
The 2017 Tax Cuts and Jobs Act dropped the corporate tax rate to 21 percent from 35 percent, while also keeping intact most of the tax breaks that allow profitable companies to zero out what they owe.
“The result, unsurprisingly, has been a continued decline in our already-low corporate tax revenues: in fiscal 2018, U.S. corporate tax revenues fell by 31 percent, according to U.S. Treasury data,” the study said. “This was a more precipitous decline than in any year of normal economic growth in U.S. history.”
In total, the 60 companies paid no federal income tax on $79 billion in U.S. pretax income, according to the study. And instead of paying $16.4 billion in taxes at the 21 percent corporate rate, the companies received a corporate tax rebate of $4.3 billion.
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