55 major companies, like Nike, paid $ 0 in taxes on their 2020 profits


That group of companies is made up of the top S&P 500 and Fortune 500 companies from a diverse range of sectors and industries, including Nike, Salesforce, FedEx, and Archer Daniels Midland.

Photo: NICOLAS ASFOURI / AFP / Getty Images

Dozens of the most Large US companies did not pay taxes on their 2020 profits.

According to the Institute for Fiscal and Economic Policy (ITEP), no fewer than 55 publicly traded companies avoided federal income taxes last year, despite reporting nearly $ 40.5 billion in combined earnings before taxes.

That group of companies is made up of the top S&P 500 and Fortune 500 companies from a diverse range of sectors and industries, including Nike, Salesforce, FedEx, and Archer Daniels Midland.

Of those 55 companies, 26 were identified by ITEP for not having paid federal income taxes for three consecutive years, despite having reported earnings in each of those years, and together having earned a combined $ 77 billion during that three-year period.

While noting that major US corporations have found loopholes protecting their profits from federal taxes “for decades,” the ITEP think tank cited the Trump administration’s Tax Cuts and Jobs Act of 2017 as having “failed to do so.” address loopholes that allow tax evasion ”.

That bill, that drastically reduced the corporate tax rate to 21% from 35% before, included a provision that allowed companies to immediately write off the cost of capital investments in equipment through “accelerated depreciation,” allowing many companies to reduce their tax liabilities, according to Forbes.

ITEP also said that “more than a dozen” companies used a tax break on executive stock options to reduce their taxes owed, while half a dozen rolled out a federal research and experimentation tax credit.

If those 55 companies had paid the statutory 21% corporate tax rate on their 2020 profits, your group tax bill last year would have amounted to $ 8.5 billion, ITEP said. Instead, they received a total of $ 3.5 billion in tax refunds.

The think tank’s report comes after President Biden unveiled his $ 2 billion infrastructure proposal this week, outlining plans to raise the corporate tax rate to 28% and raise taxes on foreign profits from companies. American companies.

Those proposed tax increases were received negatively by the nation’s business interest groups, such as the United States Chamber of Commerce and the Business Roundtable, who said the increases would run contrary to the goal of the US bill infrastructure to stimulate job creation and economic growth.

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