60 large corporations paid $ 0 under Trump tax law

Large companies are coming out better than ever with the Trump tax law, the law on tax reduction and reduction.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "According to & nbsp;Institute analysis on taxation and economic policy& nbsp; (ITEP), 60 Fortune 500 companies avoided paying 100% of federal income tax in 2018 (their average effective tax rate is approximately 5%). "data-reactid =" 16 "> According to the Institute's analysis on Taxation and Economic Policy (ITEP), 60 Fortune 500 companies avoided paying 100% of federal income tax in 2018 (their average effective effective rate is around -5%).

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It's more than & nbsp;thrice& nbsp; number of companies that avoided paying corporate taxes on average from 2008 to 2015. During this period, 18 companies managed to pay 0% or less (their 8-year average effective about 4%). "Data-reactid =" 17 "> It's more than three times the number of companies that avoided paying corporate taxes on average from 2008 to 2015. During this period , 18 companies managed to pay 0% or less (with their average total effective rate over 8 years or about -4%).

"There are many loopholes and loopholes that allow a company not to pay," said Steve Wamhoff, director of federal tax policy at ITEP, Yahoo Finance. "People, when they think of tax reform, think that the government will correct the tax code, get rid of loopholes and loopholes and get rid of tax evasion. What we had at the end of 2017 was not that. It was the opposite of that. The law on tax cuts and jobs left many breaks and loopholes and created new ones. "

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<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In 2017, the effective tax rate of companies was 13.6% In 2018, companies paid & nbsp;only 7% of their profitsAccording to data provided to Yahoo Finance by Oxford Economics, "data-reaid =" 39 "> In 2017, the effective corporate income tax rate was 13.6%. 'had paid only 7% of their taxes.the profits as federal taxes, according to data provided to Yahoo Finance by the firm Oxford Economics.

This is the lowest effective tax rate since at least 1947.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""These companies benefited from a net reduction in corporation tax""data-reactid =" 41 ">"These companies benefited from a net reduction in corporation tax"

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Of the 60 companies that pay taxes for 2018, the first full year under the TCJA, Amazon (AMZN) tops the list with most of the income. In 2018, & nbsp;Amazon paid $ 0& nbsp; in taxes on a record profit of $ 11 billion. In 2018, the e-commerce giant was able to avoid paying taxes for the second year in a row. Data-reactid = "42"> Of the 60 companies that pay taxes for 2018, it is the first full year under the TCJA, Amazon (AMZN In 2018, Amazon paid 0 billion taxes on a record profit of 11 billion dollars, the second year in a row that the giant e-commerce could avoid paying taxes.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Amazon is added to the list by others large companies earning big profits, including Delta Airlines (DAL), Chevron (CLC), Netflix (NFLX) and General Motors (GM). "data-reactid =" 43 "> Amazon is added to the list by other big companies that make big profits, including Delta Airlines (DAL), Chevron (CVX), Netflix (NFLX) and General Motors (GM).

"Instead of paying $ 16.4 billion in taxes at the 21 percent corporate tax rate," noted ITEP, "these companies have benefited from a net repayment of 39; corporate tax of $ 4.3 billion ".

Under the TCJA, Trump's new tax law reduces the corporate tax rate from 35% to 21%. And some big companies that ended up paying taxes in 2018 paid a lot less than that.

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<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""They should really pay taxes "" data-reactid = "66">"They should really pay taxes "

Although this is not illegal, companies are often able to take advantage of a creative cocktail of tax credits, loopholes and exemptions.

"It's hard to know exactly what they're doing," Wamhoff said during his interview with Amazon. "In their public documents, they do not describe their tax strategy. So, we do not know exactly who breaks [the company is taking advantage of]. They vaguely say tax credits. One could imagine different ways for a company to proceed, such as the depreciation amortization that was extended under TCJA. "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Despite the new tax law, Wamhoff noted that n nothing new: many companies have avoided paying federal income tax & nbsp;over the yearsHe adds: "data-reactid =" 69 "> Despite the new tax law, Mr. Wamhoff pointed out that this was not new, and several companies have avoided paying federal taxes over the years. he declares.

"These companies have always been profitable," he said. "And they should really pay taxes."

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