Search FAIRtax.org

More Than 50 Major U.S. Corporations—Including Nike And FedEx—Paid No Federal Taxes Last Year

Piggy Bank by Pictures of Money is licensed under flickr Attribution 2.0 Generic (CC BY 2.0)
TOPLINE Benefitting from Trump-era tax cuts and capitalizing on loopholes in the tax code, at least 55 prominent U.S. companies paid $0 in federal corporate income taxes in 2020 on billions of dollars in profits, according to a report published Friday by the Institute on Taxation and Economic Policy.

KEY FACTS
 
  • Analysts determined that the 55 companies, all part of the S&P 500 or Fortune 500, would have paid a combined total of $8.5 billion last year if they had paid at a 21% rate (the statutory federal corporate tax rate) on their profits.
  • Not only did they avoid paying any taxes on their profits, but these companies also received $3.5 billion in tax rebates, according toITEP, a left-leaning, non-profit research group that analyzed each firm’s annual financial reports. 
  • Tax breaks for executive stock options, a provision allowing companies to write off capital investments, federal research and experimentation credits, and tax breaks for renewable energy were some of the legal deductions and exemptions utilized by these businesses to reduce their tax bill dramatically.
  • 26 of the 55 companies, including Nike, which reported more than $2.8 billion of pretax income last year, and FedEx, which generated $1.2 billion, avoided paying any federal income tax in each of the past three years, according to the report. 
  • In an emailed statement to Forbes, a FedEx spokesperson said, “The CARES Act, which was enacted in March 2020, helped companies like FedEx navigate a rapidly changing economy and marketplace while continuing to invest in capital, hire team members, and fund employee pension plans.”
KEY BACKGROUND:

In December of 2017, then-President Trump signed the Tax Cuts and Jobs Act into law, introducing far-reaching changes to the tax code. In addition to slashing the corporate rate from 35% down to 21%, the $1.5 trillion bill provided tax breaks to owners of pass-through companies, whose profits would be taxed through the individual code. Although tax returns are not made public, the Securities and Exchange Commission requires publicly traded companies to disclose pretax income. ITEP analysts were able to mine this data and other information released by each company to determine each corporation's effective tax rate. 

CONTRA:

Help FAIRtax Become The Number One Issue in 2021

Enacting the FAIRtax must be a prominent topic in these times. We did it before, we can do it again, but we need your help!

Your gift of $25, $50, $100 – even $1,000 or more if you can possibly spare it – will help FAIRtax.org bring an end to the IRS and promote a FAIRtax. So, I urge you, please give as generously as you can.
To donate by check:
Americans for Fair Taxation
PO Box 4929
Clearwater, FL 33758

If you need to make changes to your existing Monthly Re-Occurring Donation with new card or billing address information, then Please call Adam Yomtov our New York State Co-Director. He is assisting with the administration of our donations, technology services, and website.

Please note: Inputting your new information at our website won't update your donation. The only way to update is by calling Adam Yomtov 917-689-3931 mobile.


Americans for Fair Taxation® is a 501(c)(4) non-profit, non-partisan grassroots organization solely dedicated to replacing the current income tax system with a fair, simple and transparent national consumption tax – the FAIRtax® Plan. We rely entirely on contributions from concerned citizens like you who want a tax system that will generate jobs and stimulate the economy. Welcome to the FAIRtax team!

Connect

Share