A brand new report by the Institute on Taxation and Financial Coverage found that 91 of Fortune’s high 500 firms paid no federal earnings taxes in 2018 — and plenty of truly obtained a refund.
The report studied the primary yr companies had been underneath the Tax Cuts and Jobs Act, signed by President Donald Trump in 2017. The act lowered company tax charges from 35% to 21% and added a wide range of deductions and different tax breaks. ITEP discovered, on common, America’s 400 largest firms ended up paying about 11%, which the left-leaning suppose tank says is the bottom price because it started finding out company tax charges in the 1980s.
The report doesn’t embrace state or native taxes that an organization might have paid.
One of many Bay Area-headquartered companies that reported zero federal earnings taxes is Salesforce, the cloud-computing software program firm. This isn’t the primary time Salesforce has been singled out, though CEO Marc Benioff just lately got here out in favor of rich people being extra closely taxed.
(See the Bay Area’s different zero-federal tax companies in the gallery above.)
“It’s time for a brand new capitalism — a extra truthful, equal and sustainable capitalism that really works for everybody and the place companies, together with tech companies, don’t simply take from society however actually give again and have a constructive influence,” Benioff wrote in an New York Occasions op-ed in October.
It is also change into a campaign-trail difficulty. In April, Sen. Bernie Sanders bashed Trump’s tax regulation at a Fox Information city corridor occasion.
“Amazon, Netflix and dozens of main firms, on account of Trump’s tax invoice, pay nothing in federal taxes,” Sanders stated. “I feel that’s a shame.”
As well as, ITEP stories that Wells Fargo obtained over $16 billion in tax breaks in 2018, as did Financial institution of America, J.P. Morgan Chase, Amazon and Verizon.
“The tax breaks recognized in this report are extremely concentrated amongst just a few very giant firms. Simply 25 companies claimed $37.1 billion in tax breaks in 2018. That’s virtually precisely half the $73.9 billion in tax subsidies claimed by all 379 companies in our examine,” ITEP wrote.
Based on the report, if the 91 companies that paid nothing had contributed federal earnings taxes in 2018, they’d have generated $73.9 billion.
The federal deficit this yr ballooned to just about $1 trillion.
Katie Dowd is an SFGATE Senior Digital Editor. E-mail: firstname.lastname@example.org | Twitter: @katiedowd