Report: 91 Fortune 500 companies Paid No Federal Income Tax In 2018
A report released Monday by the Institute on Taxation and Economic Policy revealed that 91 Fortune 500 companies paid no federal income taxes last year, according to Axios.
Some of the companies that paid no federal income tax in 2018 still made billions of dollars and include some of the country’s biggest and most known names, such as Amazon, Chevron, Halliburton, and IBM.
President Donald Trump’s corporate tax cuts established a 21% corporate tax rate in 2017, yet the 379 members of the Fortune 500 paid an effective federal tax rate of 11.3% last year.
The companies used a combination of deductions, tax breaks, and other loopholes in order to be able to pay lower rates. If they had paid the statutory 21% rate on their profits, they would have collectively owed the federal government $73.9 billion.
Corporate tax revenue decreased from nearly $297 billion in 2017 to $204 billion in 2018, and has certainly contributed to the soaring federal deficit, which exceeded $1 trillion in the first 11 months of fiscal year 2019.