SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
To donate by check, phone, or other method, see our More Ways to Give page.
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
"Here's the simple truth," Sen. Bernie Sanders (I-Vt.) said Thursday. "You can't be an American company only when it benefits you." (Image: Institute for Taxation and Economic Policy)
Undercutting President Donald Trump's assertion that U.S. corporate taxes are too high--the justification for his and Republican leaders' pitches to lower the business tax rate--a new report finds that many profitable American companies pay far less than the 35 percent often cited by lobbyists and GOP officials.
"For years, corporate lobbyists have claimed that they can't be competitive because the corporate tax rate is too high. They have a receptive audience for those complaints in the current Congress and Trump administration, but it doesn't make these claims any less false."
--Robert McIntyre, Citizens for Tax Justice
In fact, the analysis reveals, 18 of the country's most profitable corporations paid nothing in taxes between 2008 and 2015, and fully 100 companies enjoyed at least one year in which their federal income tax was zero or less.
"This study is a long-term, unprecedented examination of corporation taxes paid--or not paid--by the nation's biggest, most profitable firms," said Matthew Gardner, a senior fellow at the Institute for Taxation and Economic Policy (ITEP) and lead author of the report. "It reveals that many of the big corporations that are lobbying for a lower corporate tax rate to be more 'competitive' already pay substantially less than the 35 percent statutory rate."
Indeed, added Robert McIntyre, a co-author of the report and director of ITEP sister organization Citizens for Tax Justice (CTJ): "For years, corporate lobbyists have claimed that they can't be competitive because the corporate tax rate is too high. They have a receptive audience for those complaints in the current Congress and Trump administration, but it doesn't make these claims any less false."
The ITEP report, entitled The 35 Percent Corporate Tax Myth, additionally found:
The study looked only at companies that were consistently profitable over the eight-year period of 2008-2015. "By leaving out corporations that had losses (which means they wouldn't pay any tax), this report provides a straightforward picture of average effective tax rates paid by our nation's biggest and consistently profitable companies," the authors explained.
Such low tax payments were made possible by "copious loopholes in the tax code," the report said, including deferred payments on profits stashed offshore; the ability to write off executive stock options; and industry-specific tax subsidies that effectively function as tax breaks.
Spring-boarding off the report, Sens. Bernie Sanders (I-Vt.) and Brian Schatz (D-Hawaii) on Thursday introduced a bill in the Senate to eliminate tax breaks that encourage corporations to shift jobs and profits offshore and tax the $2.4 trillion that American firms currently hold in such tax havens at the full corporate rate of 35 percent. Rep. Jan Schakowsky (D-Ill.) introduced a companion bill in the House.
\u201cThe truth is that we have a rigged tax code that has essentially legalized tax dodging for large corporations.\u201d— Bernie Sanders (@Bernie Sanders) 1489077841
"Instead of giving a $550 billion tax break to corporate tax dodgers as President Trump has proposed," Sanders said in a statement, "our legislation will raise at least $1 trillion in new revenue over the next decade."
And while such reforms as the ones laid out in the lawmakers' Corporate Tax Dodging Prevention Act (pdf) are the ones that would actually make the U.S. tax code fairer, ITEP's Gardner expressed his fear that "when Congress engages on tax reform later this year, our leaders will prioritize damaging cuts in corporate tax rates while giving short shrift to needed loophole-closing reforms."
"[T]hese priorities are backwards," he said. "The starting point should be ending harmful corporate giveaways and requiring all profitable corporations to pay their fair share."
Donald Trump’s attacks on democracy, justice, and a free press are escalating — putting everything we stand for at risk. We believe a better world is possible, but we can’t get there without your support. Common Dreams stands apart. We answer only to you — our readers, activists, and changemakers — not to billionaires or corporations. Our independence allows us to cover the vital stories that others won’t, spotlighting movements for peace, equality, and human rights. Right now, our work faces unprecedented challenges. Misinformation is spreading, journalists are under attack, and financial pressures are mounting. As a reader-supported, nonprofit newsroom, your support is crucial to keep this journalism alive. Whatever you can give — $10, $25, or $100 — helps us stay strong and responsive when the world needs us most. Together, we’ll continue to build the independent, courageous journalism our movement relies on. Thank you for being part of this community. |
Undercutting President Donald Trump's assertion that U.S. corporate taxes are too high--the justification for his and Republican leaders' pitches to lower the business tax rate--a new report finds that many profitable American companies pay far less than the 35 percent often cited by lobbyists and GOP officials.
"For years, corporate lobbyists have claimed that they can't be competitive because the corporate tax rate is too high. They have a receptive audience for those complaints in the current Congress and Trump administration, but it doesn't make these claims any less false."
--Robert McIntyre, Citizens for Tax Justice
In fact, the analysis reveals, 18 of the country's most profitable corporations paid nothing in taxes between 2008 and 2015, and fully 100 companies enjoyed at least one year in which their federal income tax was zero or less.
"This study is a long-term, unprecedented examination of corporation taxes paid--or not paid--by the nation's biggest, most profitable firms," said Matthew Gardner, a senior fellow at the Institute for Taxation and Economic Policy (ITEP) and lead author of the report. "It reveals that many of the big corporations that are lobbying for a lower corporate tax rate to be more 'competitive' already pay substantially less than the 35 percent statutory rate."
Indeed, added Robert McIntyre, a co-author of the report and director of ITEP sister organization Citizens for Tax Justice (CTJ): "For years, corporate lobbyists have claimed that they can't be competitive because the corporate tax rate is too high. They have a receptive audience for those complaints in the current Congress and Trump administration, but it doesn't make these claims any less false."
The ITEP report, entitled The 35 Percent Corporate Tax Myth, additionally found:
The study looked only at companies that were consistently profitable over the eight-year period of 2008-2015. "By leaving out corporations that had losses (which means they wouldn't pay any tax), this report provides a straightforward picture of average effective tax rates paid by our nation's biggest and consistently profitable companies," the authors explained.
Such low tax payments were made possible by "copious loopholes in the tax code," the report said, including deferred payments on profits stashed offshore; the ability to write off executive stock options; and industry-specific tax subsidies that effectively function as tax breaks.
Spring-boarding off the report, Sens. Bernie Sanders (I-Vt.) and Brian Schatz (D-Hawaii) on Thursday introduced a bill in the Senate to eliminate tax breaks that encourage corporations to shift jobs and profits offshore and tax the $2.4 trillion that American firms currently hold in such tax havens at the full corporate rate of 35 percent. Rep. Jan Schakowsky (D-Ill.) introduced a companion bill in the House.
\u201cThe truth is that we have a rigged tax code that has essentially legalized tax dodging for large corporations.\u201d— Bernie Sanders (@Bernie Sanders) 1489077841
"Instead of giving a $550 billion tax break to corporate tax dodgers as President Trump has proposed," Sanders said in a statement, "our legislation will raise at least $1 trillion in new revenue over the next decade."
And while such reforms as the ones laid out in the lawmakers' Corporate Tax Dodging Prevention Act (pdf) are the ones that would actually make the U.S. tax code fairer, ITEP's Gardner expressed his fear that "when Congress engages on tax reform later this year, our leaders will prioritize damaging cuts in corporate tax rates while giving short shrift to needed loophole-closing reforms."
"[T]hese priorities are backwards," he said. "The starting point should be ending harmful corporate giveaways and requiring all profitable corporations to pay their fair share."
Undercutting President Donald Trump's assertion that U.S. corporate taxes are too high--the justification for his and Republican leaders' pitches to lower the business tax rate--a new report finds that many profitable American companies pay far less than the 35 percent often cited by lobbyists and GOP officials.
"For years, corporate lobbyists have claimed that they can't be competitive because the corporate tax rate is too high. They have a receptive audience for those complaints in the current Congress and Trump administration, but it doesn't make these claims any less false."
--Robert McIntyre, Citizens for Tax Justice
In fact, the analysis reveals, 18 of the country's most profitable corporations paid nothing in taxes between 2008 and 2015, and fully 100 companies enjoyed at least one year in which their federal income tax was zero or less.
"This study is a long-term, unprecedented examination of corporation taxes paid--or not paid--by the nation's biggest, most profitable firms," said Matthew Gardner, a senior fellow at the Institute for Taxation and Economic Policy (ITEP) and lead author of the report. "It reveals that many of the big corporations that are lobbying for a lower corporate tax rate to be more 'competitive' already pay substantially less than the 35 percent statutory rate."
Indeed, added Robert McIntyre, a co-author of the report and director of ITEP sister organization Citizens for Tax Justice (CTJ): "For years, corporate lobbyists have claimed that they can't be competitive because the corporate tax rate is too high. They have a receptive audience for those complaints in the current Congress and Trump administration, but it doesn't make these claims any less false."
The ITEP report, entitled The 35 Percent Corporate Tax Myth, additionally found:
The study looked only at companies that were consistently profitable over the eight-year period of 2008-2015. "By leaving out corporations that had losses (which means they wouldn't pay any tax), this report provides a straightforward picture of average effective tax rates paid by our nation's biggest and consistently profitable companies," the authors explained.
Such low tax payments were made possible by "copious loopholes in the tax code," the report said, including deferred payments on profits stashed offshore; the ability to write off executive stock options; and industry-specific tax subsidies that effectively function as tax breaks.
Spring-boarding off the report, Sens. Bernie Sanders (I-Vt.) and Brian Schatz (D-Hawaii) on Thursday introduced a bill in the Senate to eliminate tax breaks that encourage corporations to shift jobs and profits offshore and tax the $2.4 trillion that American firms currently hold in such tax havens at the full corporate rate of 35 percent. Rep. Jan Schakowsky (D-Ill.) introduced a companion bill in the House.
\u201cThe truth is that we have a rigged tax code that has essentially legalized tax dodging for large corporations.\u201d— Bernie Sanders (@Bernie Sanders) 1489077841
"Instead of giving a $550 billion tax break to corporate tax dodgers as President Trump has proposed," Sanders said in a statement, "our legislation will raise at least $1 trillion in new revenue over the next decade."
And while such reforms as the ones laid out in the lawmakers' Corporate Tax Dodging Prevention Act (pdf) are the ones that would actually make the U.S. tax code fairer, ITEP's Gardner expressed his fear that "when Congress engages on tax reform later this year, our leaders will prioritize damaging cuts in corporate tax rates while giving short shrift to needed loophole-closing reforms."
"[T]hese priorities are backwards," he said. "The starting point should be ending harmful corporate giveaways and requiring all profitable corporations to pay their fair share."