Building an Economy that Works for Everyone

10 companies in the Fortune 500 with lower income tax rates than the average American family

A new report from Citizens for Tax Justice (CTJ) illustrates how profitable Fortune 500 companies in a range of sectors of the U.S. economy have been remarkably successful in manipulating the tax system to avoid paying even a dime of tax on billions of dollars in profits.

As a group, the ten companies paid no federal income tax on $16 billion in profits in 2012, and they paid zero federal income tax on $57 billion in profits over the past five years. All paid exceedingly low rates over five years – in fact, all but one had a lower tax rate in 2012 than a median-income family of four:

effective-tax-rates-2012

While General Electric, Facebook, FedEx and Pepco are fairly well-publicized tax avoiders, the CTJ report report also includes:

  • The oil and gas exploration company Apache, which paid no tax on $7.6 billion in pretax income over five years, enjoying a $169 million tax rebate over that period.
  • Health-care giant Tenet Healthcare, which hasn’t paid a dime of federal income tax on $905 million in U.S. income over the past five years, receiving a tax rebate of $51 million.
  • In the airline sector, Southwest Airlines paid no federal income taxes on $673 million in U.S. income last year, and actually received an income tax rebate of $45 million.
  • The Principal Financial Group, an investment services provider, which avoided all federal income taxes on its $919 million in 2012.
  • Ryder System, which provided truck rentals and services, paid a negative 2.3 percent federal income tax rate in 2012 and a negative 4.7 percent rate since 2008.
  • The Interpublic Group, a marketing and communications firm, also had negative tax rates both in 2012 and over the five-year period.

Get the full report from Citizens for Tax Justice »

  • Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More To Read

May 24, 2024

Report: First Findings from the Legislature’s Wealth Tax Study

What the Department of Revenue has learned exploring wealth tax proposals from other states and countries

May 24, 2024

Why Seattle’s City Council is Considering Delivering Poverty Wages to Gig Workers

Due to corporate pressure, Seattle’s new PayUp ordinance might be rolled back just 6 months after taking effect

May 2, 2024

Baby Bonds: A Step Toward Racial and Economic Equity

The Washington Future Fund would bring this innovative, anti-racist policy to the Evergreen State