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:
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.
More To Read
August 19, 2022
Decades of underfunding has left the child care sector on the brink of collapse
August 16, 2022
We applaud the swift passage of this historic legislation and will continue to advocate for investments in the care economy