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Fifteen (of Many) Reasons Why We Need Corporate Tax Reform

Posted by Matti Miranda on April 23, 2015 at 11:48 AM

A report from Citizens for Tax Justice published on April 9, 2015.

Companies From Various Sectors Use Legal Tax Dodges to Avoid Taxes

This CTJ report 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 in tax on billions of dollars in U.S. profits. These 15 corporations’ tax situations shed light on the widespread nature of corporate tax avoidance.  As a group, the 15 companies paid no federal income tax on $23 billion in profits in 2014, and they paid almost no federal income tax on $107 billion in profits over the past five years. All but two received federal tax rebates in 2014, and almost all paid exceedingly low rates over five years.

Companies Represent Diverse Economic Sectors

The companies profiled here represent a range of segments of the U.S. economy:

  • Broadcaster CBS Corporation enjoyed $1.8 billion in U.S. profits last year, and received a federal income tax rebate of $235 million.
  • Doll-maker Mattel, which has paid zero federal income taxes over the past five years, received a tax rebate of $46 million in 2014.
  • The financial services corporation Prudential avoided all federal income taxes on its $3.5 billion in U.S. profits in 2014.
  • Ryder System, which provides truck rentals and services, paid a negative 0.3 percent federal income tax rate in 2014 and over the past five years a negative 0.5 percent rate.
  • California-based utility PG&E had negative tax rates both in 2014 and over the five-year period.

Read the full story and download the report here: http://ctj.org/ctjreports/2015/04/fifteen_of_many_reasons_why_we_need_corporate_tax_reform.php