How do you like the Trump tax law now? 60 Top Corporations Paid $0 Federal Taxes

[Indus]

https://www.huffpost.com/entry/60-biggest-companies-paid-no-taxes_n_5cb01f75e4b0ffefe3ae2626

President Donald Trump’s new tax law aided corporations so radically that twice as many companies paid no federal taxes whatsoever in 2018, despite billions of dollars in profit, according to a new study.

Amazon, Netflix, Chevron, Eli Lilly, Delta Airlines, General Motors, IBM and Goodyear were among the tax-free corporate titans, according to an analysis by the Institute on Taxation and Economic Policy, a Washington think tank, released Thursday.

The study found that 60 of some of the largest publicly held companies paid no taxes — compared with an average of about 30 each year from 2008 to 2015, before Trump and congressional Republicans passed the tax law that took effect in 2018. The measure heavily favors corporations and the wealthy.

The analysis is based on 2018 financial filings of the country’s largest 560 publicly held companies.

The companies that paid nothing in taxes were “able to zero out their federal income taxes on $79 billion in U.S. pretax income,” according to the study, first reported by the Center for Public Integrity and NBC News.

Corporations reaped the benefits of a tax rate slashed from 35% to 21% in Trump’s tax law, and exploited various deductions, tax credits and rebates.
“Instead of paying $16.4 billion in taxes, as the new 21 percent corporate tax rate requires, these companies enjoyed a net corporate tax rebate of $4.3 billion, blowing a $20.7 billion hole in the federal budget last year,” the Institute on Taxation and Economic Policy report says.

Farm equipment manufacturer John Deere, for example, reported earning $2.15 billion in U.S. income before taxes. It owed no U.S. taxes in 2018 and reported the government owes the company $268 million because of various deductions and credits, the report says.

The cut in the corporate tax rate alone will save corporations $1.35 trillion over the next 10 years, according to the Joint Committee on Taxation.




How do you like the tax law now? I think we should blame this on Migrants, lack of a border wall and sanctuary cities. /s

 

[purbeast0]

Now?

I hated it the second I started my taxes at the end of January and had over $20k in deductions less this year than last year.

 

[s0me0nesmind1]

And? Cry me a river. About 50% of ALL households pay nothing in Income tax. Cry me a river, and take it from the man people love to adore for teaching you idiots how to get out of debt.

 

[IronWing]

And? Cry me a river. About 50% of ALL households pay nothing in Income tax. Cry me a river, and take it from the man people love to adore for teaching you idiots how to get out of debt.

Did you ever think about how you address people and how it might lead folks to conclude that you're a twatwaffle?

 

[sactoking]

Yes, because a family of 6 making $40k per year ans paying no tax is the same as a corporation with a $billion in taxable profit paying no tax.

 

[fskimospy]

And? Cry me a river. About 50% of ALL households pay nothing in Income tax. Cry me a river, and take it from the man people love to adore for teaching you idiots how to get out of debt.

This statistic is cited by conservatives frequently and it is INSANELY misleading. Looking at federal income taxes alone shows this but if you instead look look at ALL money paid to the government through income taxes, sales taxes, fees, etc, the US tax system is just barely progressive. In the end the type of tax you're paying is irrelevant so this is the correct way to look at it.

This is an older chart but I see little reason why things would have changed considerably.

 

[UNCjigga]

Corporations are better than people. Special representation without taxation!

 

[senseamp]

And? Cry me a river. About 50% of ALL households pay nothing in Income tax. Cry me a river, and take it from the man people love to adore for teaching you idiots how to get out of debt.

You enjoy paying tech companies tax rebates because they issued restricted stock to their liberal employees like me? Thank you for your support.

 

[khon]

The only way this could change anyone's mind about the tax bill, is if they did not understand that this was the goal of the bill. The whole point was to lower the tax rate on companies, and shift it to people living in blue states.

 

[s0me0nesmind1]

This statistic is cited by conservatives frequently and it is INSANELY misleading. Looking at federal income taxes alone shows this but if you instead look look at ALL money paid to the government through income taxes, sales taxes, fees, etc, the US tax system is just barely progressive. In the end the type of tax you're paying is irrelevant so this is the correct way to look at it.

This is an older chart but I see little reason why things would have changed considerably.

No one is trying to misconstrue what taxes they pay.

Were clearly talking about federal taxes - don't try to misconstrue this as if we stated all taxes. Never did. Never indicated as such. It clearly states (as have I) that it is Federal Income Taxes.


Also, you indicated in previous topics about this subject that the answer to our budget problems isn't raising taxes on corporations, but rather increasing personal income taxes. Probably because unlike the OP in this thread (and plenty other morons here) you understand that our corporate tax rates are actually much more in line with other countries that we intend to idolize finally after the tax reform.

You understand that European countries that people love to give oral pleasure about heavily tax individuals - with MUCH higher income taxes (that includes for LOW incomes and middle class), as well as VAT taxes that are regressive as well.

 

[fskimospy]

No one is trying to misconstrue what taxes they pay.

Were clearly talking about federal taxes - don't try to misconstrue this as if we stated all taxes. Never did. Never indicated as such. It clearly states (as have I) that it is Federal Income Taxes.

Ramsey in that video was very, very clearly engaging in the 'half of people pay no taxes' game while not mentioning all the other taxes people pay.

If your point is going to be solely focused on federal income taxes with the understanding that all US households pay roughly the same percentage of their income in total taxes that's fine, but that's not what that video was about.

 

[senseamp]

No one is trying to misconstrue what taxes they pay.

Were clearly talking about federal taxes - don't try to misconstrue this as if we stated all taxes. Never did. Never indicated as such. It clearly states (as have I) that it is Federal Income Taxes.

Of course the right is trying to misconstrue when they talk about only federal income taxes and completely ignore payroll taxes, sales taxes, fees, tariffs, etc.
It's not an accidental omission.

 

[Jhhnn]

I'm confident that people in the lower 50% of incomes would gladly pay the same federal tax rates they paid in 1980 if they had the same share of national income they enjoyed back then. You know, before their share fell by 1/3.

I'm also confident that interjecting those taxes into a discussion of corporate taxes is pure diversion, as well.

 

[nakedfrog]

Beyond "they're just being smart and working the system/maximizing shareholder value", who thinks it's reasonable for a company that made $2 billion dollars to not only pay no federal taxes, but get a credit of $268 million paid out to them by the government?
And if you do think it's reasonable, please explain why.

 

[UNCjigga]

Beyond "they're just being smart and working the system/maximizing shareholder value", who thinks it's reasonable for a company that made $2 billion dollars to not only pay no federal taxes, but get a credit of $268 million paid out to them by the government?
And if you do think it's reasonable, please explain why.

I might be okay with giving companies tax credits against net new American jobs added. If companies added 100 net new workers to payrolls (and these jobs generated US payroll taxes, income taxes, SS etc.) they could get a credit against their tax burden.

 

[s0me0nesmind1]

Beyond "they're just being smart and working the system/maximizing shareholder value", who thinks it's reasonable for a company that made $2 billion dollars to not only pay no federal taxes, but get a credit of $268 million paid out to them by the government?
And if you do think it's reasonable, please explain why.

I don't know the specifics of the case you're referring to - and I'm sure there is more to it than it may initially appear such as reinvestment, R&D, etc...

But... to put it simply.... for those of you that can't yet realize this....

Companies can move. The majority of people (outside of the top 1%) can't. So.... yeah. Like I said, all those other countries you guys love to fondle over have MUCH higher taxes on individuals - including MUCH higher regressive VAT. They DO NOT have higher corporate tax.

 

[nakedfrog]

I might be okay with giving companies tax credits against net new American jobs added. If companies added 100 net new workers to payrolls (and these jobs generated US payroll taxes, income taxes, SS etc.) they could get a credit against their tax burden.

A refundable credit?

I don't know the specifics of the case you're referring to - and I'm sure there is more to it than it may initially appear such as reinvestment, R&D, etc...

But... to put it simply.... for those of you that can't yet realize this....

Companies can move. The majority of people (outside of the top 1%) can't. So.... yeah. Like I said, all those other countries you guys love to fondle over have MUCH higher taxes on individuals - including MUCH higher regressive VAT. They DO NOT have higher corporate tax.

I'm referring to the case mentioned in the OP.

 

[uallas5]

Before the tax cut the avg tax rate for large corporations was %14, no where near the %30 they were all bitching about. So a lot more are paying %0 or close to it...no big surprise when you cut the tax rate but can't bothered to do the hard work and close up all the loopholes.

 

[woolfe9998]

And? Cry me a river. About 50% of ALL households pay nothing in Income tax. Cry me a river, and take it from the man people love to adore for teaching you idiots how to get out of debt.

Because we're equally concerned about the poor and lower middle class not paying taxes as we are wealthy multi-billion dollar corporations. You just don't get it.

 

[ivwshane]

I heard Elizabeth Warren the other day bring up a proposal that I think it's really good. She said that if a corporation makes 100 million in profit according to their yearly financial statements that they release to investors and the paid zero in taxes there should be a minimum tax levied on that 100 million in profit.

 

[kage69]

I heard Elizabeth Warren the other day bring up a proposal that I think it's really good. She said that if a corporation makes 100 million in profit according to their yearly financial statements that they release to investors and the paid zero in taxes there should be a minimum tax levied on that 100 million in profit.

Unfortunately, that's the kind of action we need if we're to prevent the income disparity from getting worse and republicans turning this country into a bigger version of Mexico.

I'd support that, given that republicans have gone from patriotic supporters of their country to spineless greedy fucks, only too happy to screw their own if it turns them another buck. These are the bastards who think 9/11 first responders have been coddled, that funds they deserve would be better off given to foreign companies to promote domestic consolidation and outsourcing.

 

[HomerJS]

And? Cry me a river. About 50% of ALL households pay nothing in Income tax. Cry me a river, and take it from the man people love to adore for teaching you idiots how to get out of debt.

Nice comparison. Paying zero because you are poor vs paying zero because you are filthy rich.

 

[Fern]

I heard Elizabeth Warren the other day bring up a proposal that I think it's really good. She said that if a corporation makes 100 million in profit according to their yearly financial statements that they release to investors and the paid zero in taxes there should be a minimum tax levied on that 100 million in profit.

That's a stupid idea. (It's just another version of the corporate alternative minimum tax.)

One issue is that the accounting rules for financial statements are different that the "accounting" rules for determining taxable income. The former are promulgated by the various accounting boards, the latter are done by Congress. This is one reason why the 14% rate quote in post #18 above is misleading.
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As a tax CPA for nearly 40 years I can tell you that plenty of corporations did, in fact, pay the 30%.

The OP's article is useless as anything other than a political piece because it fails to address why so many of the large corporations, likely with a taxable profit (which we can't know for sure because we can't see their tax returns), pay no income tax. Part of the problem is huge tax credits available to large corporations. You can thank Congress for that, and those credits have been around far longer than Trump.

Lobbyists get paid big $'s for a reason.

Fern

 

[Indus]

That's a stupid idea. (It's just another version of the corporate alternative minimum tax.)

One issue is that the accounting rules for financial statements are different that the "accounting" rules for determining taxable income. The former are promulgated by the various accounting boards, the latter are done by Congress. This is one reason why the 14% rate quote in post #18 above is misleading.
----------------------------------------------

As a tax CPA for nearly 40 years I can tell you that plenty of corporations did, in fact, pay the 30%.

The OP's article is useless as anything other than a political piece because it fails to address why so many of the large corporations, likely with a taxable profit (which we can't know for sure because we can't see their tax returns), pay no income tax. Part of the problem is huge tax credits available to large corporations. You can thank Congress for that, and those credits have been around far longer than Trump.

Lobbyists get paid big $'s for a reason.

Fern

Assuming you're right, shouldn't Trump (at least have tried to) fix the problem?

 

[Fern]

Assuming you're right, shouldn't Trump (at least have tried to) fix the problem?

I think it's up to Congress. I'm not sure Trump knows the details of tax law.

The Dems are as guilty as the Repubs. We have a huge "green credit" (I can't remember its technical name atm) that the Dems support, and we have that awful tax treatment of the uber wealthy hedge fund managers. They live in NYC and Shumer won't allow anything to be done about it.

Fern