Workers at some of the biggest corporations in the world are paying higher tax rates than their employers, according to a new study by the Institute on Taxation and Economic Policy.
The Republican-passed tax cuts signed by President Trump in 2017 permanently lowered the corporate tax rate from 35 percent to 21 percent but many companies are paying nowhere near that figure. The study identified 379 Fortune 500 companies that turned a profit in 2019 and found that the companies paid an average tax rate of 11.3 percent.
At least 91 of the profitable Fortune 500 companies paid no taxes or had a negative tax rate, including giants like Amazon, Starbucks, Netflix and General Motors. Another 56 companies paid an effective tax rate of 2.2 percent. Just 57 of the companies the study looked at paid effective tax rates of 21 percent or higher. Continue reading