Corporate Tax Dodgers Celebrate Thanksgiving
CEOs of companies that pay no taxes celebrate while millions of Americans cannot afford a turkey for Thanksgiving.
“We give thanks for our multi-million dollar salaries, multi-billion dollar companies that pay no taxes, and for Republican crony politicians who keep cutting our taxes.”
How much are the corporations worth? How much do their CEOs get paid? How much did they donate to Republicans to get tax cuts for themselves? What does corporate greed have to do with kids going hungry on Thanksgiving?
Corporations versus kids
Corporate greed and Thanksgiving
Republicans in Congress passed a massive tax cut for corporations, reducing the basic corporate tax rate from 35% to 21%. Dozens of profitable corporations including Duke Energy, FedEx, and T-Mobile. paid no federal income tax in 2018-2020. – Popular Info
Democrats passed The American Rescue Act in 2021 that expanded the child tax credit. It kept 3.7 million children out of poverty and child poverty rates were cut in half to the lowest level on record. The monthly payments were spent “on basic household needs and children’s essentials: the most common item is food.”
Republicans and the U.S. Chamber of Commerce specifically argued against extending the expanded child tax credit, saying they was concerned about “large amounts of transfer payments that are not connected to work.” They won plunging millions of kids back into poverty.
Tax Dodging Corporations
“At least 55 of the largest corporations in America paid no federal corporate income taxes in their most recent fiscal year despite enjoying substantial pretax profits in the United States. This continues a decades-long trend of corporate tax avoidance by the biggest U.S. corporations, and it appears to be the product of long-standing tax breaks preserved or expanded by the 2017 Tax Cuts and Jobs Act (TCJA) as well as the CARES Act tax breaks enacted in the spring of 2020.
The tax-avoiding companies represent various industries and collectively enjoyed almost $40.5 billion in U.S. pretax income in 2020, according to their annual financial reports. The statutory federal tax rate for corporate profits is 21 percent. The 55 corporations would have paid a collective total of $8.5 billion for the year had they paid that rate on their 2020 income. Instead, they received $3.5 billion in tax rebates.” – ITEP
Corporations want more tax cuts
“While corporations are arguing that the immediate deduction of R&D expenditures is necessary to incentivize R&D spending, they are also urging Congress to make the change retroactive. They want the federal government to refund $29.1 billion in estimated taxes corporations paid this year. Since this R&D spending has already occurred, it is not an incentive but a corporate giveaway.
“We’re hoping, again, [that] we’re going to get a tax law change here at the end of the year with tax extenders which, as you know, will give us a refund of the $1.5 billion that we’ve already paid,” Raytheon CEO Gregory Hayes said during an earnings call last month. Raytheon had $3.9 billion in profits in 2021. It is projecting higher sales and profits for 2022.” – Popular Info
Take Away: Demand corporations pay their fair share of taxes.
Deepak
DemLabs
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Reposted from Democracy Labs with permission.
