Taxpayers are scrambling to make last-minute payments due to the Internal Revenue Service in just four days, but many of the country's largest publicly-held corporations are doing better: They've reported they owe absolutely nothing on the billions of dollars in profits they earned last year.
The controversial Tax Cuts and Jobs Act, signed by President Donald Trump in December 2017, lowered the corporate tax rate to 21 percent from 35 percent, among other cuts. That's partly to blame for giving corporations an easier way out of paying taxes, said Matthew Gardner, an ITEP senior fellow and lead author of the report. The new corporate tax rate"lowers the bar for the amount of tax avoidance it takes to get you down to zero," he said.
Moens credits his wife with getting their taxes filed early in February. They anticipated a refund, like in past years, because they overpaid during the year."It wasn't quite what Trump had said it was going to be," said Moens, who assembles farm planting tractors at the Moline factory."It was less than what we had received in previous years," although nothing had changed.
Corporations generally don't get"refund" checks as individuals do for overpaying. Instead, corporations calculate how much in taxes they owe by rolling up various deductions and tax credits that then lower the tax bill until, in many cases, they owe nothing in taxes or accrue a deficit, referred to as a rebate, that they use to offset taxes in the future.
Tax Foundation chief economist Kyle Pomerleau said the U.S. corporate tax law was"in need of reform." He said the new law reduced the U.S. rate to discourage companies from moving profits to countries with lower tax rates as well as allowing for certain deductions that encourage more immediate investment in factories and equipment.of profitable U.S. corporations that showed many paid zero taxes.
The Seattle-based retail and technology behemoth reported a federal tax rebate of $129 million on $10.8 billion in U.S. income before taxes. A number of companies accounted for the foreign profits payment in 2017 and 2018, resulting in significant tax bills.Under the new law, a company's income is only taxed in the country in which it is earned. The U.S. no longer taxes new foreign profits unless they reach a certain threshold, at which point the income is taxed at 10.5 percent, half that of the U.S. effective rate.
High business taxes equal less jobs, less pay... low business taxes equal better job market, more raises... PS. Remember under Obama's high business tax, how many companies left the US for other countries...
WypipoWhisperer Little to no taxes paid and prices still go up and wages go down. I love rollercoasters!😏
MJOJA So? I bet you took all the deductions you could. FAIRtax
realDonaldTrump your tax bill not helping the people
While millionaires, billionaires & corporations pay ZERO tax and/or get millions in tax refunds, ALL 99% rest of USA are paying MORE! IRS under withheld tax so we owe $1K—$2K more now! TrumpGOPTaxScam robbed working middle class Americans! BIGGEST HEIST since stealing presidency!
How special. (Said no one in the middle class)
More winning?
Including the Trump Organization no doubt!🙄
Taxpayers are scrambling to make last-minute payments due in a few days Screwed over by the Trump's tax cuts, in let me count the ways. Republi-con artists lowered the corporate rate from 35 to 21 percent Now major corporations with $ Billion earnings, doesn’t even pay a cent.
The Republicans agenda is to suck as much money as possible out of the government before the end of the Trump administration.
FAKE NEWS - Read the story! Another Divide and Conquer hit piece. NBC stories should come with warning 'Click Bait - Headlines and tag lines are misleading and/or false'.
...so when they say they can’t afford Social Security and Medicare...
Well of course. This happens Every time a Republican becomes President. Especially when it’s illegal via Russia, Jerry mandering, or declared by the SCOTUS. dumpgop
Which of course means ‘the average Joe’ will need to pay more taxes to support the Republican agenda. But since politicians shout ‘No tax increase,’ more deductions will soon disappear for the middle class. Had enough of ‘MAGA’ yet?
Not sure why this is surprising, the GOP tax cuts didn’t help me out.
Huh. Imagine THAT.
Grrrrrrr
Good
Trump supporters, do you still believe this was a “middle class” tax cut? And now they want to slash social security and we have a national debt that will take generations to pay back. Are you really ok with this
Just another bullshit...
Looks like a socialist government for the rich, don't figure.
Tell me again how people think Trump’s in it to help the average Joe. Ha! And remember people- the money to build that wall needs to come from somewhere (hint: low to middle American tax payers) ImpeachTheCrook
So messed up! The people pay their fair share. Why does billion dollar business get a free ride?! TrumpTaxScam
I guess the government will just have to print the difference like they always do anyways.
Horrible... People actually not giving money to an irresponsible government.
Including
Are you saying that bag of jean shorts and Chicago Bulls Championship t-shirts I dropped GoodwillIntl weren't worth $5k?
oh no.