Corporations received a major tax break in 2017 when President Trump signed the Tax Cuts and Jobs Act, which lowered the corporate tax rate to 21% from 35%. But the CAP analysis found that many large businesses are paying much less than the statutory 21% rate — sometimes even driving their tax rate below zero, effectively getting a refund — thanks to loopholes such as deductions and write-offs.
"Our corporate tax code is broken when some of the biggest and most profitable companies in the country are paying little or no taxes," Seth Hanlon, a senior fellow at CAP and a co-author of the report, told CBS MoneyWatch. To be sure, corporations aren't breaking the law by using loopholes to lower their taxes, but it underscores the need for reform, Hanlon said."The fact there are so many holes in the corporate tax undermines the overall fairness of the tax code."Charter Communications said in a statement to CBS MoneyWatch that its low federal tax burden was due to $40 billion in investments in technology and infrastructure.
Insurance giant AIG pointed to a 2021 regulatory filing that stated that its effective tax rate on continuing operations was 18% that year. The CAP analysis doesn't include deferred taxes, which companies often self-report as part of their current effective tax rate, nor does it include foreign taxes. "In 2021, we reported $2.3 billion in federal income tax expense, $5.
That is absolutely insane & wrong & needs to be fixed ASAP!
Bull!
Their most profitable years in Brandon's first?
Broken by design by politicians.