September 5, 2014

Chicago Tribune: How Some of Illinois’s Largest Companies Cut Their Taxes

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The United States generally taxes the income of large corporations at 35 percent, one of the highest rates in the world. It has spurred companies such as Lake Forest-based Hospira to enter talks to buy a French company in a deal that would enable the drugmaker to move its headquarters to that country and lower its taxes.

North Chicago-based drugmaker AbbVie also plans such a move, a tactic so controversial that U.S. Sen. Dick Durbin and President Barack Obama have railed against the practice, known as an inversion.

Boeing’s deferral strategy has made it a target of such groups as Citizens for Tax Justice. The group and the Institute on Taxation and Economic Policy this year released a report in which Boeing was listed among companies that consistently were profitable but hadn’t paid taxes for years.

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