Forbes: The Incredible Shrinking Corporate Tax Rate Continues to Hit New Lows for These Business Giants
media mentionRemember how the Tax Cuts and Jobs Act of 2017 lowered the corporate tax rate from 35% to 21% but was going to eliminate loopholes and workarounds to avoid being one giant giveaway to large companies?
Well, about that—a funny thing happened on the way to the U.S. Treasury. The biggest corporations enjoyed an average effective tax rate of 11.3%—the taxes a company ends up actually paying—according to a new study from the Institute on Taxation & Economic Policy (ITEP). The low rate is one of the reasons deficit spending soared from $666 billion in the federal government’s 2017 fiscal year to $779 billion in 2018 and $984 billion in 2019.