Companies had held off on paying income taxes on foreign earnings until those funds are returned, or repatriated, to the U.S. The 35% domestic rate has led several companies to stockpile profits abroad, leading to charges of tax avoidance.
Several profitable U.S. companies paid an effective tax rate far less than 35% between 2008 and 2015, due to the tax loopholes and special breaks they enjoy, according to the Institute on Taxation and Economic Policy.
In fact, 18 companies, including GE, Priceline (PCLN) and PG&E (PCG), paid no federal income taxes at all over that eight-year period despite consistently churning out profits, it added. Read more