New Jersey Policy Perspective: Many of America’s Most Profitable Corporations Pay Little or No Federal Income Taxes
ITEP Work in ActionNew Jersey-based Honeywell, which in 2012 was awarded a state tax break of $40 million not to leave New Jersey, paid no federal corporate income taxes in 2009 and 2010, despite posting $3 billion in profits in those two years. Because of various tax breaks and loopholes, Honeywell’s effective federal corporate income tax rate in 2009 and 2010 was -17.2 percent. For the five-year period 2008-2012, Honeywell paid a federal corporate income tax rate of just 7.5 percent.