Corporate Tax Watch
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blog January 7, 2020 Guilty, Not GILTI: Unclear Whether Corps Continue to Lower Their Tax Bills Via Tax Haven Abuse
President Trump and GOP lawmakers often cited corporations’ abuse of tax havens, e.g. shifting profits offshore to avoid taxes, as justification for dramatically lowering the federal corporate tax rate under… -
blog December 19, 2019 Corporate Tax Avoidance Is Mostly Legal—and That’s the Problem
As usual, corporate spokespersons and their allies are trying to push back against ITEP’s latest study showing that many corporations pay little or nothing in federal income taxes. One way they respond is by stating that everything they do is perfectly legal. This is an attempt by the corporate world to change the subject. The entire point of ITEP’s study is that Congress has allowed corporations to avoid paying taxes, and that this must change.
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blog December 18, 2019 Why Corporate Tax Avoidance Matters
Corporate tax avoidance boosts companies’ bottom lines, and this benefits the owners of corporate stocks, which are mostly concentrated in the hands of the well-off. The cost of corporate tax dodging is borne by everyone, in several different ways.
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blog December 16, 2019 More of the Same: Corporate Tax Avoidance Hasn’t Changed Much Under Trump-GOP Tax Law
A new report from ITEP released today shows that, based on the first year of financial reports released by companies operating under the new tax law, tax avoidance appears to be every bit as much of a problem under the new tax system as it was before the Trump tax law took effect.
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report December 16, 2019 Corporate Tax Avoidance in the First Year of the Trump Tax Law
Profitable Fortune 500 companies avoided $73.9 billion in taxes under the first year of the Trump-GOP tax law. The study includes financial filings by 379 Fortune 500 companies that were profitable in 2018; it excludes companies that reported a loss.
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blog August 16, 2019 One Tax System for Most Americans, and a Second System for the Wealthiest
Last year, the Walton family’s fortune grew by $100 million a day. This level of wealth is particularly obscene in the context of the Walmart Corporation’s dark store strategy. The company works nationwide to reduce its property tax assessments, which, when successful, deprives local communities of revenue necessary to fund education, libraries, parks, public health and other services.
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blog June 4, 2019 Things Get Worse for Uber: Ride-Sharing Giant’s Taxes Under Scrutiny
Since Uber’s much-hyped initial public offering last month, the news has been relentlessly bad for the scandal-plagued ride-sharing company. The company’s share price has fallen by 8 percent from its… -
report April 11, 2019 Corporate Tax Avoidance Remains Rampant Under New Tax Law
For decades, profitable Fortune 500 companies have been able to manipulate the tax system to avoid paying even a dime in tax on billions of dollars in U.S. profits. This ITEP report provides the first comprehensive look at how the new corporate tax laws that took effect after the passage of the 2017 Tax Cuts and Jobs Act affects the scale of corporate tax avoidance.
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blog February 13, 2019 Amazon in Its Prime: Doubles Profits, Pays $0 in Federal Income Taxes
Amazon, the ubiquitous purveyor of two-day delivery of just about everything, nearly doubled its profits to $11.2 billion in 2018 from $5.6 billion the previous year and, once again, didn’t pay a single cent of federal income taxes.
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blog February 5, 2019 Netflix Posted Biggest-Ever Profit in 2018 and Paid $0 in Taxes
The popular video streaming service Netflix posted its largest-ever U.S. profit in 2018—$845 million—on which it didn’t pay a dime in federal or state income taxes. In fact, the company reported a $22 million federal income tax rebate.
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blog December 7, 2018 Morgan Stanley Report Confirms Tax Cut Promises Made Are Promises Unkept
Almost a year after lawmakers hastily enacted the Tax Cuts and Jobs Act, evidence continues to mount that it is providing far more tax cuts than jobs. A new Morgan… -
blog November 19, 2018 New ITEP Report on Depreciation Breaks: The Most Important Tax Giveaway that People Don’t Know About
Many Americans sense that the tax code is riddled with unnecessary and costly breaks for big business, but if asked to name one, few would reply “accelerated depreciation.” While they may seem arcane, tax breaks like “full expensing” and other types of accelerated depreciation are among the central problems in our tax code. A new report from ITEP makes the case that any serious tax reform would repeal or sharply curb these provisions.
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blog November 6, 2018 Amazon HQ2 Finalists Should Disclose the Financial Incentives They Promised
The Crystal City and Long Island City subsidy offers are among the many Amazon HQ2 bids that remain completely hidden. Citizens have no idea what their elected officials have promised to a company headed by the richest person on earth.
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blog May 2, 2018 Apple’s Three-Month Tax Savings under President Trump’s New Tax Law: $1.68 Billion
By now, it should come as no shock that profitable Fortune 500 corporations are reaping huge benefits from the corporate tax cuts enacted last December. But as first quarter earnings reports are released, we’re learning just how big.
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blog April 26, 2018 15 Companies Report Tax Savings of $6.2 Billion in First Three Months of 2018
In reports released over the past week, covering the first three months of 2018, a few of the biggest and most profitable Fortune 500 corporations acknowledge receiving billions in tax cuts in the first quarter of 2018 alone. Fifteen of these companies collectively disclosed reducing their effective tax rates by $6.2 billion compared to the rates they faced in the first quarter of last year.
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blog April 11, 2018 ITEP Resources on Amazon and the Online Sales Tax Debate
The U.S. Supreme Court is scheduled to consider a case next week (South Dakota v. Wayfair, Inc.) that has the potential to significantly improve states and localities’ ability to enforce their sales tax laws on Internet purchases.
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blog April 6, 2018 Is the Trump Organization’s Sales Tax Avoidance More Aggressive Than Amazon’s?
In recent weeks, President Trump has been raking Amazon over the coals for failing to collect state and local sales taxes on many of the company’s sales—a criticism that has some merit. But a new story first reported by James Kosur at RedStateDisaster, and then picked up today by the Wall Street Journal, provides fascinating insight into the sales tax collection habits of the Trump Organization’s “official retail website,” TrumpStore.com.
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blog April 3, 2018 Cities Fail to Disclose Tax Incentives in Bids for Amazon’s HQ2
The Amazon HQ2 project would be the biggest in U.S. history as measured in projected jobs, yet little is known about the incentives cities have offered Amazon to lure its second headquarters.
This lack of disclosure prevents public participation in the deal, including raising important questions about whether tax incentives that cities are offering are in the best short- and long-term interest of their residents. This is the main finding of Public Auction, Private Dealings: Will Amazon’s HQ2 Veer to Secrecy Create A Missed Opportunity for Inclusive, Accountable Development?, a Good Jobs First study released today.
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news release March 26, 2018 Amazon Maintains Sales Tax Advantage over Local Businesses
This report concludes that lack of consistent sales tax collection is contributing to an unlevel playing field for local businesses “because millions of shoppers are able to pay less tax if they choose to buy from out-of-state companies over the Internet rather than at local stores.” It recommends that states explore reforms to bring their sales tax policies into the digital age.
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brief March 26, 2018 Many Localities Are Unprepared to Collect Taxes on Online Purchases: Amazon.com and other E-Retailers Receive Tax Advantage Over Local Businesses
Online retailer Amazon.com made headlines last year when it began collecting every state-level sales tax on its direct sales. Savvy observers quickly noted that this change did not affect the company’s large and growing “marketplace” business, where it conducts sales in partnership with third-parties and rarely collects tax. But far fewer have noticed that even on its direct sales, Amazon is still not collecting some local-level taxes.
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blog March 14, 2018 Boeing Paid Tax Rate of 8.4% in Previous Decade, But Trump to Speak About Why It Needed His Corporate Tax Cut
For the second time in seven months, President Trump will visit a Boeing factory to hype corporate tax cuts. He’s chosen the wrong poster child. If there was something preventing the aerospace giant from expanding its business before the Trump-GOP tax law, it certainly wasn’t taxes.
Boeing made headlines in 2016 only because after years of paying zero in federal taxes, it finally paid something. Over 10 years (2008 to 2017), the company paid an effective federal tax rate of 8.4 percent on $54.7 billion of U.S. profits.
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blog March 9, 2018 Pounds, Dollars, It’s Still Comparative Crumbs for Workers
The tobacco company Reynolds American announced this week that its full-time employees will receive a one-time bonus of $1,000 in the wake of a sharp reduction in its British parent company’s tax bill.
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blog February 13, 2018 Amazon Inc. Paid Zero in Federal Taxes in 2017, Gets $789 Million Windfall from New Tax Law
The online retail giant has built its business model on tax avoidance, and its latest financial filing makes it clear that Amazon continues to be insulated from the nation’s tax system. In 2017, Amazon reported $5.6 billion of U.S. profits and didn’t pay a dime of federal income taxes on it. The company’s financial statement suggests that various tax credits and tax breaks for executive stock options are responsible for zeroing out the company’s tax this year.