How Fortune 500 Companies Avoid Paying Income Tax

The U.S. corporate tax rate was cut from 35% to 21%, thanks to the Tax Cuts and Jobs Act (TCJA).1 The U.S. tax rate is now much more competitive with other nations, but companies are continuously looking for ways to save money.

The passage of the Tax Cuts and Jobs Act (TCJA) has reduced the corporate tax rate from 35% to 21%.
Large multinational companies can still save billions of dollars by using foreign subsidiaries and tax havens.
Other methods used by Fortune 500 companies to reduce taxes include accelerated depreciation and stock options, while some industries even offer specific tax breaks.

The Real Tax Bill

The Institute on Taxation and Economic Policy (ITEP) found in a 2017 report that over the eight-year period from 2008 to 2015, 258 profitable Fortune 500 companies paid an average effective federal income tax rate of 21.2%—while the federal tax rate was 35% for all those years.2

— source | Matthew Johnston | Jan 27, 2021

Nullius in verba

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