At least 55 of the largest corporations in America paid no federal corporate income taxes on their 2020 profits, according to the Institute on Taxation and Economic Policy.
"There’s a bucket of corporate tax breaks that are deliberately in the tax code … . And overall, they cost the federal government roughly $180 billion each year. And for comparison, the corporate tax brings in about $370 billion of revenue a year,” Chye-Ching Huang, executive director of the NYU Tax Law Center
If the tax rate was 35% rather than the 21% due to Trump, and companies didn't get these tax breaks, they would have gotten almost a trillion dollars in revenue instead of $370 billion.
If you paid no taxes it simply means you made no profit and there could be various reasons for this.
No you won't get $1T companies will just go elsewhere.
Effective corporate tax rate is at an all time low. Due to tax breaks that enable corporations to get away with paying much less than 21%.
Getting away with paying less than the marked tax rate is a completely different issue.
It should be obvious that some other factor is at play seeing a downward trend in "effective" tax rate while the normal tax rate remains consistent.
The US government should be getting more than triple what they are now.
The government is only entitled to the tax that is in the law. If companies are breaking laws then fine them for that.
Or make changes to specific laws or tax breaks, not a blanket increase.
And don't tell me corporations can't afford it because that's absolute bull.
Companies like Amazon get away with paying only 5% tax while posting profits in the hundreds of billions.
Exactly my point. Companies "like Amazon"... There are many companies not like Amazon who are much more impacted by tax fluctuations than they are.
There should be a progressive tax scale for companies, perhaps there actually is.
Amazon taxes are low partly because they use all kinds of creative accounting or foreign holdings to shift profit around. Much like Apple etc. also does.
Disney for example did something similar in offsetting profit in one division against losses in another. They are currently being sued for this by the way.
Either way it's not because Trump dropped the tax to 21% that you saw these profit spikes. It was due to Covid specifically benefiting companies like Amazon.
If anything having a competitive corporate tax rate is more beneficial for a country in enticing companies to set up shop there.
Biden already signed a minimum corporate tax into law as part of his bloated, ironically named omnibus "Inflation Reduction Act" last year.
Many experts warned of the impact this will have and called it a terrible policy, in part because companies that have the most stock compensation will experience more substantial effects.
It also harm manufacturing companies more than say tech companies, who already have higher profit margins.
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