ITEP Finds Widespread Corporate Tax Avoidance

Despite earning over $105 billion in collective pretax income, “tax-avoiding corporations” paid no federal income tax according to an April 14 report from ITEP. Instead of paying the statutory 21% corporate tax rate, these companies received a total of $4.7 billion in tax rebates, resulting in a total tax break of $26.7 billion for the year, per the report.

The companies identified by ITEP as paying a 0% federal tax rate represent a wide range of industries. Among them are major household names, including Tesla, which paid no federal income tax on almost $5.7 billion of U.S. income, per the report. ITEP also found that United Airlines avoided all federal income tax on almost $4.3 billion in U.S. income, while Yum! Brands — the parent company of KFC, Pizza Hut, and Taco Bell — paid no federal income tax on over $1 billion in pretax profits. Other well-known companies are also listed in the report, including 3M, Citigroup, CVS Health, Walt Disney, and Duke Energy.

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