Some of the top profitable companies in the United States have not paid any federal corporate income taxes last year. As per a report, these companies avoided federal taxes thanks to a range of tax breaks. A report from the Institute on Taxation and Economic Policy (ITEP) said that over 50 companies avoided a total of USD 8.5 billion in tax avoidance and USD 3.5 billion in tax rebates in the most recent fiscal year. Some of the big names include Nike, Dish Network, and FedEx. The report also said that there are several companies that have not paid any federal income tax for at least three years. These firms have not paid any penny since the Tax Cuts and Jobs Act reform bill enforced as law in 2017.
According to the finding, FedEx and Duke Energy are among the companies that is part of this group. The shipping giant and the power company had around USD 15 million in pre-tax income for that period. The report said that most of these companies used loopholes in the federal tax law to increase their revenues. These companies got a fresh boon from the USD 2.2 trillion stimulus package announced by the government to overcome the coronavirus pandemic slowdown. However, Duke Energy said that it complied with all federal and state tax laws.
“As part of our commitment to make our investment that will benefit not only customers but communities, Duke Energy always complies with all tax laws,” said company spokesperson Catherine Butler. The spokesperson added that the company paid over USD 2 billion in annual state and local taxes last year. But several other big companies like Nike, Salesforce, Dish Network, and Michaels have not commented on the findings. The report in its finding also said that several companies used some more established methods to give themselves tax rebates. This included write-offs for paying company executives in stock.