March 19, 2014 09:49 PM | Permalink |
As states struggle with tough budget decisions about funding essential public services, profitable Fortunate 500 companies are paying little or nothing in state income taxes thanks to copious loopholes, lavish giveaways and crafty accounting, a new study by Citizens for Tax Justice and the Institute on Taxation and Economic Policy reveals.
The study, 90 Reasons We Need State Corporate Tax Reform,comes on the heels of a CTJ/ITEP report that found many Fortune 500 companies also pay extraordinarily low or no federalincome tax. Many profitable companies also are exploiting state loopholes to avoid paying corporate income taxes, and some are even actively pushing for more state tax breaks.
The state study examined 269 Fortune 500 companies that were profitable every year between 2008 and 2012. Some of the report’s key findings:
- 90 companies paid no state income tax at all in at least one year, and 38 companies avoided taxes in two or more years.
- 10 companies, including Boeing, Merck, Rockwell Automation, paid no state income tax at all over the five-year period covered by the study.
- The average weighted state corporate income tax rate is 6.25 percent, but the 269 companies paid an average rate of just 3.06 percent.
- The companies examined collectively avoided paying $73.1 billion in state corporate income tax.
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