(AmericanProsperity.com) – The passing of Trump’s tax cuts has allowed big corporations such as Netflix and General Motors to pay as little as $0 for their taxes.
A quarter of businesses are paying rates in the single digits while 23 different corporations are paying nothing. The law was passed in 2017 and cut the corporate tax income from 35% to 21%. However, a new assessment published by the Institute on Taxation and Economic Policy found that in the last five years that the law has been passed, these corporations have paid far less than that.
The lowest taxpayers included Netflix and Nike, even though their businesses were profitable, they were not paying anything close to the required 21%. Matt Gardner from ITEP said, “The biggest and most profitable companies don’t appear to be paying anywhere close to that 21% rate.”
The CEO of Bank of America has been named the “king of stakeholder capitalism” and he’s not been the only one to speak on this or incorporate it into their business ideas. “It’s time for a new kind of capitalism: stakeholder capitalism, which recognizes that our companies have a responsibility to all our stakeholders,” Marc Benioff, co-founder of Salesforce said. SalesForce allegedly made $6 billion in profits but only paid $175 million in taxes.
“There appears to be a substantial overlap between the companies that are routinely avoiding corporate income taxes and the companies whose leaders seem to have laudable charitable aims,” said Gardner.
The ITEP report states that the companies listed aren’t breaking the law. “Tax avoidance occurs because Congress chooses to allow it. Either by enacting special exceptions and breaks from the regular tax rules or by leaving in place loopholes that are clearly being exploited,” the report reads. Following this, Congress is considering even more tax exemptions that could lead to more tax cuts.
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