Tesla and 113 other companies paid no current federal income tax, but they still aren’t the biggest threats to the federal deficit, think tank warns
Source: Fortune ·
The Institute on Taxation and Economic Policy found more than 700 profitable companies paid less than half of the 21% statutory corporate tax rate, the lowest rate in decades.
From the source
The effective corporate income tax rate is now the lowest it’s been in decades, and a tapering revenue source for the U.S. government is raising concerns among some policy experts. More than 700 profitable corporations paid 10.4% in current federal income taxes last year, according to a recent report from the Institute on Taxation and Economic Policy (ITEP), a progressive think tank—less than half of the 21% statutory federal corporate income tax rate. More than 250 of those companies paid effective tax rates below 7%, and 114 companies—including Tesla, Walt Disney, United Airlines, and DoorDash—paid no current federal income taxes, the report said. ITEP calculated these tax rates based on analyses of annual financial reports filed to the Securities and Exchange Commission (SEC), and not IRS data, which lags behind SEC filings. Corporate tax revenue has plummeted under the Trump administration, which has ushered in a series of tax breaks meant to boost capital investments, even as…