FedEx and Nike are among those found to have avoided U.S. tax liability for three straight years.
Twenty-six Fortune 500 companies, including FedEx, paid no federal income tax for the last three years, a study found.Credit.Hunter Kerhart for The New York Times
April 2, 2021
Just as the Biden administration is pushing to raise taxes on corporations, a new study finds that at least 55 of America’s largest paid no taxes last year on billions of dollars in profits.
The sweeping tax bill passed in 2017 by a Republican Congress and signed into law by President Donald J. Trump reduced the corporate tax rate to 21 percent from 35 percent. But dozens of Fortune 500 companies were able to further shrink their tax bill sometimes to zero thanks to a range of legal deductions and exemptions that have become staples of the tax code, according to the analysis.
The coronavirus relief package that President Biden is expected to sign into law in the near future would cut taxes on average by about $3,000 in 2021 and would have the biggest impact on the after-tax incomes of low- and middle-income households,
Mr. Biden’s bottom-up $1.9 trillion aid package is a sharp reversal from the tax cut bill that was President Donald J. Trump’s first big legislative victory.
Why Full Expensing of R&D Should Remain in the Tax Code
Commentary
Ask 1,000 random people what the 2017 tax reform law did, and probably none of them would tell you about full expensing of business investments instead, they’d likely cite individual or corporate income tax reductions.
And yet, the ability to immediately deduct investment expenses was one of the most important pro-growth provisions in the entirety of the Tax Cuts and Jobs Act (TCJA). Now, though, it’s in danger of being phased out, unless Congress passes legislation sponsored by Rep. John Larson (R-Conn.) and other House Republicans to extend it.