Joe Biden strives to increase taxes on companies
The Republican Congress passed a comprehensive tax bill in 2017, and President Donald J. Trump signed it into law, reducing the corporate tax rate from 35% to 21%. However, analysis shows that because a series of legal deductions and tax exemptions have become the main content of the tax law, many Fortune 500 companies can further reduce their tax bills, sometimes even to zero.
The report mentions Salesforce, Archer-Daniels-Midland, and Consolidated Edison, and these reports were conducted by the Tax and Economic Policy Institute of the Left-leaning Research Group in Washington.
The 26 companies on the list, including FedEx, Duke Energy and Nike, have been able to avoid paying any federal income tax in the past three years despite reporting total revenue of $77 billion. Many people also received millions of dollars in tax refunds.
Tax avoidance strategies include a combination of old standards and new innovations. For example, the company saved billions of dollars by allowing senior management to purchase discounted stock options in the future and then deducting their value as losses.
The Biden administration announced this week that it plans to increase the corporate tax rate to 28% and establish a minimum tax rate to limit the number of taxpayers who pay zero tax rate. The White House estimates that the amendment will raise $2 trillion in 15 years and will be used to fund the president’s ambitious infrastructure plan.