If you paid anything in taxes last year, you paid a lot more than these companies.
If you paid anything in taxes last year, you paid a lot more than these companies.
The average American family making between $36,000 and $69,500 paid $15,748 in taxes to federal, state, and local governments in 2018. That’s an effective tax rate of 22.7%, for those making $69,500.
In 2020, Nike (NKE) - Get NIKE, Inc. Class B Report earned $2 billion—and paid nothing in taxes.
Tax-avoiding corporations run the gamut of industry and receive billions in tax rebates, according to the Institute on Taxation and Economic Policy, a non-profit, non-partisan tax policy organization.
The statutory federal tax rate for corporate profits is 21%, according to ITEP, and 55 corporations pulled in nearly $40.5 billion in U.S. pretax income in 2020. Instead of paying a collective total of $8.5 billion for the year (21%) they received $3.5 billion in tax rebates. That’s an effective tax rate of -8.6%.
Here are the 30 profitable companies that avoided all federal taxes in 2020, listed in order of highest pre-tax income, according to ITEP. Topping the list (including Nike) are Charter Communications (CHTR) - Get Charter Communications, Inc. Class A Report, Salesforce.com (CRM) - Get salesforce.com, inc. Report, and American Electric Power (AEP) - Get American Electric Power Company, Inc. Report.
Charter Communications
- U.S. pre-tax income: $3.68 billion
- Tax rebate: $7 million
- Effective tax rate: −0.2%
- Industry: Telecommunications
Nike
- U.S. pre-tax income: $2 billion
- Tax rebate: $109 million
- Effective tax rate: −3.8%
- Industry: Miscellaneous manufacturing
Salesforce
- U.S. pre-tax income: $2.63 billion
- Tax rebate: $12 million
- Effective tax rate: −0.5%
- Industry: Computers, office equip, software, data
Dish Network
- U.S. pre-tax income: $2.53 billion
- Tax rebate: $231 million
- Effective tax rate: −9.1%
- Industry: Telecommunications
American Electric Power
- U.S. pre-tax income: $2.16 billion
- Tax rebate: $138 million
- Effective tax rate: −6.4%
- Industry: Utilities, gas and electric
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Danaher
- U.S. pre-tax income: $1.58 billion
- Tax rebate: $321 million
- Effective tax rate: −20.3%
- Industry: Miscellaneous manufacturing
DTE Energy
DTE Energy
- U.S. pre-tax income: $1.53 billion
- Tax rebate: $247 million
- Effective tax rate: −16.1%
- Industry: Utilities, gas and electric
Xcel Energy
- U.S. pre-tax income: $1.47 billion
- Tax rebate: $13 million
- Effective tax rate: −0.9%
- Industry: Utilities, gas and electric
Consolidated Edison
- U.S. pre-tax income: $1.23 billion
- Tax rebate: $2 million
- Effective tax rate: −0.2%
- Industry: Utilities, gas and electric
Nucor
Nucor
- U.S. pre-tax income: $1.22 billion
- Tax rebate: $177 million
- Effective tax rate: −14.5%
- Industry: Metals & metal products
FedEx
- U.S. pre-tax income: $1.22 billion
- Tax rebate: $230 million
- Effective tax rate: −18.9%
- Industry: Miscellaneous services
Advanced Micro Devices
- U.S. pre-tax income: $1.21 billion
- Tax rebate: $0
- Effective tax rate: 0.0%
- Industry: Computers, office equip, software, data
FirstEnergy
- U.S. pre-tax income: $1.11 billion
- Tax rebate: $14 million
- Effective tax rate: −1.3%
- Industry: Utilities, gas and electric
Fiserv
- U.S. pre-tax income: $1.1 billion
- Tax rebate: $25 million
- Effective tax rate: −2.3%
- Industry: Financial data services
Unum Group
- U.S. pre-tax income: $923 million
- Tax rebate: $98 million
- Effective tax rate: −10.7%
- Industry: Financial
Hologic
- U.S. pre-tax income: $887 million
- Tax rebate: $62 million
- Effective tax rate: −7.0%
- Industry: Health care
CMS Energy
- U.S. pre-tax income: $885 million
- Tax rebate: $35 million
- Effective tax rate: −4.0%
- Industry: Utilities, gas and electric
PPL
- U.S. pre-tax income: $878 million
- Tax rebate: $9 million
- Effective tax rate: −1.0%
- Industry: Utilities, gas and electric
HP
- U.S. pre-tax income: $861 million
- Tax rebate: $24 million
- Effective tax rate: −2.8%
- Industry: Computers, office equip, software, data
Duke Energy
- U.S. pre-tax income: $826 million
- Tax rebate: $281 million
- Effective tax rate: −34.0%
- Industry: Utilities, gas and electric
Evergy
- U.S. pre-tax income: $722 million
- Tax rebate: $27 million
- Effective tax rate: −3.7%
- Industry: Utilities, gas and electric
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Qurate Retail Group
- U.S. pre-tax income: $687 million
- Tax rebate: $8 million
- Effective tax rate: −1.2%
- Industry: Internet services & retailing
Kinder Morgan
- U.S. pre-tax income: $654 million
- Tax rebate: $20 million
- Effective tax rate: −3.1%
- Industry: Oil, gas & pipelines
Booz Allen Hamilton Holding
- U.S. pre-tax income: $561 million
- Tax rebate: $3 million
- Effective tax rate: −0.5%
- Industry: Computers, office equip, software, data
Penske Automotive Group
- U.S. pre-tax income: $505 million
- Tax rebate: $78 million
- Effective tax rate: −15.5%
- Industry: Motor vehicles and parts
Verisign
- U.S. pre-tax income: $447 million
- Tax rebate: $124 million
- Effective tax rate: −27.7%
- Industry: Computers, office equip, software, data
ADM
Archer Daniels Midland
- U.S. pre-tax income: $438 million
- Tax rebate: $164 million
- Effective tax rate: −37.4%
- Industry: Food & beverages & tobacco
Lincoln National
- U.S. pre-tax income: $423 million
- Tax rebate: $61 million
- Effective tax rate: −14.4%
- Industry: Financial
UGI
- U.S. pre-tax income: $420 million
- Tax rebate: $85 million
- Effective tax rate: −20.2%
- Industry: Utilities, gas and electric
Kansas City Southern
- U.S. pre-tax income: $327 million
- Tax rebate: $2 million
- Effective tax rate: −0.6%
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