In 2020, fifty-five of the biggest, most profitable corporations in the U.S. paid zero taxes, while hundreds paid far less than the official 21% corporate tax rate. These corporations include FedEx, Dish Network, Duke Energy, Nike and other household names, as well as many less well-known businesses. Not only did these companies pay no taxes, twenty-six of them actually received tax rebates from the federal government!
Unfortunately, this reality is nothing new. Not only have corporations gamed the system for years, so have wealthy individuals. How do they do it? Many claim that their assets have lost value, many have “headquarters” outside of the United States, many write off executive pay packages, and many claim “losses” years into the future to get tax immediate tax write-offs.
The ability of these profitable corporations to pay no taxes highlights the rigged nature of the capitalist system. Big businesses and the wealthy shape our political system, which then allows them to avoid taxation. To paraphrase the old saying – while the working class and poor stay poor and get poorer, the rich use these systemic loopholes to stay rich and get richer.
Yet another example of why this system needs to go.