The nonprofit group conducted a report and found out that between 2008 and 2012 no less than 288 American companies paid an average of 19.4 percent in taxes, while the statutory tax rate is 35 percent, RT reports.
In February 2014, Dave Camp, United States House Ways and Means Committee Chairman introduced a tax reform proposal which would reduce the maximum federal effective tax rate to 25 percent, the same source adds.
Citizens for Tax Justice (CTJ) concluded that 288 companies totaled $364 billion in tax subsidiaries, money which could have benefited the country. However, targeted companies accuse CTJ for not taking into consideration state and local taxes, RT states. CTJ also revealed that two thirds of the 288 analyzed companies “paid higher corporate tax rates” to governments outside the US where subsidiaries operate than the amount they paid to the American government.
The advocacy group completed its report by stating that one in 11 companies of the total of 288 paid a zero percent effective federal income tax rate and 93 of them paid a tax rate below ten percent, RT reports.
In a Senate speech, Senator Sanders stated that taxes should be paid not only by “working families, low-income people, the children, the sick, the elderly” but also by large oil companies like Exxon-Mobil and others, LiveScience stated. The same source offered examples like GE and Bank of America, enterprises which did not paid U.S. taxes in 2010, despite a profit worth billions of dollars. Tax breaks and loopholes allowed giant corporations to keep their profits intact.
1) Exxon Mobil made $19 billion in profits in 2009. Exxon not only paid no federal income taxes, it actually received a $156 million rebate from the IRS, according to its SEC filings. (Source: Exxon Mobil’s 2009 shareholder report filed with the SEC here.)
2) Bank of America received a $1.9 billion tax refund from the IRS last year, although it made $4.4 billion in profits and received a bailout from the Federal Reserve and the Treasury Department of nearly $1 trillion. (Source: Forbes.com here, ProPublica here and Treasury here.)
3) General Electric made $26 billion in profits in the United States over the past five years and, thanks to clever use of loopholes, paid no taxes.(Source: Citizens for Tax Justice here and The New York Times here. Note: despite rumors to the contrary, the Times has stood by its story.)
4) Chevron received a $19 million refund from the IRS last year after it made $10 billion in profits in 2009. (Source: See 2009 Chevron annual report here. Note 15 on page FS-46 of this report shows a U.S. federal income tax liability of $128 million, but that it was able to defer $147 million for a U.S. federal income tax liability of negative $19 million.)
5) Boeing, which received a $30 billion contract from the Pentagon to build 179 airborne tankers, got a $124 million refund from the IRS last year. (Source: Paul Buchheit, professor, DePaul University, here and Citizens for Tax Justice here.)
6) Valero Energy, the 25th largest company in America with $68 billion in sales last year, received a $157 million tax refund check from the IRS and, over the past three years, received a $134 million tax break from the oil and gas manufacturing tax deduction. (Source: the company’s 2009 annual report, pg. 112, here.)
7) Goldman Sachs in 2008 only paid 1.1 percent of its income in taxes even though it earned a profit of $2.3 billion and received an almost $800 billion from the Federal Reserve and U.S. Treasury Department. (Source: Bloomberg News here, ProPublica here, Treasury Department here.)
8) Citigroup last year made more than $4 billion in profits but paid no federal income taxes. It received a $2.5 trillion bailout from the Federal Reserve and U.S. Treasury. (Source: Paul Buchheit, professor, DePaul University, here, ProPublica here, Treasury Department here.)
9) ConocoPhillips, the fifth largest oil company in the United States, made $16 billion in profits from 2006 through 2009, but received $451 million in tax breaks through the oil and gas manufacturing deduction. (Sources: Profits can be found here. The deduction can be found on the company’s 2010 SEC 10-K report to shareholders on 2009 finances, pg. 127, here.)
10) Carnival Cruise Lines made more than $11 billion in profits over the past five years, but its federal income tax rate during those years was just 1.1 percent. (Source: The New York Times here.)