We’re Bailing Out Who? Corporate Tax Avoidance Remains Rampant Under New Tax Law

“The report finds that in 2018, 60 of America’s biggest corporations zeroed out their federal income taxes on $79 billion in U.S. pretax income. Instead of paying $16.4 billion in taxes at the 21 percent statutory corporate tax rate, these companies enjoyed a net corporate tax rebate of $4.3 billion.”

Corporate Tax Avoidance Remains Rampant Under New Tax Law

Read the follow-up report released in December 2019,
Corporate Tax Avoidance in the First Year of the Trump Tax Law.


60 Profitable Fortune 500 Companies Avoided All Federal Income Taxes in 2018

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For decades, profitable Fortune 500 companies have manipulated the tax system to avoid paying even a dime in tax on billions of dollars in U.S. profits. This ITEP report provides the first comprehensive look at how corporate tax changes under the 2017 Tax Cuts and Jobs Act affect the scale of corporate tax avoidance. The report finds that in 2018, 60 of America’s biggest corporations zeroed out their federal income taxes on $79 billion in U.S. pretax income. Instead of paying $16.4 billion in taxes at the 21 percent statutory corporate tax rate, these companies enjoyed a net corporate tax rebate of $4.3 billion.

Companies Represent Diverse Economic Sectors

The companies avoiding income taxes in 2018 represent a range of segments of the U.S. economy:

  • Computer maker International Business Machines (IBM) earned $500 million in U.S. income and received a federal income tax rebate of $342 million.
  • The retail giant Amazon reported $11 billion of U.S. income and claimed a federal income tax rebate of $129 million.
  • The streaming service Netflix paid no federal income tax on $856 million of U.S. income.
  • Beer maker Molson Coors enjoyed $1.3 billion of U.S. income in 2018 and received a federal income tax rebate of $22.9 million.
  • Automaker General Motors reported a negative tax rate on $4.3 billion of income.

All 60 companies’ effective federal income tax rates for 2018 are shown in the table below.

Company U.S. Income Federal Tax Effective Tax Rate Industry
Activision Blizzard $447447 $-228-228 -51%-51 Computers, office equip, software, data
AECOM Technology $238238.241 $-122-122 -51%-51 Engineering & construction
Alaska Air Group $576576 $-5-5 -1%-1 Transportation
Amazon.com $10,83510835 $-129-129 -1%-1 Retail & wholesale trade
Ameren $1,0351035 $-10-10 -1%-1 Utilities, gas and electric
American Electric Power $1,9431942.7 $-32-32 -2%-2 Utilities, gas and electric
Aramark $315314.921 $-48-48 -15%-15 Miscellaneous services
Arrow Electronics $167166.536 $-12-12 -7%-7 Retail & wholesale trade
Arthur Gallagher $322322.2 Financial
Atmos Energy $600600.069 $-10-10 -2%-2 Utilities, gas and electric
Avis Budget Group $7878 $-7-7 -9%-9 Motor vehicles and parts
Celanese $480480 $-142-142 -30%-30 Chemicals
Chevron $4,5474547 $-181-181 -4%-4 Oil, gas & pipelines
Cliffs Natural Resources $565565 $-1-1 0%0 Oil, gas & pipelines
CMS Energy $774774 $-67-67 -9%-9 Utilities, gas and electric
Deere $2,1522152 $-268-268 -12%-12 Industrial machinery
Delta Air Lines $5,0735073 $-187-187 -4%-4 Transportation
Devon Energy $1,2971297 $-14-14 -1%-1 Oil, gas & pipelines
Dominion Resources $3,0213021 $-45-45 -1%-1 Utilities, gas and electric
DTE Energy $1,2151215 $-17-17 -1%-1 Utilities, gas and electric
Duke Energy $3,0293029 $-647-647 -21%-21 Utilities, gas and electric
Eli Lilly $598597.612 $-54-54 -9%-9 Pharmaceuticals & medical products
EOG Resources $4,0674067.108 $-304-304 -7%-7 Oil, gas & pipelines
FirstEnergy $1,4951495 $-16-16 -1%-1 Utilities, gas and electric
Gannett $76.796 $-11-11 -164%-164 Publishing, printing
General Motors $4,3204320 $-104-104 -2%-2 Motor vehicles and parts
Goodyear Tire & Rubber $440440 $-15-15 -3%-3 Motor vehicles and parts
Halliburton $1,0821082 $-19-19 -2%-2 Oil, gas & pipelines
Honeywell International $2,8302830 $-21-21 -1%-1 Industrial machinery
International Business Machines $500500 $-342-342 -68%-68 Computers, office equip, software, data
JetBlue Airways $219219 $-60-60 -27%-27 Transportation
Kinder Morgan $1,7841784 $-22-22 -1%-1 Oil, gas & pipelines
MDU Resources $314314.004 $-16-16 -5%-5 Oil, gas & pipelines
MGM Resorts International $648648.268 $-12-12 -2%-2 Miscellaneous services
Molson Coors $1,3251325.1 $-23-23 -2%-2 Food & beverages & tobacco
Netflix $856856 $-22-22 -3%-3 Retail & wholesale trade
Occidental Petroleum $3,3793379 $-23-23 -1%-1 Oil, gas & pipelines
Owens Corning $405405 $-10-10 -2%-2 Miscellaneous manufacturing
Penske Automotive Group $393393.2 $-16-16 -4%-4 Motor vehicles and parts
Performance Food Group $192191.5 $-9-9 -4%-4 Retail & wholesale trade
Pioneer Natural Resources $1,2491249 Oil, gas & pipelines
Pitney Bowes $125125.471 $-50-50 -40%-40 Computers, office equip, software, data
PPL $1,1101110 $-19-19 -2%-2 Utilities, gas and electric
Principal Financial $1,6411640.6 $-49-49 -3%-3 Financial
Prudential Financial $1,4401440 $-346-346 -24%-24 Financial
Public Service Enterprise Group $1,7721772 $-97-97 -5%-5 Utilities, gas and electric
PulteGroup $1,3401340.338 $-44-44 -3%-3 Miscellaneous manufacturing
Realogy $199199 $-13-13 -7%-7 Miscellaneous services
Rockwell Collins $719719 $-16-16 -2%-2 Aerospace & defense
Ryder System $350349.782 $-23-23 -7%-7 Transportation
Salesforce.com $800800 Computers, office equip, software, data
SpartanNash $4039.591 $-2-2 -4%-4 Retail & wholesale trade
SPX $6666.04861538 $-5-5 -8%-8 Industrial machinery
Tech Data $203202.797 $-10-10 -5%-5 Retail & wholesale trade
Trinity Industries $138137.5 $-19-19 -14%-14 Miscellaneous manufacturing
UGI $550550 $-3-3 0%0 Utilities, gas and electric
United States Steel $432432 $-40-40 -9%-9 Metals & metal products
Whirlpool $717717 $-70-70 -10%-10 Electronics, electrical equipment
Wisconsin Energy $1,1391139.413924 $-218-218 -19%-19 Utilities, gas and electric
Xcel Energy $1,4341434 $-34-34 -2%-2 Utilities, gas and electric
TOTAL, These Companies $79,02579025.43254 $-4-4.329 -5%-5