Sanders: GAO examine finds 34% of huge, worthwhile firms pay zero in federal earnings taxes

Vermont Enterprise Journal Thirty-four % of huge, worthwhile firms paid nothing in federal earnings taxes in 2018, the primary yr that the Trump tax cuts went into impact, based on a new examine ready for Senator Bernie Sanders (I-Vermont) by the Authorities Accountability Workplace (GAO). The GAO additionally discovered that, on common, giant, worthwhile American firms paid lower than 9 % of their earnings in federal earnings taxes in 2018.

“Whereas Home Republicans wish to make enormous cuts to Social Safety, Medicare and Medicaid due to their ‘severe concern’ concerning the deficit, they voted to offer over a trillion {dollars} in tax breaks to giant firms and the highest one %,” Sanders stated. “The state of affairs has change into so absurd that over a 3rd of the most important and most worthwhile firms in our nation pay nothing in federal earnings taxes. As a substitute of chopping important and common packages like Social Safety and Medicare, we have to repeal the Trump tax breaks for the wealthy and demand that the most important firms in America lastly begin paying their fair proportion of taxes.”

Whereas the GAO report doesn’t determine particular person corporations, a report from the Heart for American Progress final yr discovered that AT&T made $29.6 billion in 2021, however paid nothing in federal earnings taxes that yr. As a substitute, AT&T obtained a $1.2 billion refund from the IRS. Equally, the Institute on Taxation and Financial Coverage recognized 55 worthwhile Fortune 500 corporations.

The most recent GAO report is likely one of the first complete research exhibiting the large windfall that the Trump tax cuts gave to giant firms. The report finds the common tax fee for corporations in 2017 was 14.6 %, which dropped to only 8.9 % in 2018.

This report follows a 2016 GAO report requested by Sanders that discovered worthwhile American firms paid simply 14 % of their earnings in federal earnings taxes on common from 2008 by means of 2012, and about one-fifth of them paid nothing in any respect annually.

In 2021, Sanders and Rep. Jan Schakowsky (D-Ailing.) launched the Company Tax Dodging Prevention Act that may have restored the pre-Trump company tax fee of 35 % and comprehensively shut down offshore company tax avoidance. The provisions on this invoice to shut offshore loopholes alone might increase over $1 trillion in income from multinational corporations over the following decade.

To learn the report, click on right here.

BURLINGTON, Vt., Jan. 13, 2023 – Senator Bernie Sanders

Sanders: GAO examine finds 34% of huge, worthwhile firms pay zero in federal earnings taxes

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