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In 2020, 55 companies paid $0 in federal taxes, and stocks, CEO compensation soared



Federal income tax

In 2020, more than 50 listed companies will pay less than $0 in federal income tax. Joe Riddle/Getty Images

According to a published report, thanks to the coronavirus rescue plan and Trump-era tax cuts, the 55 largest companies in the United States, including Nike, FedEx, and Salesforce, are well-known in 2020 despite receiving billions of dollars. Of the profits, but did not pay federal income tax. Institute of Taxation and Economic Policy (ITEP) Friday.

The report surveyed listed companies in the Fortune 500 or the Standard & Poor’s 500 Index. According to the financial statements, the pre-tax income of these 55 companies in the United States last year totaled more than 40 billion U.S. dollars. If they pay the statutory federal corporate tax rate of 21%, they will pay a total of $8.5 billion this year.

Not only did these companies pay zero income tax, but many of them also received generous tax rebates, resulting in a sharp drop in the effective tax rate. In an extreme example, Treehouse Foods, a food processing company headquartered in Illinois, will not pay taxes on US$8 million in profits in 2020, while receiving a tax rebate of US$96 million. The company’s effective tax rate for the year was -1,167.1%.

Even more disturbing is that since the Republican tax bill came into effect, 26 of 55 companies including FedEx, Nike and Salesforce have not paid any federal income tax for three consecutive years. Former President Donald Trump lowered the standard corporate tax rate from 35% to 21%.

The CARES Act also helps. According to the ITEP report, the bill was passed in March last year and contains a “carry-forward” clause that allows companies to use losses in 2020, 2019, and 2018 to offset profits from previous years, thereby gaining a reduction in 2020 Annual tax rebate. .

The institute explained: “This means that the losses incurred in 2018, 2019 and 2020 can be offset against income taxed at the higher 35% tax rate effective before 2018.” “Profits at a rate, At the same time, losses are allowed to generate savings at a higher rate, which invites companies to play games and transfer profits and losses from a year or so to paper in order to reduce their taxes.”

Although the “CARES Act” aims to help businesses and households resist the economic impact of the COVID-19 pandemic, many companies that benefited from the company actually benefited from the booming stock market in 2020, and their stock prices The CEO’s salary has soared.

Notable companies paying federal income tax of $0 or less in 2020:

Federal Express

U.S. profit in 2020: $1.2 billion

Tax paid: $0

Tax refund: $230 million

2020 stock price changes: +138%

2020 CEO compensation: US$11 million (30% decrease from 2019)

Nike

U.S. profit in 2020: $2.9 billion

Tax paid: $0

Tax refund: US$109 million

2020 stock price changes: +38%

2020 CEO compensation: US$53 million (increased by 278% from 2019)

Sales force

U.S. profit in 2020: $2.63 billion

Tax paid: $0

Tax refund: US$12 million

2020 stock price changes: +33%

2020 CEO compensation: $26 million (down 9% from 2019)

life value

U.S. profit in 2020: $861 million

Tax paid: $0

Tax rebate: 24 million U.S. dollars

2020 share price movement: + 22%

2020 CEO compensation: $12.5 million (up 73% from 2019)

Michaels

U.S. profit in 2020: $322 million

Tax paid: $0

Tax refund: $11 million

2020 stock price changes: +61%

2020 CEO salary: undisclosed ($12 million in 2019)

DTE Energy

U.S. profit in 2020: $1.5 billion

Tax paid: $0

Tax refund: US$247 million

2020 stock price change: -6%

2020 CEO compensation: $11 million (increased by 29% from 2019)

55 large companies like Nike paid $0 federal taxes amid soaring CEO pay in 2020


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