August 5, 2022
Washington, DC – Senate Finance Committee Chairman Ron Wyden, D-Ore., today released new data provided by the Joint Committee on Taxation (JCT) showing the low effective tax rates paid by hugely profitable businesses that potentially would be subject to the minimum corporate tax, based on the income from the recent financial statements and the effective tax rate requirements.
In 2019, between 100 and 125 corporations had financial statement revenues of more than $1 billion and an effective tax rate of less than 5 percent. These companies had an average financial statement revenue of 8.9 billion dollars and paid an average effective tax rate of 1.1 percent.
“While we know that billion-dollar companies are avoiding paying their fair share, these tax rates are lower than we might imagine. Companies are paying very low rates while reporting record profits to their shareholders,” he said. Wyden said. “Up to 125 billion businesses pay effective tax rates of 1.1% on average, while nurses and firefighters pay much higher rates. It’s not right, and the American people are with us here . When you talk to working Americans, nothing gets their blood boiling like the most profitable mega-corporations paying little or no taxes. We’re going to end that with our 15 percent floor tax.”
The JCT analysis is available here.
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