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Friday, November 4, 2011

Thirty of biggest U.S. companies paid ZERO income tax over last three years - despite making combined profits of $160billion - 4th Nov 2011

Minimal input: Four major industries paid less than 10 per cent tax in 2010

Thirty large and profitable U.S. corporations paid no income taxes from 2008 through to 2010, despite making combined pre-tax profits of $160billion, a report out today said.

A comprehensive analysis of 280 corporations on the Fortune 500 list found that their tax subsidies amounted to $222.7bn in the last three years.

The report, from Citizens for Tax Justice and the Institute on Taxation and Economic Policy, arrives as Congress faces rising demands for tax reform but seems unable or unwilling to act.

Pepco Holdings Inc, a Washington, D.C.-area power company, had the lowest effective tax rate, at negative 57.6 per cent, among the 280 Fortune 500 companies studied.

The statutory U.S. corporate income tax rate is 35 per cent, one of the highest in the world; but over the 2008-2010 period, very few of the companies studied paid it, said the report.

The average effective tax rate for the companies over the period was 18.5 per cent, said Citizens for Tax Justice and the Institute on Taxation and Economic Policy, both think tanks. Read More