Big Companies Avoiding State Taxes
March 31, 2014- Tom
Pa. - As the deadline closes in on Pennsylvania lawmakers to pass another tight
budget, a report from the Institute for Taxation and Economic Policy shows that
profitable Fortune 500 companies around the country pay little in state
corporate income taxes. The report finds that companies constantly ask for more
tax breaks, even as most already have seen their state tax rates decline since
to Matt Gardner, director of the ITEP, some of those firms even collect refunds
after paying zero taxes.
think part of the reason you see so many companies asking for these corporate
handouts is that they know there's a track record of success," he said.
said he hopes the report serves as a reason for lawmakers to embark on
corporate tax reform, though he acknowledged that's a tough job, because, he
said, legislators often don't know what corporate taxes look like.
ludicrous that state lawmakers are being lobbied by these companies for further
tax cuts without knowing whether these companies are paying any corporate taxes
to begin with."
report examined tax records of 269 large corporations - all profitable - and
found that collectively, they avoided paying more than $73 billion in state
corporate taxes. Ninety of those companies, one in three, paid no state income
tax at all.
corporate income tax rate is 9.99 percent, which is one of the highest in the
country. A recent report from the Pennsylvania Budget and Policy Center
revealed that in recent years, some companies have been given tax breaks that
cut those corporate tax rates by two-thirds or more.
report, "90 Reasons We Need State Corporate Tax Reform," is at