15 American companies avoided tax for around $25 bln earnings total in 2017, yesterday’s data showed. Among these firms are Amazon, Duke Energy and others.
The Institute on Taxation and Economic Policy’s report demonstrated that top companies with high profits have constantly reduced tax to be paid much earlier than the tax overhaul of past December.
All 15 firms had $24.5 bln of profits last year and they got almost $1.4 bln in U.S. Treasury rebates bringing down total taxation rate by 5.6%, as showed the report by the Institute that analyzed corporate income tax data.
The revamped U.S. taxation includes a decrease in the corporate income tax down to 21% from previous 35% effective from January, which will probably enable large companies to further lower tax to be paid. And though disclosures of the firms lack data to let establish the way how income taxes are being avoided, it is clear they took advantage of a number of tax breaks to reduce tax, the Institute said.
Thus Amazon with profit of $5.4 bln got $137 mln in rebate, which means lowering of tax rate by 2.5%, achieved through a tax break letting corporations to write off the executive share options value, according to the Institute.