Tax cuts are working well — for the rich
Editor, The News:
The rich get richer.
“Corporate Tax Avoidance Remains Rampant Under New Tax Law.” That’s a headline of a report by the Institute on Taxation and Economic Policy on the 2017 Tax Cuts and Jobs Act’s effect on how much big companies pay in taxes.
•60 profitable Fortune 500 companies avoided all federal income taxes in 2018.
•That’s zero taxes on a total of $79 billion in pre-tax income, not the $16.4 billion the current tax rate would have them pay.
•They actually got a net corporate tax rebate of $4.3 billion.
•Amazon — $11 billion in U.S. income; federal income tax rebate of $129 million.
•Netflix — $856 million in income; no federal tax paid.
•Molson Coors — $1.3 billion in income; federal income tax rebate of $22.9 million.
This stems from a variety of legal tax breaks available to businesses.
The GOP cut the corporate tax rate from 35 to 21 percent but didn’t address the loopholes that allowed some companies to pay less than the designated rate.
From ProPublica: The top 0.5 percent in personal income account for 20 percent of all under-reported income (based on a 2010 study). Adjusted for inflation, that’s more than $50 billion each year in unpaid taxes.
When Congressmen Mike Kelly, Senator Pat Toomey and the GOP say the Tax Cuts and Jobs Act is great they’re right – as long as you’re rich.
It sure looks like a con job for the rest of us.