Dozens of major U.S. companies shelled out more money to top executives than they paid in federal taxes: Report

Dozens of large U.S. companies paid more to their executives than they did in federal taxes from 2018 to 2022. new analysis Found from the Institute for Progressive Policy Studies (IPS) and Americans for Tax Fairness (ATF).

The report proposes that President Biden, based on the Tax Cuts and Jobs Act, raise the corporate tax rate to 28% from the 21% set in 2017 by his predecessor and 2024 presidential candidate Trump. It was announced inside.

The analysis by IPS and ATF looked at taxes and compensation for the first five years after President Trump’s tax cuts went into effect in 2018, and found that large companies are parlaying the favorable compensation packages they offer top executives into lower tax rates. It is intended to connect.

The analysis found that in at least two out of five years, 64 companies paid their top five executives more in compensation than the companies paid in federal taxes. Thirty-five of these companies, including big names like Ford and Tesla, paid their executives more than the following tax dues over a five-year period:

The analysis found that executive compensation at these 35 companies totaled $9.5 billion over five years, resulting in a total negative federal income tax of $1.8 billion.

“Both types of corporate fraud – underpaying taxes and overpaying executives – ultimately cost working families through reduced pay and diminished public services.” said David Kass, executive director of the United States for Tax Fairness.

Many companies have taken advantage of countless tax breaks and loopholes to pay lower tax rates than those set under the Trump tax bill. The average effective tax rate for large, profitable companies fell from 16% in 2014 to 9% in 2018, according to a 2022 analysis by the financial institution. Government Accountability Office.

Mr. Biden’s proposal, which also calls for higher taxes on individuals with a net worth of more than $100 million, is highly unlikely to pass the Republican-controlled House.

The president’s plan also drew harsh criticism from the U.S. Chamber of Commerce, a large pro-business lobbying group. spent nearly $70 million He is more interested in federal lobbying in 2023 than any other interest in Washington.

Neil Bradley, the group’s chief policy officer, told The Hill that while they haven’t seen the study, “it’s a political agenda that doesn’t understand how our tax system works. “It sounds like something that was done by people with.”

“Companies pay taxes on their profits after expenses. If a company does not make a profit or reinvests its profits into building new factories or paying employees higher wages, it is not taxed. There is no profit minus the costs incurred,” Bradley said.

“Of course, paying good wages to employees and building new factories is what we want from employers,” he added.

The Hill has reached out to Ford and Tesla for comment.

With many provisions of the 2017 tax law set to expire in 2025, the question of how to tax wealthy companies and individuals will play a central role in the next presidential election.

In his State of the Union address last Thursday, Biden said he wanted to raise the corporate tax rate “so that all big corporations finally start paying their fair share.”

“The way to make the tax code fair is to make big corporations and the very wealthy ultimately pay their share,” Biden said.

Updated at 3:54 p.m.