Tax time comes once in April and again in October for the procrastinators.
And now that the second deadline has passed, the folks over at Wallet Hub got their hands on the filings from the 100 largest public corporations in America and determined which ones were paying Uncle Sam a pretty penny … and which were dodging taxes left and right.
It turns out that seven major U.S. corporations enjoy significantly lower taxes than most American individuals do, with one even paying a negative tax rate — that is, getting cash back from the IRS in tax year 2014!
Here are those seven tax dodgers:
- Morgan Stanley (MS), -2.5% tax rate in 2014
- Amgen (AMGN), 7.6%
- General Electric (GE), 10.3%
- General Motors (GM) 10.6%
- Mondelez International (MDLZ), 13.8%
- Celgene (CELG), 14.1%
- Qualcomm (QCOM), 14.2%
Now, to be fair, “corporate tax dodgers” may be a bit harsh. It’s not necessarily the fault of a company like Amgen that generous tax breaks exist for R&D, and if it’s there then why would they not take advantage of the $109 million windfall?
And, of course, the capitalists out there may argue that low taxes are always a good thing because they help businesses and ultimately help their workers and shareholders.
But it’s important to remember that according to the IRS, in tax year 2015 anyone making over $9,226 in taxable income will pay a higher tax rate than these corporations.
That’s pretty hard to wrap your head around, regardless of the reasons.
It’s also important to remember that the taxes from these corporations are crucial to supporting government spending and paying down existing U.S. debts, and every penny these companies don’t pay is a penny that regular citizens are going to have to pay in eventually.
For more detail on corporate tax rates in 2014, view the full report on Wallet Hub.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at email@example.com or follow him on Twitter via @JeffReevesIP.
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