If you paid anything in taxes last year, you paid a lot more than these companies.
The average American family making between $36,000 and $69,500 paid $15,748 in taxes to federal, state, and local governments in 2018. That’s an effective tax rate of 22.7%, for those making $69,500.
In 2020, Nike (NKE) – Get NIKE, Inc. Class B Report earned $2 billion—and paid nothing in taxes.
Tax-avoiding corporations run the gamut of industry and receive billions in tax rebates, according to the Institute on Taxation and Economic Policy, a non-profit, non-partisan tax policy organization.
The statutory federal tax rate for corporate profits is 21%, according to ITEP, and 55 corporations pulled in nearly $40.5 billion in U.S. pretax income in 2020. Instead of paying a collective total of $8.5 billion for the year (21%) they received $3.5 billion in tax rebates. That’s an effective tax rate of -8.6%.
Here are the 30 profitable companies that avoided all federal taxes in 2020, listed in order of highest pre-tax income, according to ITEP. Topping the list (including Nike)? Charter Communications (CHTR) – Get Charter Communications, Inc. Class A Report, Salesforce.com (CRM) – Get salesforce.com, inc. Report, and American Electric Power (AEP) – Get American Electric Power Company, Inc. Report.
Charter Communications
U.S. pre-tax income: $3.68 billionTax rebate: $7 millionEffective tax rate: −0.2%Industry: Telecommunications
Nike
U.S. pre-tax income: $2 billionTax rebate: $109 millionEffective tax rate: −3.8%Industry: Miscellaneous manufacturing
Salesforce
U.S. pre-tax income: $2.63 billionTax rebate: $12 millionEffective tax rate: −0.5%Industry: Computers, office equip, software, data
Dish Network
U.S. pre-tax income: $2.53 billionTax rebate: $231 millionEffective tax rate: −9.1%Industry: Telecommunications
American Electric Power
U.S. pre-tax income: $2.16 billionTax rebate: $138 millionEffective tax rate: −6.4%Industry: Utilities, gas and electric
Danaher
U.S. pre-tax income: $1.58 billionTax rebate: $321 millionEffective tax rate: −20.3%Industry: Miscellaneous manufacturing
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DTE Energy
U.S. pre-tax income: $1.53 billionTax rebate: $247 millionEffective tax rate: −16.1%Industry: Utilities, gas and electric
DTE Energy
Xcel Energy
U.S. pre-tax income: $1.47 billionTax rebate: $13 millionEffective tax rate: −0.9%Industry: Utilities, gas and electric
Consolidated Edison
U.S. pre-tax income: $1.23 billionTax rebate: $2 millionEffective tax rate: −0.2%Industry: Utilities, gas and electric
Nucor
U.S. pre-tax income: $1.22 billionTax rebate: $177 millionEffective tax rate: −14.5%Industry: Metals & metal products
Nucor
FedEx
U.S. pre-tax income: $1.22 billionTax rebate: $230 millionEffective tax rate: −18.9%Industry: Miscellaneous services
Advanced Micro Devices
U.S. pre-tax income: $1.21 billionTax rebate: $0Effective tax rate: 0.0%Industry: Computers, office equip, software, data
FirstEnergy
U.S. pre-tax income: $1.11 billionTax rebate: $14 millionEffective tax rate: −1.3%Industry: Utilities, gas and electric
Fiserv
U.S. pre-tax income: $1.1 billionTax rebate: $25 millionEffective tax rate: −2.3%Industry: Financial data services
Unum Group
U.S. pre-tax income: $923 millionTax rebate: $98 millionEffective tax rate: −10.7%Industry: Financial
Hologic
U.S. pre-tax income: $887 millionTax rebate: $62 millionEffective tax rate: −7.0%Industry: Health care
CMS Energy
U.S. pre-tax income: $885 millionTax rebate: $35 millionEffective tax rate: −4.0%Industry: Utilities, gas and electric
PPL
U.S. pre-tax income: $878 millionTax rebate: $9 millionEffective tax rate: −1.0%Industry: Utilities, gas and electric
HP
U.S. pre-tax income: $861 millionTax rebate: $24 millionEffective tax rate: −2.8%Industry: Computers, office equip, software, data
Duke Energy
U.S. pre-tax income: $826 millionTax rebate: $281 millionEffective tax rate: −34.0%Industry: Utilities, gas and electric
Evergy
U.S. pre-tax income: $722 millionTax rebate: $27 millionEffective tax rate: −3.7%Industry: Utilities, gas and electric
Qurate Retail Group
U.S. pre-tax income: $687 millionTax rebate: $8 millionEffective tax rate: −1.2%Industry: Internet services & retailing
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Kinder Morgan
U.S. pre-tax income: $654 millionTax rebate: $20 millionEffective tax rate: −3.1%Industry: Oil, gas & pipelines
Booz Allen Hamilton Holding
U.S. pre-tax income: $561 millionTax rebate: $3 millionEffective tax rate: −0.5%Industry: Computers, office equip, software, data
Penske Automotive Group
U.S. pre-tax income: $505 millionTax rebate: $78 millionEffective tax rate: −15.5%Industry: Motor vehicles and parts
Verisign
U.S. pre-tax income: $447 millionTax rebate: $124 millionEffective tax rate: −27.7%Industry: Computers, office equip, software, data
Archer Daniels Midland
U.S. pre-tax income: $438 millionTax rebate: $164 millionEffective tax rate: −37.4%Industry: Food & beverages & tobacco
ADM
Lincoln National
U.S. pre-tax income: $423 millionTax rebate: $61 millionEffective tax rate: −14.4%Industry: Financial
UGI
U.S. pre-tax income: $420 millionTax rebate: $85 millionEffective tax rate: −20.2%Industry: Utilities, gas and electric
Kansas City Southern
U.S. pre-tax income: $327 millionTax rebate: $2 millionEffective tax rate: −0.6%Transportation
