Multinational sportswear corporation Nike is among at least 26 corporations that have paid zero dollars in federal income taxes since 2018, a new report details.
Analysis conducted by the Institute on Taxation and Economic Policy reveals that in 2020, at least 55 of the nation’s biggest corporations paid nothing in federal income taxes. Of those 55 corporations, 26 have paid no federal income tax since 2018.
Last year, the 55 corporations enjoyed close to $40.5 billion in pre-tax income, according to the analysis. The corporations would have paid $8.5 billion collectively if they had paid the 21 percent tax rate for corporate profits.
Instead, the corporations received $3.5 billion in tax rebates and their total corporate tax breaks for last year total $12 billion.
Among the corporations paying nothing in federal income taxes in 2020 are Nike, Charter Communications, Dish Network, FedEx, HP, Salesforce.com, Telephone and Data Systems, Fiserv, Akamai Technologies, and Lincoln National.
Specifically, FedEx paid zero federal income tax on $1.2 billion in pre-tax income last year, while Nike paid zero federal income tax on $2.9 billion of pre-tax income. The Dish Network, with pre-tax income of $2.5 billion in 2020, also paid nothing, and Salesforce.com avoided federal income taxes on its $2.6 billion pre-tax income.
As noted, 26 of the 55 corporations have been able to escape all federal income tax since 2018, the analysis reveals. Between 2018 to 2020, these 26 corporations were profitable each year but paid nothing in federal income taxes on their collective $77 billion pre-tax income and $4.6 billion worth of tax rebates.
These corporations include Nike, Dish Network, FedEx, Salesforce.com, Telephone and Data Systems, and Mohawk Industries. Nike, for instance, paid no federal income tax between 2018 to 2020 on $4.1 billion of pre-tax income while FedEx paid no federal income tax on nearly $6.9 billion of pre-tax income in the same period.
The analysis comes after economists confirmed in 2019 that the wealthiest of Americans — billionaires and multi-millionaires — paid a lower tax rate than all other economic groups in the United States, including working and middle class Americans.
The nation’s top 400 highest earners in 2018, the economists found, paid a 23 percent tax rate, which is a combined tax payment that is less than one-quarter of their total income. Since 1950, the wealthiest of Americans’ tax rate has been slashed by 47 percentage points. In 1950, the highest earners paid a tax rate of 70 percent.