As the article explains this is the “effective” tax rate and it is at 12.1 percent o
f profits, lowest level since 1972. The companies end up having negative income tax rates and if you look at the list, GE, is on there and there have been many articles on the web recently about how they pay very little taxes in the US. Rounding out at number 10 is Tenet and of all companies on there, they probably need the break as hospitals all over the US today are struggling to stay alive and profitable.
Last year Community Health tried an unsuccessful take over of Tenet. BD
Tenet Tells Community Health Thanks But No Thanks in Response to Their Submission of 10 Nominees for Tenet’s Board of Directors
Instead of giving money to the government, it turns out more than a few U.S. companies are actually making money off their income taxes.
In a recent report by the Citizens for Tax Justice (CTJ) and the Institute on Taxation and Economic Policy, 26 of 30 Fortune 500 companies examined had negative income tax rates on profits made in the U.S. between 2008 and 2011 (h/t Think Progress).
Due to these tax breaks, companies such as General Electric, Boeing and Verizon made more money after taxes from 2008 to 2011 than they did before filing them, according to the report. The 30 companies in the report made almost $6.5 billion on their taxes over the same time period. Conversely, if they had paid a tax rate of just 35 percent during that time, they would have provided the federal government with $78.3 billion in corporate tax revenue.