Corporations pay little taxes, as the middle class foots the bill

America’s wealthiest citizens and corporations greatly benefit from tax policy that allows them to pay less in taxes than working class Americans. Sometimes, they are even rewarded with more money or other incentives.

Institute on Taxation and Economic Policy (ITEP) Executive Director Amy Hanauer joined America’s Work Force Union Podcast to discuss the companies who get away with paying no taxes, the laws that allow them to pay little to no taxes and more.

Hanauer introduced the ITEP as a group working to expose corporations and wealthy individuals who take advantage of the American tax system to the disadvantage of smaller earners. They also work to push policy that would close tax loopholes.

Companies who pay no taxes

Hanauer said there are plenty of companies who avoid paying their full share of taxes. However, the ITEP has identified at least 55 profitable fortune 500 companies who paid no taxes on their profits in 2020.

While she said they paid no taxes on their profits, they most likely did so legally. The current tax code allows companies to exploit plenty of loopholes to avoid paying taxes, and sometimes even gives them rebates.

Hanauer said the companies do this by moving their money overseas, where they pay a smaller tax rate or no tax rate at all. Additionally, they utilize accelerated depreciation of investments and offer different rates for stock options.

The Trump administration promised that the Tax Cuts and Jobs Act would eliminate many of these loopholes, but it did not. Instead, corporations enjoyed much lower tax rates and the same loopholes.

She added that the law was not necessary, as job growth during the three years before the tax cut was higher than in any year following the tax cut.


America’s Work Force Radio Podcast is available on iTunes, Google Play and wherever you stream your podcasts.

Listen on Apple Podcasts

Listen on Google Podcasts

Listen on Spotify

Listen on iHeart Radio


AMERICA’S WORK FORCE IS THE ONLY DAILY LABOR-RADIO PROGRAM IN THE US AND HAS BEEN ON THE AIR SINCE 1993, SUPPLYING LISTENERS WITH USEFUL, RELEVANT INPUT INTO THEIR DAILY LIVES THROUGH FACT-FINDING FEATURES, IN-DEPTH INTERVIEWS, INFORMATIVE NEWS SEGMENTS AND PRACTICAL CONSUMER REPORTS. AMERICA’S WORK FORCE IS COMMITTED TO PROVIDING AN ACCESSIBLE VENUE IN WHICH AMERICA’S WORKERS AND THEIR FAMILIES CAN HEAR DISCUSSION ON IMPORTANT, RELEVANT TOPICS SUCH AS EMPLOYMENT, HEALTHCARE, LEGISLATIVE ACTION, LABOR-MANAGEMENT RELATIONS, CORPORATE PRACTICES, FINANCES, LOCAL AND NATIONAL POLITICS, CONSUMER REPORTS AND LABOR ISSUES.

AMERICA’S WORK FORCE RADIO IS BROUGHT TO YOU IN PART BY OUR SPONSORS AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES, AFL-CIO, AMERICAN FEDERATION OF MUSICIANS, BMA MEDIA GROUP, COLUMBUS-CENTRAL OHIO BUILDING AND CONSTRUCTION TRADES COUNCIL, COMMUNICATION WORKERS OF AMERICA, HEAT AND FROST INSULATORS AND ALLIED WORKERS, INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES DISTRICT COUNCIL 6, KELLEY & FERRARO, LLP,  LABOR CITIZEN MAGAZINE, LABORERS INTERNATIONAL UNION OF NORTH AMERICA, NORTH COAST AREA LABOR FEDERATION, MARITIME TRADES DEPARTMENT, OHIO FEDERATION OF TEACHERS-AMERICAN FEDERATION OF TEACHERS, UNITED AUTO WORKERS, UNITED LABOR AGENCY, UNITED STEELWORKERS.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.