Special Report

These Are The Companies That Avoid Paying Taxes

Jitalia17 / Getty Images

More than 70% of Americans say that the fact that some corporations do not pay their fair share in taxes bothers them either some or a lot, according to a recent Pew Research Center survey. Though there is often disagreement about what the appropriate tax rate should be, most Americans agree corporations should pay more in taxes.

The statutory corporate federal tax rate on profits is supposed to be 21%, but through a string of loopholes, tax breaks, avoidance schemes, tax shelters, and other financial dealings, dozens of companies paid $0 in federal taxes on their profits in 2020.

To determine the companies that avoid paying taxes, 24/7 Wall St. reviewed the list of companies that paid $0 in income taxes for 2020, as compiled by the Institute of Taxation and Economic Policy. Companies were ranked based on their U.S. pre-tax income for the same year.

There are at least 55 companies with publicly available data that turned a profit in 2020 but did not pay a penny in taxes – and almost all of them actually received millions in tax rebates. The 55 companies earned a combined $40.5 billion and took in nearly $3.5 billion in rebates. 

Had these companies paid the 21% rate, that would have pumped $8.5 billion into the government’s coffers. Though the U.S. collects more total tax revenue than any other country, it has one of the lowest tax revenue to GDP ratios among wealthy nations. These are the countries collecting the most taxes.

The companies that avoided paying taxes in 2020 represent a wide variety of industries, including technology, utilities, telecommunications, food and beverages, manufacturing, pharmaceuticals, and more. Some of these companies are among the largest and best known brands in the world, pulling in over a billion dollars per year. These are the most valuable brands in the world.

Click here to see the companies that avoid paying taxes

Courtesy of Treehouse Foods Ltd. via Facebook

55. Treehouse Foods
> U.S. pre-tax income: $8 million
> Federal income tax (including rebates): -$96 million
> Effective tax rate: -1,167.1%
> Industry: Food, beverages, tobacco

[in-text-ad]

Sundry Photography / iStock Editorial via Getty Images

54. Akamai Technologies
> U.S. pre-tax income: $40 million
> Federal income tax (including rebates): -$2 million
> Effective tax rate: -4.4%
> Industry: Technology

53. Albemarle
> U.S. pre-tax income: $42 million
> Federal income tax (including rebates):
> Effective tax rate: -0.3%
> Industry: Chemicals

Public Domain / Wikimedia Commons

52. Owens & Minor
> U.S. pre-tax income: $74 million
> Federal income tax (including rebates): -$4 million
> Effective tax rate: -6.0%
> Industry: Retail and wholesale trade

[in-text-ad-2]

Public Domain / Wikimedia Commons

51. Howmet Aerospace
> U.S. pre-tax income: $86 million
> Federal income tax (including rebates): -$2 million
> Effective tax rate: -2.3%
> Industry: Miscellaneous manufacturing

50. Mohawk Industries
> U.S. pre-tax income: $87 million
> Federal income tax (including rebates): -$34 million
> Effective tax rate: -38.9%
> Industry: Miscellaneous manufacturing

[in-text-ad]

Public Domain / Wikimedia commons

48. Ecolab
> U.S. pre-tax income: $95 million
> Federal income tax (including rebates): -$50 million
> Effective tax rate: -52.6%
> Industry: Chemicals

Public Domain / Wikimedia Commons

48. Sanmina-SCI
> U.S. pre-tax income: $95 million
> Federal income tax (including rebates): -$1 million
> Effective tax rate: -1.0%
> Industry: Technology

47. Tutor Perini
> U.S. pre-tax income: $96 million
> Federal income tax (including rebates): -$36 million
> Effective tax rate: -37.7%
> Industry: Engineering and construction

[in-text-ad-2]

46. Seaboard
> U.S. pre-tax income: $136 million
> Federal income tax (including rebates): -$50 million
> Effective tax rate: -36.8%
> Industry: Food and beverages and tobacco

Public Domain / Wikimedia Commons

45. Xilinx
> U.S. pre-tax income: $140 million
> Federal income tax (including rebates): -$2 million
> Effective tax rate: -1.5%
> Industry: Technology

[in-text-ad]

Courtesy of Tyler Technologies, Inc. via Facebook

44. Tyler Technologies
> U.S. pre-tax income: $176 million
> Federal income tax (including rebates): -$11 million
> Effective tax rate: -6.0%
> Industry: Technology

Public Domain / Wikimedia Commons

43. Ball
> U.S. pre-tax income: $193 million
> Federal income tax (including rebates): -$33 million
> Effective tax rate: -17.1%
> Industry: Miscellaneous manufacturing

Voya Financial

42. Voya Financial
> U.S. pre-tax income: $195 million
> Federal income tax (including rebates): -$9 million
> Effective tax rate: -4.6%
> Industry: Financial

[in-text-ad-2]

Public Domain / Wikimedia Commons

41. Jacobs Engineering Group
> U.S. pre-tax income: $213 million
> Federal income tax (including rebates): -$37 million
> Effective tax rate: -17.4%
> Industry: Engineering and construction

Courtesy of Westlake Chemical Corporation

40. Westlake Chemical
> U.S. pre-tax income: $227 million
> Federal income tax (including rebates): -$208 million
> Effective tax rate: -91.6%
> Industry: Chemicals

[in-text-ad]

39. Cabot Oil & Gas
> U.S. pre-tax income: $240 million
> Federal income tax (including rebates): -$32 million
> Effective tax rate: -13.2%
> Industry: Oil, gas and pipelines

Public Domain / Wikimedia Commons

38. Dexcom
> U.S. pre-tax income: $265 million
> Federal income tax (including rebates): $0
> Effective tax rate: 0.0%
> Industry: Pharmaceuticals and medical products

36. Textron
> U.S. pre-tax income: $278 million
> Federal income tax (including rebates): -$1 million
> Effective tax rate: -0.4%
> Industry: Aerospace and defense

[in-text-ad-2]

Public Domain / Wikimedia Commons

36. Williams
> U.S. pre-tax income: $278 million
> Federal income tax (including rebates): -$29 million
> Effective tax rate: -10.4%
> Industry: Oil, gas and pipelines

34. Interpublic Group
> U.S. pre-tax income: $284 million
> Federal income tax (including rebates): -$53 million
> Effective tax rate: -18.5%
> Industry: Miscellaneous services

[in-text-ad]

Public Domain / Wikimedia Commons

34. Telephone & Data Systems
> U.S. pre-tax income: $284 million
> Federal income tax (including rebates): -$175 million
> Effective tax rate: -61.6%
> Industry: Telecommunications

jetcityimage / iStock Editorial via Getty Images

33. Michaels
> U.S. pre-tax income: $322 million
> Federal income tax (including rebates): -$11 million
> Effective tax rate: -3.5%
> Industry: Retail and wholesale trade

Public Domain / Wikimedia Commons

31. Community Health Systems
> U.S. pre-tax income: $323 million
> Federal income tax (including rebates): -$1 million
> Effective tax rate: -0.3%
> Industry: Health care

[in-text-ad-2]

Courtesy of Sealed Air Corporation via Facebook

31. Sealed Air
> U.S. pre-tax income: $323 million
> Federal income tax (including rebates): -$14 million
> Effective tax rate: -4.4%
> Industry: Miscellaneous manufacturing

pabradyphoto / iStock Editorial via Getty Images

30. Kansas City Southern
> U.S. pre-tax income: $327 million
> Federal income tax (including rebates): -$2 million
> Effective tax rate: -0.6%
> Industry: Transportation

[in-text-ad]

Courtesy of UGI Utilities, Inc. via Facebook

29. UGI
> U.S. pre-tax income: $420 million
> Federal income tax (including rebates): -$85 million
> Effective tax rate: -20.2%
> Industry: Utilities, gas and electric

28. Lincoln National
> U.S. pre-tax income: $423 million
> Federal income tax (including rebates): -$61 million
> Effective tax rate: -14.4%
> Industry: Financial

wellesenterprises / iStock Editorial via Getty Images

27. Archer Daniels Midland
> U.S. pre-tax income: $438 million
> Federal income tax (including rebates): -$164 million
> Effective tax rate: -37.4%
> Industry: Food and beverages and tobacco

[in-text-ad-2]

brightstars / iStock Unreleased via Getty Images

26. Verisign
> U.S. pre-tax income: $447 million
> Federal income tax (including rebates): -$124 million
> Effective tax rate: -27.7%
> Industry: Technology

WendellandCarolyn / iStock Editorial via Getty Images

25. Penske Automotive Group
> U.S. pre-tax income: $505 million
> Federal income tax (including rebates): -$78 million
> Effective tax rate: -15.5%
> Industry: Motor vehicles and parts

[in-text-ad]

Public Domain / Wikimedia Commons

24. Booz Allen Hamilton Holding
> U.S. pre-tax income: $561 million
> Federal income tax (including rebates): -$3 million
> Effective tax rate: -0.5%
> Industry: Technology

krblokhin / iStock Editorial via Getty Images

23. Kinder Morgan
> U.S. pre-tax income: $654 million
> Federal income tax (including rebates): -$20 million
> Effective tax rate: -3.1%
> Industry: Oil, gas and pipelines

Public Domain / Wikimedia Commons

22. Qurate Retail Group
> U.S. pre-tax income: $687 million
> Federal income tax (including rebates): -$8 million
> Effective tax rate: -1.2%
> Industry: Internet services and retailing

[in-text-ad-2]

Public Domain / Wikimedia Commons

21. Evergy
> U.S. pre-tax income: $722 million
> Federal income tax (including rebates): -$27 million
> Effective tax rate: -3.7%
> Industry: Utilities, gas and electric

JillianCain / iStock Editorial via Getty Images

20. Duke Energy
> U.S. pre-tax income: $826 million
> Federal income tax (including rebates): -$281 million
> Effective tax rate: -34.0%
> Industry: Utilities, gas and electric

[in-text-ad]

BalkansCat / iStock Editorial via Getty Images

19. HP
> U.S. pre-tax income: $861 million
> Federal income tax (including rebates): -$24 million
> Effective tax rate: -2.8%
> Industry: Technology

Public Domain / Wikimedia Commons

18. PPL
> U.S. pre-tax income: $878 million
> Federal income tax (including rebates): -$9 million
> Effective tax rate: -1.0%
> Industry: Utilities, gas and electric

17. CMS Energy
> U.S. pre-tax income: $885 million
> Federal income tax (including rebates): -$35 million
> Effective tax rate: -4.0%
> Industry: Utilities, gas and electric

[in-text-ad-2]

16. Hologic
> U.S. pre-tax income: $887 million
> Federal income tax (including rebates): -$62 million
> Effective tax rate: -7.0%
> Industry: Health care

15. Unum Group
> U.S. pre-tax income: $923 million
> Federal income tax (including rebates): -$98 million
> Effective tax rate: -10.7%
> Industry: Financial

[in-text-ad]

hapabapa / iStock Editorial via Getty Images

14. Fiserv
> U.S. pre-tax income: $1.1 billion
> Federal income tax (including rebates): -$25 million
> Effective tax rate: -2.3%
> Industry: Financial data services

RiverNorthPhotography / iStock Unreleased via Getty Images

13. FirstEnergy
> U.S. pre-tax income: $1.1 billion
> Federal income tax (including rebates): -$14 million
> Effective tax rate: -1.3%
> Industry: Utilities, gas and electric

JHVEPhoto / iStock Editorial via Getty Images

12. Advanced Micro Devices
> U.S. pre-tax income: $1.2 billion
> Federal income tax (including rebates): $0
> Effective tax rate: 0.0%
> Industry: Technology

[in-text-ad-2]

wellesenterprises / iStock Editorial via Getty Images

11. FedEx
> U.S. pre-tax income: $1.2 billion
> Federal income tax (including rebates): -$230 million
> Effective tax rate: -18.9%
> Industry: Miscellaneous services

Worldsteel / Getty Images

10. Nucor
> U.S. pre-tax income: $1.2 billion
> Federal income tax (including rebates): -$177 million
> Effective tax rate: -14.5%
> Industry: Metals and metal products

[in-text-ad]

Ingus Kruklitis / iStock via Getty Images

9. Consolidated Edison
> U.S. pre-tax income: $1.2 billion
> Federal income tax (including rebates): -$2 million
> Effective tax rate: -0.2%
> Industry: Utilities, gas and electric

8. Xcel Energy
> U.S. pre-tax income: $1.5 billion
> Federal income tax (including rebates): -$13 million
> Effective tax rate: -0.9%
> Industry: Utilities, gas and electric

Courtesy of DTE Energy Co.

7. DTE Energy
> U.S. pre-tax income: $1.5 billion
> Federal income tax (including rebates): -$247 million
> Effective tax rate: -16.1%
> Industry: Utilities, gas and electric

[in-text-ad-2]

Courtesy of Danaher Corporation

6. Danaher
> U.S. pre-tax income: $1.6 billion
> Federal income tax (including rebates): -$321 million
> Effective tax rate: -20.3%
> Industry: Miscellaneous manufacturing

Justin Sullivan / Getty Images

5. American Electric Power
> U.S. pre-tax income: $2.2 billion
> Federal income tax (including rebates): -$138 million
> Effective tax rate: -6.4%
> Industry: Utilities, gas and electric

[in-text-ad]

J. Michael Jones / iStock Editorial via Getty Images

4. Dish Network
> U.S. pre-tax income: $2.5 billion
> Federal income tax (including rebates): -$231 million
> Effective tax rate: -9.1%
> Industry: Telecommunications

Noam Galai / Getty Images Entertainment via Getty Images

3. Salesforce.com
> U.S. pre-tax income: $2.6 billion
> Federal income tax (including rebates): -$12 million
> Effective tax rate: -0.5%
> Industry: Technology

Natalie Behring / Getty Images News via Getty Images

2. Nike
> U.S. pre-tax income: $2.9 billion
> Federal income tax (including rebates): -$109 million
> Effective tax rate: -3.8%
> Industry: Miscellaneous manufacturing

[in-text-ad-2]

Mr. Satterly / Public Domain / Wikimedia Commons

1. Charter Communications
> U.S. pre-tax income: $3.7 billion
> Federal income tax (including rebates): -$7 million
> Effective tax rate: -0.2%
> Industry: Telecommunications

 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.