Merck & Co., the second largest pharmaceutical firm in the United States, made over $2 BILLION in profit in the second quarter, but paid no U. S. taxes.
Merck wasn’t the only one. USA Today reported on 20 big American companies that made money in the second quarter, but didn’t pay any taxes.
In fact, this group—Merck, Seagate Technology, Thermo Fisher Scientific, General Motors and 16 others—made almost $4.5 BILLION in profits, overall, but they used tax credits, write-offs and other business tax deductions to completely eliminate their nominal 35% tax liability.
The news media doesn’t mention often enough that nearly all U. S. companies don’t pay anything near that nominal 35% “corporate income tax” rate that gets routinely blasted as “the highest corporate tax in the world.”
It’s legal, but it shouldn’t be.
Here’s another point that your favorite big business isn’t likely to mention in its next annual report: In the 1950s, U.S. corporations paid in about a third of all U.S. tax revenues……now that figure is down around 10%.
Has your personal tax bill been rising or falling lately?