In 2010, Duke Energy reported an annual profit of more than $2 billion. Considering that the statutory federal corporate income tax rate is 35 percent, you’d probably think Duke Energy should have owed the IRS around $750 million. Well, guess what? According to a major new report by the Institute on Taxation & Economic Policy and Citizens for Tax Justice, Duke actually had a tax liability of minus $2 million. Progress Energy, with which Duke wants to merge, made $1.4 billion in profit, yet wound up with a tax liability of minus $46 million.
Duke and Progress are not even close to being the worst corporate tax dodgers. In 2009, Wells Fargo had $28.1 billion in profit. Tax liability? Minus $4 billion. General Electric reported $10.5 billion in profit in 2010 but wound up with $4.7 billion worth of negative taxes.
At a time when many lawmakers want to lower corporate taxes because the 35-percent rate supposedly hurts job creation, this blockbuster report, “Corporate Taxpayers & Corporate Tax Dodgers 2008-10,” shows just how few taxes many of the largest corporations in America actually pay.
Read the press releases about the report here. Then you’ll be able to click through to a pdf of the entire report. Next, remember the report the next time you hear some huge corporation poor-mouthing, in search of more government breaks.
This article appears in Nov 1-7, 2011.
duke energy gave the workers a 2 percent raise.insureance went up around 6 percent so we lost 4 percent of our pay.ceo rogers got a 25 ercent bonus for 2010. this ust doesent seem fair.
Although it may be true that they didn’t have to pay taxes let’s not forget why. Before we pay taxes we have things we can deduct. Improvements, repairs, and the list goes on… I am sure all tax payers take full advantage of the tax laws as well. That being said I would like to have the numbers that reflect the real numbers so we can see exactly why they are not paying taxes. Maybe then we can all come to understand why and where they get their tax breaks. If they warrant being raised then we all can make a educated conclusion instead of listening to the hype by the left or the right!
Gross revenue is what is reported before expenses = profit is what is reported AFTER expenses; expenses ARE the deductions on the tax forms. So how do they go from a 2 billion profit -> no taxes???
“Although it may be true that they didn’t have to pay taxes let’s not forget why. Before we pay taxes we have things we can deduct. “
What part of PROFIT don’t you understand. PROFIT is the bottom line AFTER expenses and taxes.
Duke Energy, GE ..!!