Although April 15th is known as “Tax Day” to the millions of Americans who pay taxes, USA TODAY is reporting over two-dozen corporations that didn’t pay any taxes.
Though you shouldn’t be concerned if you’re thinking these big, profitable companies are doing some seedy deals to get out of paying income tax. Rest assured, each one of the reported 27 companies did something that’s totally legal.
How to Legally Avoid Paying Income Tax
Some companies (like American Airlines, General Motors, Hewlett Packard, and United Continental) offset their financial losses from prior years. Doing so allowed these corporate hogs to escape the taxman.
To put things into perspective, take the example of United Continental. In 2015, the company reported a $3.2 billion income tax credit. In the same year, they reported earnings reaching $4.2 billion. But because of accounting rules, the airline was able to offset taxes because of valuation allowances for financial losses in past years. Throughout 2015, United claimed a total loss of $4.7 billion. This ultimately eliminated the normal corporate tax rate tab of $1.5 billion it had initially raked up.
And although airline companies aren’t the only corporations utilizing these tax loopholes, they seem to be benefiting the most out of sketchy tax laws. Meanwhile, airline employees strike for basic living wages.
The List: Who Isn’t Paying Their Fair Share?
Of the 27 companies that didn’t pay a cent in income tax during 2015, many are common, household names. Check out the list below for the companies whose executives likely made bonuses bigger than what you’ll make in your lifetime:
- American Airlines
- AmerisourceBergen
- Apartment Investment and Management
- Citrix Systems
- Crown Castle International
- E*TRADE Financial
- First Solar
- General Growth Properties
- General Motors
- Hewlett Packard Enterprise
- Legg Mason
- Level 3 Communications
- Loews
- The Macerich Company
- Mallinckrodt
- Microchip Technology
- News
- PG&E
- Qorvo
- Thermo Fisher Scientific
- United Continental
- Ventas
- Vornado Realty
- Weyerhaeuser
- Willis Towers Watson
- Xerox
- XL Group