30 corporate giants paid no US taxes in 3 years: Report

Thirty of the 280 most profitable US corporations, including General Electric, Verizon and Boeing, paid no federal income tax in 2008-10, Citizens for Tax Justice (CTJ) said in a report released Thursday.

Together, those 30 companies enjoyed pre-tax profits of $160 billion, yet actually received tax refunds.

Another 78 firms studied did not pay any tax in at least one of the three years, and the effective tax rate for all 280 companies was 18.5 percent, compared with a statutory rate of 35%.

The 280 companies - drawn from among the Fortune 500 - garnered $222.7 billion in tax subsidies during 2008-10. The big winner was banking giant Wells Fargo, to the tune of nearly $18 billion.

And all of this was perfectly legal under the current tax code.

"This is wasted money that could have gone to protect Medicare, create jobs and cut the deficit," CTJ Robert McIntyre, the report's lead author, said.

Referring to lobbying by business groups for lower corporate tax rates and additional exemptions, he said the "study provides proof that too many corporations are already being coddled by our tax system".

The study, prepared by the CTJ in partnership with the Institute on Taxation and Economic Policy, also highlights disparities in tax treatment between companies in the same industry.

While FedEx paid tax at a rate of only 0.9 percent over the 2008-10 period, competitor UPS was taxed at a 24.1% rate, according to the report.