Companies paid more to their CEOs than they paid in US taxes – report | a job

Top bosses at some of America's largest companies earned more than their companies paid in federal taxes, according to a new report.

The research found that top executives at 35 different companies — from Tesla to T-Mobile US — earned compensation worth more than their employers' net tax payments between 2018 and 2022. All companies generated billions of dollars in profits during the same period.

The analysis by Americans for Tax Fairness (ATF) and the Institute for Policy Studies (IPS) found that the collective net federal income tax bill for all 35 companies was negative $1.72 billion over five years — meaning they collectively received more money From the government. The government refunds what they paid.

During the same period, the executive compensation of these companies' top executives – including salaries, bonuses, perks, benefits, stock options and stock awards – amounted to $9.49 billion.

Rows of khaki colored dots on the left, a red dot on the right, and a gray line connecting them.

Advocacy groups have called on Congress to increase the corporate tax rate, claiming that raising it from 21% to 28% would generate $1.3 trillion in revenue over a decade. Donald Trump signed a law in 2017 that reduced business taxes.

President Joe Biden declared it was time for big corporations to “finally pay their fair share” during his State of the Union address last week, pledging to “end tax breaks for Big Pharma, Big Oil, private jets, and mega executive pay.”

“Look, I'm a capitalist. If you want to make a million dollars — great! Just pay your fair share of taxes,” Biden said, vowing to fight “like hell” to make the tax system fair.

See also  AI stocks stumble after short seller attack on

Among the 35 companies, the report highlighted Tesla, led by billionaire businessman Elon Musk. The electric car maker has been a loss-making company for years, but in recent years it has achieved significant profits as production increases amid growing demand for electric cars.

Between 2018 and 2022, Tesla's executive pay bill reached $2.5 billion, though that's largely due to Musk's massive 2018 compensation arrangement that was invalidated by a Delaware judge in January. The net federal income tax credit during this period was $1 million — mainly due to carryover of excess losses from prior years, the report claimed.

Tesla It did not respond to a request for comment.

Two line charts, one in red trending upward, the other in khaki staying steady

While T-Mobile executive pay over five years was $675 million, helped by a stock market boost caused by the company's acquisition of Sprint, the report said its net federal income tax bill was negative $80 million.

T-Mobile used a tax deduction for costs incurred when purchasing spectrum licenses, according to the ATF and IPS, and wrote off a $350 million settlement due to cyber attack Which compromised the data of an estimated 76.6 million people, as part of a “variety of tactics” to reduce its bill.

T-Mobile did not respond to a request for comment.

Skip the previous newsletter promotion

Other listed companies, including Ford and Salesforce, did not respond to requests for comment.

Netflix, which is on a list of 35 companies, said it paid more than $2 billion in global income taxes between 2018 and 2022.

A company spokesperson added: “Netflix complies with tax laws and regulations in the United States and around the world.”

Match Group, which is listed, questioned the report's estimates for its company. A company spokesperson said: “The examination of this list is based on allegations that companies that have completed corporate courses have been excluded.” “Match Group was separated from IAC in 2020, so the numbers here are not representative of our business.”

“Both types of corporate misconduct — underpaying taxes and overpaying executives — ultimately victimize working families through lower paychecks and cuts to public services,” said David Kass, executive director of the ATF Foundation.

Co-author Sarah Anderson, director of global economics at IPS, added that the report “shows how executives at big companies are being rewarded for aggressive tax evasion, while working families and small businesses are left to foot the bill.”

Asked why the report focused on US tax payments to multinational corporations operating around the world, Anderson said: “The primary goal of the report is to emphasize the need to reform the tax law in the country where these taxes exist.” [companies] headquartered and making significant profits.

Leave a Reply

Your email address will not be published. Required fields are marked *