Although major companies and corporations are successful, not all of them pay their taxes. Individuals and rich people are not the only ones that avoid paying taxes. Corporations are keeping a good amount of their funds out of the U.S.
Bank of America
Bank of America has more than 300 off-shore subsidiaries. In 2012, the company reported $17.2 billion in off-shore profits. By having these subsidiaries in off-shore locations, the income is not taxable in the United States.
FedEx received a giant tax subsidy of $2.1 billion for purchasing new airplanes to deliver goods. The tax code, as it is written, allowed the company to take this major deduction, which actually wiped out their tax debt.
Known for providing electricity and making items such as light bulbs and home appliances, GE is a widely recognized company. Over the last decade, the company has received $29 billion in tax subsidies. For a period of 6 years, taxpayer-funded contracts gave the company $21.8 billion in additional income.
Citigroup is another company with foreign profits. It has been reported that $42.6 billion in foreign profits avoided having taxes paid on it in 2012. They avoid paying the tax on this money by keeping it in a tax-haven location.
No U.S. taxes were paid on $43 billion in off-shore profits for ExxonMobil. Again, keeping funds in tax-haven areas, the company has avoided paying $6.2 billion in taxes.
Major corporations have learned their way around IRS tax loopholes. By keeping funds in off-shore accounts, they can avoid paying taxes since the funds are not technically held within the U.S.
Image credit: Neil Pulling