Seven of the 30 largest U.S. corporations paid more money to their chief executive officers last year than they paid in U.S. federal income taxes, according to a new study by Center for Effective Government and Institute for Policy Studies. As Reuters reports, the study said the seven companies, which in 2013 reported more than $74 billion in combined U.S. pre-tax profits, came out ahead on their taxes, gaining $1.9 billion more than they owed…
and at the same time their CEOs were paid – on average – over $17 million each.
As Congress appears set to prioritize the renewal of corporate tax breaks in the lame-duck session, this report reveals stark indicators of the extent to which large corporations are avoiding their fair share of taxes.
These 29 CEOs made $32 million on average last year. Their corporations reported $24 billion in U.S. pre-tax profits and yet, as a group, claimed $238 million in tax refunds, an effective tax rate of negative 1 percent.
The company that received the largest tax refund was Citigroup, which owes its existence to taxpayer bailouts. In 2013, Citi paid its CEO $18 million while pocketing an IRS refund of $260 million.
Three firms have made the list in all three years surveyed. Boeing, Chesapeake Energy, and Ford Motors paid their CEO more than Uncle Sam in 2010, 2011, and 2013.
While some of the firms dispute the findings, the study concludes its findings reflected “deep flaws in our corporate tax system.”
Source: Center for Effective Government and Institute for Policy Studies
