Bank of America, AT&T, JP Morgan Chase & Co., and Verizon Communications have received tax breaks totaling over $10bn each in the past five years, according to a report by the Institute of Taxation and Economic Policy (ITEP). The report reveals that profitable corporations had an average effective tax rate that was about one-third less than the federal corporate income tax rate of 21% between 2018 and 2022. Twenty-three corporations paid zero federal income taxes, while 86 paid less than 10% of their income in federal taxes. The ITEP report makes clear that the companies listed in the report aren’t breaking the law. “Tax avoidance occurs because Congress chooses to allow it,” the report notes, “either by enacting special exceptions and breaks from the regular tax rules, or by leaving in place loopholes that are clearly being exploited.”
