Textron Paid $0 in Federal Taxes on 2020 Profits, According to New Report
GoLocalProv News Team
Textron Paid $0 in Federal Taxes on 2020 Profits, According to New Report
The Institute on Taxation and Economic Policy (ITEP) this week released that 55 of the largest corporations in America paid no federal corporate income taxes in their most recent fiscal year, “despite enjoying substantial pretax profits in the United States.”
“This continues a decades-long trend of corporate tax avoidance by the biggest U.S. corporations, and it appears to be the product of long-standing tax breaks preserved or expanded by the 2017 Tax Cuts and Jobs Act (TCJA) as well as the CARES Act tax breaks enacted in the spring of 2020,” said ITEP.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTTextron is a "$11.6 billion, multi-industry company employing 35,000 talented makers, thinkers, creators and doers worldwide," according to its website. It sits at #229 on the Fortune 500 list.
“The tax-avoiding companies represent various industries and collectively enjoyed almost $40.5 billion in U.S. pretax income in 2020, according to their annual financial reports. The statutory federal tax rate for corporate profits is 21 percent,” ITEP continued. “The 55 corporations would have paid a collective total of $8.5 billion for the year had they paid that rate on their 2020 income. Instead, they received $3.5 billion in tax rebates.”
Textron in Focus
According to the report, aerospace and defense vendor Textron — which receives billions in federal contracts — reported $278,000,000 in pre-tax income in 2020 and got a $1 million federal rebate, for an effective tax rate of -0.4%.
The report also takes into account the impact of the CARES Act — and a look at how companies fared under the Trump Administration.
ITEP’s report shows that under the Trump Administration, Textron was among 26 profitable companies paying zero — or less — in federal income tax.
The report shows that between 2018 and 2020, Textron reported $1.4 billion in pre-tax income and received $46 million in rebates, for an effective tax rate of -3.1%.
Textron did not respond to request for comment at the time of publication.
