Not only are many of the biggest corporations reporting big profits, they’re paying small taxes.  The official tax rate for corporations is supposed to be 35%, but the latest study shows the average effective tax paid is about 18.5%.

Some corporations pay no taxes, and a handful actually have negative taxes!

280 companies in the Fortune 500, that were profitable for all three years between 2008 and 2010, were studied.

111 companies paid effective tax rates of less than 17.5% over the three-year period.  98 paid a rate between 17.5% and 30%.

The average rate is 18.5%.  But wait, there’s more.  Some companies paid zero taxes!  30 actually owed less than nothing over the three years!

Two of those corporations are Pepco Holdings and General Electric.  Over the 2008 to 2010 period Pepco made $882 million in profits, but had a tax rate of -57.6% (yes, put a negative sign in front of that)!   But here’s a bigger shocker: GE earned $10.5 billion, with a tax rate of –45.3%!   How do you make big corporate profits, and then effectively have the government owe you money?

Lobbyists hired by Corporate America convince your elected lawmakers to create more corporate tax breaks.

The study was done by Citizens for Tax Justice, and the Institute on Taxation and Economic Policy.