Thanks to the Tax Cuts and Jobs Act (TCJA) of 2017, the US Corporate Tax has been reduced from 40% – the second highest in the world as of 2017 – to 21% in 2018. The new rate is below the 24.03% global average. This dramatic decrease, however, hasn’t stopped a number of US companies from dodging their dues.
According to WalletHub, a personal finance website, companies in the S&P stock index paid about 7% lower rates in the US taxes than they did internationally.
Tech giant including Facebook, Apple, and Cisco, are still paying more than 15% lower rates internationally, continuing the trend from 2013.
AbbVie, Berkshire Hathaway, FedEx, NVIDIA, and PepsiCo are five S&P 100 companies paying a negative overall tax rate.
Among the companies that owe taxes are Adobe, Exelon, General Motors, Pfizer and Netflix which are paying some of the lowest rates.
Let’s take a look at the 10 S&P 100 companies which paid the highest US corporate taxes last year.
Companies Paying the Highest Taxes
(Overall Tax Rate)
- Qualcomm Inc. (1048.1%)
- CVS Health Corp. (142.4%)
- Cisco Systems Inc. (99.2%)
- Oracle Corp. (70.3%)
- American International Group Inc. (59.9%)
- Nike Inc. (55.3%)
- Microsoft Corp. (54.6%)
- Medtronic Inc. (45.5%)
- Wal-Mart Stores Inc. (37.4%)
- ConocoPhillips (36.8%)
A list without the mention of S&P 100 companies that paid the lowest taxes last year would be an incomplete one.
Companies Paying the Lowest Taxes
(Overall Tax Rate)
- PepsiCo Inc. (-36.7%)
- AbbVie Inc. (-9.4%)
- Berkshire Hathaway Inc. (-8.0%)
- NVIDIA Corporation (-6.3%)
- FedEx Corp. (-5.0%)
- Netflix Inc. (1.2%)
- Exelon Corp. (5.4%)
- General Motors Co. (5.5%)
- Pfizer Inc. (5.9%)
- Adobe Inc. (7.3%)
