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Community Voices: Tennessee's tax burden unfairly favors higher earners


Do the federal and state tax laws favor wealthy individuals and corporations? According to the Institute on Taxation and Economic Policy there were 55 Fortune 500 profitable corporations that paid zero federal income taxes in 2020. Their pretax revenue totaled $40.5 billion according to their required annual financial reports.
Ed McKinney
The Republican Tax Cut and Jobs Act of 2017 legislation lowered the corporation tax rate from 35% to 21%. Neither the Republican corporate tax cut nor the 2020 Cares Act closed the web of loopholes that give corporations the opportunity to dodge taxes during a profitable year. The legislation also failed to require a minimum tax to be paid by all profitable corporations. At the suggested minimum tax rate of 15% to be paid by all 55 profitable corporations, the tax revenue for the U.S. government would have been $6.07 billion. ....

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