The think tank Citizens for Tax Justice (CTJ) today released a report showing that 280 of the most profitable companies in the US were able to shelter roughly half of their domestic profits from federal income taxes. In fact, 30 of those companies — including North Carolina’s own Duke Energy — actually faced a negative federal income tax rate over the past three years.
The timing of CTJ’s report highlighting the ability of many profitable corporations to game the corporate tax code seems especially well-timed in light of what transpired yesterday at the General Assembly.
In a meeting of the General Assembly’s Revenue Laws Study Committee, a representative of the Council on State Taxation – a DC-based group representing the interests of more than 600 multi-state and multi-national corporations – encouraged lawmakers to make additional changes to tax rules for multi-state corporations with operations in North Carolina.
Such changes, by potentially overturning assessments by the North Carolina Department of Revenue against companies the Department believes have artificially shifted profits earned here in North Carolina to states with no corporate income tax, could cost the state millions of dollars in one-time revenues. Read more