***This post was authored by Jelicia Diggs.
As Congress debates reforming the federal tax code, it is critically important to raise new revenues that can support our nation’s long-term economic recovery. One excellent source of new revenues involves the billions of dollars in corporate tax loopholes, deductions, credits, and outright giveaways that allow too many multinational corporations to avoid paying their fair share of taxes. This year, N.C. Policy Watch and the N.C. Budget and Tax Center are focusing on federal corporate tax reform as a means of highlighting a frequently under-reported fact: Namely, not all American corporations are paying the statutory tax rate and therefore are failing to support fiscal responsibility and the investments that are needed for a strong economy.
To underscore this message, we are shining a light on a number of corporate tax avoiders with strong connections to North Carolina by summarizing:
- the size and scope of their businesses,
- the taxes they have avoided paying in recent years, and
- the methods they use to accomplish this.
Click here to read previous profiles of Duke Energy, Merck & Co. and International Paper.
Background and North Carolina connections:
Founded over two centuries ago as a gunpowder mill, DuPont has grown into one of the top five largest chemical companies in the world. In fact, Fortune Magazine ranks Dupont as one of the nation’s “Most Admired Companies” and second in the world among chemical companies. DuPont is headquartered in Wilmington, Delaware.
DuPont is best described as a global science company that offers products and services in fifteen industries such as automotive, chemical, medical, and energy. With diverse industries in more than 90 countries, this company puts out to introduce hundreds of products and patents every year. In 1968 DuPont opened its fourth United States location in Fayetteville, North Carolina. The Fayetteville plant manufactures a variety of fibers, new films and specialty chemicals needed by businesses, the military, and consumers. The Fayetteville location employs just over 900 employees.
Over the past several years, DuPont has experienced a successful recovery from the Great Recession, and is continuing to generate significant profits. After cutting more than 17,000 jobs in 2010 due to the recession, DuPont has since managed to regain its dominant footing in the chemical industry. The company currently has more than 150 research and development centers and more than 70,000 employees worldwide and $49.7 billion in assets. Forbes.com reported last year that DuPont’s CEO Ellen Kullman has received an average compensation of around $9.7 million per year, for each of the last six years.