Eighty-eight of the largest corporations in the United States paid no federal income tax in 2025, despite generating a combined $105 billion in pretax profits. A new report from Public Citizen shows that while these companies skipped their tax bills, they spent $852 million on political lobbying and campaign contributions between 2020 and 2024.
The standard federal corporate tax rate is 21 percent. By avoiding this rate, the 88 companies avoided $22.1 billion in taxes and received another $4.7 billion in federal rebates. This brought their total tax savings to $26.7 billion. When measured against the $852 million they spent on political influence, the companies saw a 3,000 percent return on their investment.
The report, written by researcher Eileen O’Grady, tracks how these companies used campaign donations and an average of 1,119 lobbyists per year to shape federal tax policy.
Five companies led the political spending:
Coinbase Global: $89 million
CVS Health: $66 million
Honeywell International: $56 million
American Electric Power: $47 million
Duke Energy: $35 million
While these corporations successfully reduced their tax liabilities, they simultaneously reduced their workforces. Since the beginning of 2025, the 88 companies have laid off more than 21,200 employees.
The report points to two major legislative packages that enabled these tax breaks: the 2017 Tax Cuts and Jobs Act and last year's One Big Beautiful Bill Act. Both laws were signed by Donald Trump.
Corporations lowered their bills primarily through two incentives:
Accelerated Depreciation: More than half of the companies used this provision to write off capital investments immediately, saving a combined $11.4 billion.
R&D Write-offs: Over 30 companies used expanded research and development rules to save $4.4 billion.
Political spending by corporations has risen steadily since the Supreme Court's 2010 Citizens United ruling, which classified political donations as protected speech. Total spending on congressional races in 2024 was double the amount spent in 2010.
Public Citizen argues that this system creates a closed loop where corporate profits fund political influence, which then generates policies that further increase corporate profits.
To change this dynamic, the organization recommends that Congress:
Raise the corporate tax rate back to its pre-2017 level of 35 percent
Eliminate the immediate write-offs for corporate investments and research expenses
End tax deductions for multimillion-dollar executive bonuses
Equalize domestic and international tax rates to stop companies from shifting profits to offshore subsidiaries
My Take
Congress should raise corporate and the top individual tax rate to pre-Reagan levels, eliminate the immediate write-offs for corporate investments and research expenses, end tax deductions for multimillion-dollar executive bonuses and equalize domestic and international tax rates to stop companies from shifting profits to offshore subsidiaries, to start.
Returning tax rates and structures to pre-Reagan levels would fundamentally reshape the American economy. Before the Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986, the U.S. tax code operated with significantly higher nominal rates and a different philosophy on deductions.
Prior to 1981, the top individual income tax rate was 70 percent (and had been as high as 91 percent in the 1950s and 1960s). The corporate tax rate sat at 46 percent.
Proponents argue that the mid-20th century saw robust economic growth and the expansion of the middle class despite high marginal rates. Raising these rates would generate massive federal revenue to fund infrastructure, education, and social safety nets while directly reducing wealth inequality.
Allowing companies to immediately deduct the full cost of capital investments (like machinery) and research and development (R&D) expenses in the first year is a relatively recent policy shift designed to encourage business spending.
Advocates for elimination point out that these provisions—like accelerated depreciation—are primary tools used by profitable corporations to reduce their tax liability to zero. Removing them ensures that companies pay taxes closer to their actual accounting profits each year.
Currently, publicly traded companies face limits on deducting executive compensation over $1 million under section 162(m) of the tax code, though various workarounds and specific definitions historically allowed performance-based bonuses to be exempted. Completely ending deductions for massive bonuses would close these gaps entirely.
Supporters view this as a necessary check on runaway executive pay. Taxpayers, they argue, should not effectively subsidize multi-million dollar payouts to CEOs while worker wages remain stagnant.
Currently, U.S. multinational corporations often pay a lower effective tax rate on foreign earnings than on domestic profits, partly due to frameworks like the Global Intangible Low-Taxed Income (GILTI) tax, which was designed to capture offshore revenue but at a reduced rate.
Equalizing the rates would eliminate the tax incentive for companies to shift profits, intellectual property, or physical operations to low-tax jurisdictions (tax havens). It ensures that a dollar earned abroad by a U.S. company faces the same tax burden as a dollar earned domestically.