How Do You Pay Very Little in Taxes ?

Over half of the Fortune 500 companies paid no state corporate income tax in at least one of the last three years, and 20 of the companies averaged a tax rate of zero or less from 2008-2010.

Nevertheless, the companies told shareholders they made nearly $117 billion in pre-tax U.S. profits during those no-tax years, and 16 of the companies had multiple no-tax years.

Some companies, such as DuPont, Goodrich, International Paper and Intel, paid no net state income tax over the full three-year period. Among the 20 corporations who paid zero or less in state corporate income taxes over the three-year period were utility provider Pepco Holdings (Pepsi), pharmaceutical giant Baxter International, and fast food provider Yum Brands.

In 2009 alone, 32 companies paid no state income tax. Another 105 of the companies paid less than half the weighted-average statutory state corporate tax rate that year, meaning that fully one half of the companies in the sample paid less than half the average state tax rate.

Most of these companies invest in the very best tax advisors. A good corporate tax advisor can cut business taxes significantly. It is the same on the personal level. A good tax advisor is not a cost but an investment that makes you money every year.

Wishing you many happy returns,