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    Federal Income Taxes

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    How do large corporations get away with paying very little taxes?

    © BrainMass Inc. brainmass.com June 4, 2020, 2:45 am ad1c9bdddf
    https://brainmass.com/business/accounting/federal-income-taxes-476956

    Solution Preview

    Like any business, large or small, corporations are allowed to deduct all expenses of doing business. In doing so, income tax is paid on net income after all allowable expenses. The tax rates are somewhat comparable to individual rates:

    Taxable income over Not over Tax rate

    $ 0 $ 50,000 15%
    50,000 75,000 25%
    75,000 100,000 34%
    100,000 335,000 39%
    335,000 10,000,000 34%
    ...

    Solution Summary

    The expert determines how large corporations get away with paying very little taxes.

    $2.19

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