Bloomberg Tax
Jan. 13, 2023, 5:06 PM

Trump’s Tax Cut Slashed US Corporate Effective Tax Rate to 9%

Laura Davison
Laura Davison
Bloomberg News

Large corporations saw a sharp drop in their tax burden in the first year of former President Donald Trump’s tax-cut law, according to a federal watchdog.

US companies with at least $10 million in assets paid an average of 8.9% in taxes to the Internal Revenue Service in 2018, a new study from the Government Accountability Office showed. That’s down from the effective rate of about 14.6% the year before.

The figures are well below the headline corporate rate, which Trump’s package cut to 21% from 35% starting in 2018. That’s because companies can use deductions, credits and other ...

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