Editor, OBSERVER:

Many of us are looking forward to a check for a return on overpayment on our 2025 federal income tax. Others are expecting to pay a little more on April 15. I have never minded paying my federal tax. I kind of look at it as payment of club dues for the privilege of living in this great country.

What does bother me is that companies like Tesla had a profit of $5.7 billion and paid no federal income tax for 2025. A big fat zero. At the corporate tax rate of 21% they avoided $1.2 billion in federal tax. And they are not alone. The four big Tech Companies combined had profits of $315.2 billion and paid just $15.4 billion thus avoiding $50.8 nillion in federal taxes.

The Institute on Taxation and Economic Policy (ITEP) examined federal tax returns paid by the 342 largest profitable corporations from 2018 through 2022. Twenty-three corporations paid zero federal tax over the five year period despite being profitable every year. Fifty-five companies (all profitable) paid effective rates of less than 5%. These include Netflix, General Motors, AT&T, Bank of America, Citigroup, Fed Ex, Nike and many others.

Are they doing anything illegal? No, definitely not. They are merely taking advantage of deductions such as accelerating depreciation, offshoring of profits, interest on debt, energy credits, stock buyback and other methods.

It’s true that these companies provide goods and services that we all need and that they employ millions of workers that do pay taxes. But it’s time for these companies to pay their fair share. It would be nice to see the tax code rewritten to eliminate all deductions and simply apply a flat percentage to corporate profits.

Will that ever happen? Probably not. Corporate legal departments, lobbyists and political influence will fight for the status quo.

DAN PUTNAM,

Dunkirk