Four NJ companies paid $0 in 2018 corporate taxes, ITEP report finds

Jessica Perry//December 18, 2019//

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This week, the Institute on Taxation and Economic Policy released a report examining 2018 financial filings for 379 profitable Fortune 500 companies that year – the first full year since President Donald Trump’s signing of the Tax Cuts and Jobs Act in 2017.

The “Corporate Tax Avoidance in the First Year of the Trump Tax Law” report from ITEP found 91 companies paid $0, or less, in taxes on U.S. income in 2018, with four of those companies hailing from the Garden State.

Parsippany-Troy Hills-based Avis Budget Group, Newark’s Prudential Financial and Public Service Enterprise Group, and Madison-based Realogy were named in the report by ITEP.

COMPANY	PROFIT	TAX	RATE
Avis Budget Group	$78	– $37	– 47.5 percent
Prudential Financial	$1,440	– $210.0	– 14.6 percent
Realogy	$67	– $4.0	– 6.6 percent
PSEG	$1,772	– $97.0	– 5.5 percent

Figures in millions of dollars, data source: ITEP

Overall, the report finds that companies evaluated are paying an effective tax rate of 11.3 percent, missing the mark of the 21 percent rate established by tax law.

ITEP is a Washington, D.C.-based nonprofit, non-partisan tax policy organization.