President Donald Trump's tax plan may cut the federal business income tax rate from 35 percent to 15 percent, but dozens of companies are already enjoying rates below the new maximum.
The plan would be a windfall for retailers like Best Buy and CVS and for financial services companies like Visa and JPMorgan Chase, which tend to pay close to the 35 percent. On the other hand, companies that have access to substantial tax deductions and are already below 15 percent could suffer if the cut comes at the expense of closing tax loopholes.
The average effective federal tax rate for profitable Fortune 500 companies was a little under 20 percent from 2008 to 2012, according to a 2014 study by the progressive tax reform organization Citizens for Tax Justice. About 35 percent of those companies were already under Trump's proposed 15 percent rate. CTJ is in the process of updating those calculations, and most companies' tax rates have been fairly consistent over the long term.