Written by: Leonard Parker | Houston Business News | 20th April
April 2, 2021Updated: April 2, 2021 12:15 p.m.
Andy Sansom closes the gate to his property where a proposed new natural gas pipeline would pass through his ranch in the Texas Hill Country near Stonewall, Texas Friday, Aug. 2, 2019. A proposed pipeline is a 430-mile, $2 billion natural gas expressway that pipeline giant Kinder Morgan has mapped from the booming West Texas oil patch to Houston. (AP Photo/Eric Gay)Eric Gay, STF / Associated Press
Houston-based Kinder Morgan is one of the largest infrastructure companies in North America — and they're among the at least 55 American corporations that paid absolutely nothing in federal taxes on billions of dollars in profits in 2020.
Citing a report from the Institute on Taxation and Economic Policy, Patricia Cohen reported for the New York Times that Kinder Morgan was bringing in $654 million pretax income and enjoyed a federal tax rebate of $20 million.
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“The fact that a lot of companies aren’t paying taxes says there are a lot of provisions and preferences out there,” said Alan D. Viard of conservative research group American Enterprise Institute, per Cohen. “It doesn’t tell you whether they’re good or bad or indifferent. At most it’s a starting point, certainly not an ending point.”
According to Cohen, a tax bill signed into law by President Donald Trump in 2017 reduced the corporate tax rate from 35 percent to 21 percent, and included the ability to immediately deduct the cost of new equipment and machinery. The $2.2 trillion CARES Act also included a provision allowing businesses to temporarily offset losses in 2020 with profits earned in previous years.
The Biden administration plans to raise the corporate tax rate to 28 percent and establish a kind of minimum tax to limit the number of people who pay no taxes, per Cohen.
ShaCamree joined Chron in April 2020. Previously, she was a digital content producer at WLBT and Fox 40 News in her Mississippi hometown. She enjoys media, music and writing about Beyoncé.