CHARLESTON, W.Va. – Many huge, profitable corporations pay no state taxes, according to a new report from Citizens for Tax Justice and the Institute for Taxation and Economic Policy.
The report looks at 300 Fortune 500 companies that made a profit every year from 2008 to 2012 and found at least 90 of them paid no taxes to any state for one of the past six years.
Sean O'Leary, policy analyst with the West Virginia Center on Budget & Policy, says those corporations used the same kinds of loopholes and tax cuts that put West Virginia in the red this year.
He says cutting those taxes has been a mistake.
"They don't create jobs in the state,” O'Leary maintains. “They just funnel money out of the state into large, profitable, out-of-state-corporations.
“And for the ones we do give away in West Virginia, we do very little to evaluate to see if they are actually working."
Matt Gardner, director of the Institute for Taxation and Economic Policy, says state corporate tax breaks shift the tax burden to working families, at a time when few can afford it.
"That so many companies are finding ways to zero out their tax when middle-income families don't have that luxury should prompt lawmakers in every state to ask hard questions about what tax breaks these companies are claiming and whether these tax breaks ought to be reformed," he says.
Industry lobbyists argue that state lawmakers should cut corporate taxes to entice companies to locate or expand in the state.
But O'Leary says in fact those decisions are determined by labor, materials and transportation costs, or consumer demand.
He says state and local taxes are just too small to matter for most firms.
"Less than two percent, in most cases, of those total costs,” he points out. “That slice of the pie is not going to drive the decision.
“The decision is going to be driven by infrastructure, access to markets, customer base, and production materials that are available."
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Congressional Republicans are taking a hard look at Medicaid as they pursue spending cuts and a new report shows how the public health program is preventing care access from further eroding in rural North Dakota and elsewhere.
A House GOP proposal floats a nearly $2.5 trillion Medicaid reduction. Findings from Georgetown University's Center for Children and Families showed people in rural areas are more likely than metro populations to receive health coverage through Medicaid.
Katy Kozhimannil, professor of health and policy management at the University of Minnesota School of Public Health, said the program is a key contributor to pregnancy care in these settings.
"Offering obstetric care is a financial challenge for hospitals as revenues may not cover the costs of providing that care," Kozhimannil pointed out. "Medicaid covers nearly half of all births nationally and plays a substantially larger role in paying for births in rural areas."
The report said in 2022, 52% of rural hospitals no longer had maternity wards, compared with 36% of urban hospitals. There is concern the gap would widen with Medicaid cuts and North Dakota almost leads the nation for lack of rural OB/GYN services. Some House Republicans insist the programs need reform to avoid a fiscal collapse. But skeptics said drastic changes are a way to offset a planned extension of federal tax cuts.
The report also pointed out residents in rural areas have worse health outcomes.
Joan Alker, executive director of the Georgetown University Center for Children and Families, said it demonstrates why Medicaid is so important, adding it serves as a lifeline to a range of populations living in these communities.
"It is serving children. It is serving seniors in nursing homes, people with disabilities," Alker outlined.
Alker noted Medicaid helps recipients get ahead of health challenges through preventive care, as
opposed to letting conditions worsen.
"People wind up sicker and then they're in the emergency room and children can't get their asthma inhalers and they miss school," Alker explained.
Disclosure: The Georgetown University Center for Children and Families contributes to our fund for reporting on Children's Issues, and Health Issues. If you would like to help support news in the public interest,
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In their pursuit of slashing government spending, Congressional Republicans are taking a hard look at Medicaid. But a new report shows how this public health program is preventing care access from further eroding in rural Minnesota and elsewhere. The incoming Trump administration promises major budget cuts, and a House GOP proposal floats a nearly $2.5 Medicaid reduction. But findings from Georgetown University's Center for Children and Families show people in rural areas are more likely than metro populations to receive health coverage through Medicaid.
Katy Kozhimannil, associate professor in the University of Minnesota School of Public Health, said its providers rely on it, too.
"Medicaid is an absolutely essential source of revenue for those hospitals to keep operating and to provide different types of services and additional training and support for clinicians," she said.
A key Medicaid component is the Children's Health Insurance Program. At 7%, the Georgetown report says Minnesota is among the states with the largest difference in the share of kids covered by CHIP when comparing smaller towns to urban centers. Some House Republicans insist these programs need reform to avoid a fiscal collapse. But skeptics say drastic changes are a way to offset a planned extension of federal tax cuts.
Joan Alker, executive director and co-founder of the Center for Children and Families at Georgetown University, called these budget proposals "horrifying," while suggesting the public might be caught off guard because the program wasn't really discussed on the campaign trail last fall.
"There was complete silence about it, despite the fact that it is the largest source of public coverage by far in the United States," she said. "It's also a very popular program with the voters of all political stripes."
Report authors stress the timing of the proposed cuts is especially bad as rural areas continue to grapple with hospital closures. 120 facilities have either closed or ceased offering inpatient services over the past decade. Many rural hospitals opt to shutter less lucrative units such as maternity wards. And the experts say Medicaid covers a majority of pregnancy care in smaller communities where these units still operate.
Disclosure: Georgetown University Center for Children & Families contributes to our fund for reporting on Children's Issues, Health Issues. If you would like to help support news in the public interest,
click here.
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One topic expected to make a big splash during Wyoming's general legislative session is property taxes at many levels.
First on the agenda for the Freedom Caucus, Wyoming's House majority faction, is a 25% property tax cut on homes up to $2 million in value, passed by both chambers in 2024. Gov. Mark Gordon vetoed it, calling the fix "temporary and very expensive," as the state would have to pay the backfill.
Hank Hoversland, executive director of the Wyoming Taxpayers Association, said another piece at play is a state constitutional amendment voters passed in November.
"That provides the legislature a vehicle to make a separate class for property taxation purposes, that is, residential real property," Hoversland explained. "Then, it also allows there to be a subclass for owner-occupied, single-family residences."
Though the amendment passed, Hoversland pointed out legislators need to take action this session in order to give the change legs.
At the industry level, Wyoming law includes a property tax exemption for "property used to eliminate, control or prevent air, water or land pollution." Senate File 61, sponsored by Sen. Cale Case, R-Lander, would clarify carbon dioxide shouldn't count as pollution so the state can tax incoming carbon capture projects.
Hoversland stressed energy companies pay a large portion of taxes in the state.
"Just this past tax year, minerals paid about 46% of property taxes, while the all-other category -- including industrial, commercial, residential and ag -- paid 54% total," Hoversland outlined.
Earlier this month, the state also certified the first Wyoming citizen's ballot initiative in 30 years, slated to appear on ballots in 2026. It proposes cutting residential property taxes by 50% for homeowners who have lived in Wyoming for at least one year.
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