You Pay More Taxes Than Billion-Dollar Corporations—Here’s Why They Still Run the Government

POV: It's tax season

If you’ve ever looked at your paycheck and wondered why you're paying hundreds in taxes while billion-dollar companies pay zero, you're not imagining things. Regular people—workers, freelancers, and small business owners—pay their fair share. But the biggest corporations in the U.S. often don’t. And to make things worse, they’re also the ones influencing the laws that allow this to continue.

They Pay Less Than You—Because They Exploit the Game

Major corporations like Amazon, FedEx, and Netflix have paid $0 in federal income taxes in some recent years, despite reporting billions in profit. How? Loopholes. Lots of them. The most common tricks include:

• Offshoring profits: Moving intellectual property or business units to low-tax countries like Ireland or the Cayman Islands

• Stock-based compensation: Paying executives in stock instead of salary allows for huge deductions

• R&D tax credits: Used (and abused) to deduct large portions of operating costs

• Depreciation write-offs: Claiming loss of value on assets—even when they're still earning

• Loss carryforwards: Applying past “losses” to current profits to dodge paying now

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All legal. All used by the biggest names in business. Meanwhile, you can’t deduct rent, gas, or groceries, and TurboTax still charges you for basic filing.

 Lobbying: Buying Laws Instead of Paying Dues

In 2023, over $4.1 billion was spent on lobbying by U.S. companies. And it’s not just a few bad actors—it’s across industries. Companies like Amazon, Meta, Pfizer, and ExxonMobil allocate millions annually—sometimes 5–10% of their net income—just to influence lawmakers. That’s money that could go to paying workers better, investing in sustainable energy, or just paying their taxes. But instead, it goes to writing policy behind closed doors and keeping government in their pocket.

Lobbying isn't just about influence—it's about control. From tax codes to labor laws to environmental regulations, the most profitable companies are the ones with the most power in the room. And when the people writing the laws are also the ones benefiting from them, it’s no wonder the system is rigged.

The average American pays anywhere from 25-35% of taxes from their total income- including federal, state, social security, medicare, etc. Corporations tax rate is supposed to be 21% on average, but due to loopholes, deductions, and offshore accounting- the effective rate paid is around 8-9% (according to the GAO).

Subsidized Profits, Socialized Losses

You pay taxes. Corporations get taxpayer bailouts. In 2008, banks and automakers like GM, AIG, and Citigroup were rescued with billions—then turned around and paid bonuses or laid off workers. In 2020, airlines like Delta and American took in billions in pandemic relief, only to cut thousands of jobs and boost stock buybacks once the restrictions lifted. These companies privatize profits, socialize losses, and somehow still position themselves as “too big to fail.”

And now we see the effects: crumbling infrastructure, a burnt-out workforce, and a nation constantly asking, “where’s the money going?” while these companies quietly take more from the pot.

 How Gen Z Can Flip the Script—Legally and Loudly

Let’s get one thing straight: taxes are not the problem—what’s broken is who pays them and how they’re used. Taxes should fund schools, roads, clean water, and emergency response. But when Amazon pays nothing, and you’re losing 20–30% of your paycheck before you even touch it, it’s no longer about public good—it’s about public exploitation. So here’s how Gen Z can fight back and play smart at the same time.

One of the best-kept secrets? Even if you work a full-time W-2 job, you can still form an LLC for any side hustle, freelance gig, or creative work you do—even small stuff. That opens the door to tax deductions most W-2 workers can’t access. LLC owners can deduct:

• Part of your rent or home office

• Internet and phone bills

• Laptop, camera, gear, or office equipment

• Business-related travel and meals

• Courses, software, and subscriptions for skill-building

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But even W-2 employees have legal ways to lower their tax burden that are wildly underused, examples including:

• HSA contributions: Pre-tax money for healthcare expenses (if you have a high-deductible plan)

• 401(k) and Roth IRA: Retirement accounts that grow tax-free or tax-deferred

• Commuter benefits: Pre-tax deductions for transit or parking, if your employer offers it

• Education credits: If you’re paying tuition or interest on student loans, there are credits and deductions waiting to be claimed

• Work-from-home deductions (if 1099 or hybrid): For contractors or mixed work types, a portion of utilities or rent can apply

  
  

You don’t need to be rich to use the rules—you just need to know them. The same way the corporations do.

If corporations actually paid their fair share of taxes, without these loopholes involved, imagine how much stronger our country could be?

Still, beating the system isn’t the end goal—fixing it is. The long-term solution is to close the loopholes corporations abuse, regulate lobbying, and demand that companies benefiting from our economy contribute to it. Because right now, the U.S. is falling apart. Airports are crumbling. Wildfires are burning unchecked. Teachers are underpaid. Infrastructure is decades behind. And you know who’s not paying to fix any of it? The same corporations stuffing their pockets with profits from tax avoidance.

A dog doesn’t bite the hand that feeds it—and Congress doesn’t bite the donors writing the checks. But if nothing changes, the system will crack. It already is. Gen Z doesn’t have to just survive it—you can flip it.