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Corporate Taxes Fail to Follow Profit Rebound to Pre-2008 Highs

U.S. companies such as AT&T Inc. and Johnson & Johnson are paying less tax than before the recession even as profits have rebounded, buoyed by breaks and expansion in overseas markets, where the tax burden is lower.

Cash tax payments by non-financial companies in the Standard & Poor’s 500 Index fell 13.2 percent to $222 billion in 2010 from 2007, according to data compiled by Bloomberg, while net income rose 12.5 percent to $612 billion. Cash taxes are the amount paid in taxes to all jurisdictions in a given year.