Verizon’s $4 Billion Tax Break Nearly Covers Its Yahoo Purchase

It’s almost like Verizon Communications Inc. bought Yahoo! Inc. on Uncle Sam’s dime.

Last year’s federal tax overhaul saved the largest U.S. wireless carrier $3.5 billion to $4 billion — an amount nearly equal to the $4.5 billion it paid for Yahoo in June.

Verizon got a particularly large tax break because almost all of its revenue comes from the U.S. The company is expecting to pay an effective rate of as little as 24 percent this year, down from about 35 percent.

But even with a multibillion-dollar windfall, Verizon made it clear that it doesn’t plan to do anything ...