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446811 |
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Date: March 13, 2025 at 10:12:32
From: akira, [DNS_Address]
Subject: Tesla avoided almost all federal income tax on nearly $11 billion ... |
URL: https://itep.org/tesla-reported-zero-federal-income-tax-in-2024/ |
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January 30, 2025
Elon Musk’s company avoided almost all federal income tax on nearly $11 billion
of U.S. income over three years
Tesla, the most valuable automaker in the world valued at over $1 trillion, did
not pay any federal income tax last year.
Tesla’s annual financial report, released this morning, shows the company
enjoyed $2.3 billion of U.S. income in 2024 on which it reports precisely zero
current federal income tax. Over the past three years, the Elon Musk-led
company reports $10.8 billion of U.S. income on which its current federal tax
was just $48 million. That comes to a three-year federal tax rate of just 0.4
percent – more than 50 times less than the statutory corporate tax rate of 21
percent.
Tesla Current Federal Income Tax Rates, 2022-2024
Year U.S.
Income Current Federal
Income Tax Current Federal
Tax Rate
2022 $5.5 billion $0 0%
2023 $3.1 billion $48 million 1.5%
2024 $2.3 billion $0 0%
3-year total $10.8 billion $48 million 0.4%
Source: Institute on Taxation and Economic Policy, January 2025
Tesla saved half a billion in taxes last year using accelerated depreciation. Tax
breaks for executive stock options shaved a quarter billion off the company’s
tax bill. Unspecified “U.S. tax credits” were good for $300 million of tax savings.
Musk’s company also used net operating losses to offset current year income,
although it’s hard to know how much of that affects U.S. income rather than the
company’s far-larger foreign income.
Congress might give Tesla even more tax breaks. A bill passed by the House of
Representatives in the previous Congress would have retroactively reinstated a
provision allowing full expensing of research and development expenses which
could save the company up to $2.4 billion in taxes.
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Responses:
[446818] |
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446818 |
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Date: March 14, 2025 at 04:24:47
From: mitra, [DNS_Address]
Subject: Re: Tesla avoided almost all federal income tax on nearly $11 billion... |
URL: https://apnews.com/article/irs-chief-counsel-tax-data-doge-elon-musk-518e92b878ffea1f6d316bb834c82383 |
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IRS swaps its chief counsel for a lawyer friendly with
DOGE, AP sources say
WASHINGTON (AP) — The Internal Revenue Service’s acting
chief counsel, William Paul, has been removed from his
role at the agency and replaced by Andrew De Mello, an
attorney in the chief counsel’s office who is deemed
supportive of Elon Musk’s Department of Government
Efficiency, according to two people familiar with the
plans who were not authorized to speak publicly.
The people said Paul was demoted from his position
because he clashed with the DOGE’s alleged push to
share tax information with multiple agencies. The news
also comes as the IRS plans to institute massive cuts
to its workforce.
The IRS is drafting plans to cut its workforce by as
much as half through a mix of layoffs, attrition and
incentivized buyouts as part of the President Donald
Trump’s efforts to shrink the size of the federal
workforce. The administration is closing agencies,
laying off nearly all probationary employees who have
not yet gained civil service protection and offering
buyouts to almost all federal employees through a
“deferred resignation program” to quickly reduce the
government workforce.
Already, roughly 7,000 probationary IRS employees with
roughly one year or less of service were laid off from
the organization in February.
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