Elon Musk, co-founder of Tesla and SpaceX and owner of X Holdings Corp., speaks at the Milken Institute's Global Conference at the Beverly Hilton Hotel, on May 6, 2024, in Beverly Hills, California.on Friday highlighted dozens of profitable U.S.
“Tesla is among the most dramatic examples of this phenomenon — big, profitable corporations that have actually been paying their top executives more than they pay the government in federal income taxes,” the lawmakers wrote. “According to an analysis by the Institute for Policy Studies and Americans for Tax Fairness, in the period between 2018 and 2022, Tesla raked in $4.4 billion in profits and did not pay a single dollar in federal income tax.
The lawmakers demanded that the companies’ CEOs answer several questions, including how much the corporations would have paid in federal taxes had the 2017 Tax Cuts and Jobs Act not been enacted and how much they’ve spent on lobbying to keep the Republican law intact.by the Institute on Taxation and Economic Policy found that 342 companies paid an average effective income tax rate of just 14.1% during the five years after TCJA passed, almost a third less than the 21% statutory rate.