According to the Institute on Taxation and Economic Policy (ITEP), more than 700 profitable companies paid an effective federal income tax of 10.4% last year, less than half the 21% statutory rate, while 114 firms, including Tesla, Walt Disney, United Airlines and DoorDash, paid no current federal income tax. Corporate income tax revenue fell about 15%, or roughly $70 billion, to $381 billion in the fiscal year that ended in late September, and is down more than 25% since 2024, even as corporate profits hit a record $4.7 trillion, up 17%. The Congressional Budget Office projects that President Trump's One Big Beautiful Bill Act (OBBBA) will add $3.4 trillion to the federal deficit over the next decade. Matt Gardner of ITEP says 706 companies saved a total of $198 billion from tax subsidies last year, with Alphabet, Microsoft, Amazon and Meta together saving $46 billion through R&D expensing and 100% bonus depreciation. Senators have demanded that Meta explain by October 31 whether AI data centers classified as experimental 'pilot models' qualify for R&D tax breaks, and Meta says it has invested over $200 billion in R&D over five years.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Tesla and 113 other companies paid no current federal income tax, but they still aren’t the biggest threats to the federal deficit, think tank warns
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