Cumulative burden of taxes

[Gr8bawana]

Elon Musk’s company avoided almost all federal income tax on over $12 billion of U.S. income over the past three years​

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Tesla, the company owned by a billionaire who briefly held a job seeking to cut federal government waste, received over $1.1 billion in federal income tax breaks from American taxpayers last year alone.

Tesla’s annual financial report, released this morning, shows the company enjoyed almost $5.7 billion of U.S. income in 2025—almost doubling the $2.98 billion the company enjoyed in 2024—on which it reports precisely zero current federal income tax.

Over the past three years, the Elon Musk-led company reported $12.58 billion of U.S. income on which its current federal tax was just $48 million. This means that over the past three years, Tesla paid just 0.4 percent of its U.S. profits in federal income taxes, which is another way of saying the company reported an effective federal income tax rate of 0.4 percent. This is a tiny fraction of the 21 percent tax rate profitable corporations are supposed to pay under the law.

 

[jpc01101]

Elon Musk’s company avoided almost all federal income tax on over $12 billion of U.S. income over the past three years​

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Tesla, the company owned by a billionaire who briefly held a job seeking to cut federal government waste, received over $1.1 billion in federal income tax breaks from American taxpayers last year alone.

Tesla’s annual financial report, released this morning, shows the company enjoyed almost $5.7 billion of U.S. income in 2025—almost doubling the $2.98 billion the company enjoyed in 2024—on which it reports precisely zero current federal income tax.

Over the past three years, the Elon Musk-led company reported $12.58 billion of U.S. income on which its current federal tax was just $48 million. This means that over the past three years, Tesla paid just 0.4 percent of its U.S. profits in federal income taxes, which is another way of saying the company reported an effective federal income tax rate of 0.4 percent. This is a tiny fraction of the 21 percent tax rate profitable corporations are supposed to pay under the law.

I think the saying goes something like "Don't hate the player, hate the game" and it's true. The game is terribly rigged.

 

[Big Fin]

View attachment 406051
Seems relevant. Note that expenditures exceed revenues by almost 40%.

Yup. So, folks need to be willing to pay 40% more for current services requested or accept less services. That would be a better way for people to understand the gap between demands for services and willingness to pay with their own money.

But, as many mentioned, matching those to ends of the equation is not the way to get votes. Thus you younger folks get the shaft.

 

[SAJ-99]

View attachment 406051
Seems relevant. Note that expenditures exceed revenues by almost 40%.

Needs context, as all numbers do. I could ask where you want to cut but that usually ends in a dead end road. We are sawing at bone.

Here are a couple of estimates for 2024. I'm curious on opinions.
Corporate income, we will sub with EBIT $4.5T, Taxes $530B so a tax rate of about 11.8%.
Individuals (this is a guesstimate, Avg weekly earn x 52 x 162m people) = $9.3T with $2.4T in individual income taxes. So about 25%.

Seem fair? Like I said, I want to be reincarnated as a corporation.

 

[mdhunter]

I was never a fan of VAT tax proposals but when everyone only feels the acceptable way to increase taxes is to increase them on the other guy, what is an option that will close the 40% for current services and stop the deficit from growing?

Also, the lack of political will to pass a balanced budget amendment is vomit worthy… Just my .02

 

[Forkyfinder]

Needs context, as all numbers do. I could ask where you want to cut but that usually ends in a dead end road. We are sawing at bone.

Here are a couple of estimates for 2024. I'm curious on opinions.
Corporate income, we will sub with EBIT $4.5T, Taxes $530B so a tax rate of about 11.8%.
Individuals (this is a guesstimate, Avg weekly earn x 52 x 162m people) = $9.3T with $2.4T in individual income taxes. So about 25%.

Seem fair? Like I said, I want to be reincarnated as a corporation.

Okay saj.

Quadruple corporate taxes - that seems like a potentially bad idea, but for the sake of argument - you realize thats not even enough to make the US break even?

Theres never enough of everyone elses money to keep up with unsustainable spending.

 

[jryoung]

Elon Musk’s company avoided almost all federal income tax on over $12 billion of U.S. income over the past three years​

---

Tesla, the company owned by a billionaire who briefly held a job seeking to cut federal government waste, received over $1.1 billion in federal income tax breaks from American taxpayers last year alone.

Tesla’s annual financial report, released this morning, shows the company enjoyed almost $5.7 billion of U.S. income in 2025—almost doubling the $2.98 billion the company enjoyed in 2024—on which it reports precisely zero current federal income tax.

Over the past three years, the Elon Musk-led company reported $12.58 billion of U.S. income on which its current federal tax was just $48 million. This means that over the past three years, Tesla paid just 0.4 percent of its U.S. profits in federal income taxes, which is another way of saying the company reported an effective federal income tax rate of 0.4 percent. This is a tiny fraction of the 21 percent tax rate profitable corporations are supposed to pay under the law.

I'm guessing that came from ITEP because it already doesn't reconcile with the Income Tax Footnote....then again most folks aren't going to be able to understand a rate rec.

 

[SAJ-99]

Quadruple corporate taxes - that seems like a potentially bad idea, but for the sake of argument - you realize thats not even enough to make the US break even?

But tt certainly would move in the right direction. Again, the chart is a great summary but a little incomplete. The difference in SS expenditures and Payroll revenues are paid out of the SS trust funds. It is a self-contained structure and should be taken out of total on both sides. Medicare has similar structure but is far more problematic given the number of retirees and size expenditures. Their unique structure make them need to be separated out of the chart. Yeah, we have a problem. It's as much of a revenue problem as an expenditure problem, but I'm all for attacking both sides. The upcoming Military budget jumps from $900B to$1500B with nothing to offset on revenue side other than "hopes and dreams" for GDP growth. But no one cares as long as they get theirs.

Someone made a post on another thread that the American people wanted a politician that was honest with them. It made me laugh.

 

[SAJ-99]

Okay saj.

Quadruple corporate taxes - that seems like a potentially bad idea, but for the sake of argument - you realize thats not even enough to make the US break even?

Theres never enough of everyone elses money to keep up with unsustainable spending.

And I want to assure you have similar debates with people who want to "tax the millionaires to pay for X or Y". That is equally silly as cutting "reckless wasteful spending" that doesn't seem to exist. Everyone wants to pick their problem and pick the solution. To Noharleyyet's point, it's really not complicated, but it is painful.

 

[Handlebar]

Increasing the taxes on corporations which will be passed on to consumers is a good thing but increasing tariffs which will be passed on to the consumer is a bad thing.