In case you want one more reason to shout “tax the wealthy” from the rooftops, it is right here, and it will make you indignant. A examine by the Institute for Coverage Research and Individuals for Tax Equity discovered that 35 main U.S. firms paid their high 5 executives greater than they paid in federal revenue taxes between 2018 and 2022, the Guardian reviews.
The findings are even much less stunning once you be taught the worst offender: Tesla.
Elon Musk’s firm earned $4.4 billion throughout these 5 years and gave its executives $2.5 billion. Regardless of that, Tesla not solely did not pay any federal taxes, however it obtained $1 million in refunds from the federal government. Musk himself is the second richest particular person on the planet, with Forbes reporting he had a web value of $207.9 billion at first of March.
Tesla is one in every of 35 firms that paid much less federal revenue tax than they paid their high 5 executives throughout that interval. In whole, the well-deserving and not-at-all grasping execs of those firms raked in $9.5 billion over these years, whereas cumulatively those self same firms obtained $1.8 billion again from the federal government. Eighteen of those companies reported web income over the 5 years however did not pay a cent of federal revenue tax. (All however one acquired refunds).
The examine lists different notable firms like T-Cell, Netflix, Ford Motor alongside Tesla:
T-Cell made $17.9 billion, paid executives $675 million and obtained $80 million in refunds. The cell supplier has spent an unbelievable sum of money on lobbying Congress for tax breaks, spending $9 million in 2022 alone. Netflix truly did pay some taxes, however the $236 million was simply 1.6 p.c of its $15.1 billion in earnings — and simply over a 3rd of what it paid these high 5 executives. The statutory fee for federal revenue tax is 21 p.c, so yeah, be happy to scream.
Replace, March 14 2024, 6:23AM ET: An earlier model of this report cited Match Group, which was cited in a separate report on company taxation.