Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income
1–10 of 267 posts
Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income
#2This will be the downfall of the USA. With the government filling up with grifters, the people and companies who still pay up will feel like losers.
Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income
#3I may be wrong, but I understand this is because the company invests all of its income into its business - which means more jobs, work for other companies, and so on.
I think it better money goes into the economy, in a reasonably efficient way, rather than being taken by the State, and used in an unreasonably inefficient way.
Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income
#4> "hoard wealth"
> No mention of reinvestment
> "Tesla was able to avoid paying ... taxes ... by claiming ... tax credits" (presented as bad somehow)
> "We're not backing down"
Where or where is the media coverage that attempts to speak to people who don't already buy in to the premise? This isn't journalism it might as well be blogging. Congratulations, you've made the world more polarized!
Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income
#5I may be wrong, but I understand this is because the company invests all of its income into its business - which means more jobs, work for other companies, and so on. I think it better money goes into the economy, in a reasonably efficient way, rather than being taken by the State, and used in an unreasonably inefficient way.
According to the article, you are wrong.
Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income
#6Sounds like this is the result of "accelerated depreciation." As far as I can tell, that's a strategy that ultimately allows you to pay less tax one year and more tax in a later year. I don't have a strong feeling on the value of that particular tax law, but it seems somewhat less nefarious than the implied "not paying taxes at all."
Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income
#7I may be wrong, but I understand this is because the company invests all of its income into its business - which means more jobs, work for other companies, and so on. I think it better money goes into the economy, in a reasonably efficient way, rather than being taken by the State, and used in an unreasonably inefficient way.
Its due to carry forward of net operating losses from previous years, stock compensation deductions, and other depreciations and deductions.
Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income
#8I wish this article was written with a less biased tone. I'm genuinely interested in understanding it better.
As far as I can tell, the article cites two things: $500M tax savings by using an accelerated depreciation schedule (unclear if they saved $500M more by using accelerated vs a regular depreciation schedule, but I assume no) and they claimed $300M in tax credits.
The article doesn't address the other $1.5B, presumably because it's easier to defend. I didn't read through the 10-K to try and figure this out.
I don't really know enough about what an accelerated depreciation schedule implies, but, taken at face value, they'd have to pay more in taxes in a deferred year which doesn't seem like foul play to me. Tax credits seem to make sense for an EV company?
EDIT: I did some learning, woohoo.
Federal corporate tax rate in America is 21%. The $300M in tax credits is post-tax not pre-tax. The $500M is a pre-tax deduction.
$2.3B - $0.5B = $1.8B
$1.8B * 0.21 = $378M
$378M - $300M = $78M
So, I can't really explain why they didn't owe ~$78M in taxes, but I assume rounding and cursory other stuff. The article probably didn't call out other, minor deductions, but it's also fair of them to not have done so. I was wrong when I said, "The article doesn't address the other $1.5B, presumably because it's easier to defend."
I think the real thing here is the weaponization of EV tax credits as some sort of boogeyman. Personally, I'm all for incentivizing EV companies to create in America.
Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income
#9> "hoard wealth" > No mention of reinvestment > "Tesla was able to avoid paying ... taxes ... by claiming ... tax credits" (presented as bad somehow) > "We're not backing down" Where or where is the media coverage that attempts to speak to people who don't already buy in to the premise? This isn't journalism it might as well be blogging. Congratulations, you've made the world more polarized!
In what world is a massively profitable company paying almost nothing in taxes polarizing?
Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income
#10This will be the downfall of the USA. With the government filling up with grifters, the people and companies who still pay up will feel like losers.
Yep. Paying taxes is the right thing to do for the country. Yet the system gets purposely broken, people lose faith that any system could work, tax dollars run for the shadows, and the cycle accelerates. I don’t know what the fix is. We need to restore faith, but you need revenue to build faith, and revenue depends on established faith.