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Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income

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Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income

#11

Post by 9283409232 »

ssklash wrote: post #9
erulabs wrote: post #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!

In what world is a massively profitable company paying almost nothing in taxes polarizing?

Many people on this very website support large companies not paying taxes.

Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income

#12

Post by cma »

fishtoaster wrote: post #6

Sounds 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."

I'm guessing in a different year the rate will be much lower: afterall, he gave away $1 million a day to a random registered republican voter in a key swing state to get around laws that prevent buying votes and paying people to register to vote.

Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income

#14

Post by xyst »

casenmgreen wrote: post #3

I 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.

Neoliberalism runs deep with this comment.

Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income

#15

Post by erulabs »

ssklash wrote: post #9
erulabs wrote: post #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!

In what world is a massively profitable company paying almost nothing in taxes polarizing?

You have to come into the article believing a ton of things:

1. Tax credits are illegitimate

2. Accelerated depreciation is illegitimate

3. Ownership of productive companies is "hoarding wealth"

4. Journalism is in a battle with the current administration

5. Paying taxes is a good thing

If you _don't_ buy into these premises, for which there is no argument given for or against, you'll be tilted against the author. If you do, you'll be tilted against Tesla. This is polarizing. There is no nuance, there is no learning, there is no insight.

Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income

#16

Post by [deleted] »

davidt84 wrote: post #5
casenmgreen wrote: post #3

I 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.

[deleted]

Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income

#17

Post by rvnx »

casenmgreen wrote: post #3

I 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.

In the past, they used another technique as well, they used corporate money to buy Dogecoin (and some Bitcoin too) to justify investments.

Not in a small amount, we talk about more than 1B USD.

https://techcrunch.com/2022/07/20/elon-musk-discloses-that-t...

From a tax perspective, they are spending to acquire assets, which is very convenient.

Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income

#18

Post by tdb7893 »

casenmgreen wrote: post #3

I 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.

Doesn't net income already take into account these sorts of costs? I thought it was after R&D and construction investments and things

Edit: I legitimately don't know (and am a bit confused as to the exact thing the article calls income). I just know as often an R&D expense I think my salary is taken out before net income

Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income

#19

Post by nickff »

rvnx wrote: post #17
casenmgreen wrote: post #3

I 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.

In the past, they used another technique as well, they used corporate money to buy Dogecoin (and some Bitcoin too) to justify investments. Not in a small amount, we talk about more than 1B USD. https://techcrunch.com/2022/07/20/elon-musk-discloses-that-t... From a tax perspective, they are spending to acquire assets, which is very convenient.

Not all spending is tax-deductible, I believe that only expenses are generally 100% tax deductible on day one.

Re: Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3B in Income

#20

Post by Maxatar »

rvnx wrote: post #17
casenmgreen wrote: post #3

I 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.

In the past, they used another technique as well, they used corporate money to buy Dogecoin (and some Bitcoin too) to justify investments. Not in a small amount, we talk about more than 1B USD. https://techcrunch.com/2022/07/20/elon-musk-discloses-that-t... From a tax perspective, they are spending to acquire assets, which is very convenient.

Buying dogecoin or any crypto, security or asset can not be deducted though. Losses can be deducted, and the depretiation of various assets can be deducted, but the purchase itself isn't considered an expense and can't be deducted.

Otherwise all companies would just buy gold with their profits and never pay taxes.

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