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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

#71

Post by gaze »

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!

people who "don't already buy into the premise" make up such a tiny portion of the audience, that it just isn't worth writing for them. Companies paying their fair share of taxes is wildly popular, and I don't think it's worth getting bogged down writing for this vanishingly small population.

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

#75

Post by Aurornis »

SeanAnderson wrote: post #66
Aurornis wrote: post #62

Earlier quoted context omitted.

> The article doesn't address the other $1.5B $2.3 billion was the income, not the tax bill. Presumably $500M accelerated depreciation and $300M of tax credits covered the effective tax bill on $2.3B income.

How would $800M in deductions cover $2.3B income to the tune of a 0% tax rate? Wouldn't they still be on the hook to pay taxes on $1.5B or is it not that simple? EDIT: Oh, apparently tax credits aren't pre-tax. So if their tax liabilities on $2.3B were $300M then they'd owe $0.

> Oh, apparently tax credits aren't pre-tax.

Yes, tax credits reduce the tax bill, not the taxable income.

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

#76

Post by wongarsu »

Dylan16807 wrote: post #55
ssklash wrote: post #9

Earlier quoted context omitted.

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

If they depreciated some assets faster, that only delays the taxes by a year or two. They'll still pay. $300M in tax credits is basically the same as them paying $300M in tax and then getting a big check from the government for meeting some goal. I don't think it should be treated as any kind of avoidance on behalf of the company. Instead, check if the government paid that money for something useful, and if they didn…

Maybe they assume tax rates will be better for them in 2026. Under that assumption, deprecating things now to shift the tax burden to the future is kind of avoiding tax (or more accurately: the 2024 tax rates).

Given the level of corruption in the US government in general and the role of Musk in the current administration in particular that doesn't seem unlikely to me

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

#77

Post by [deleted] »

jldugger wrote: post #25
erulabs wrote: post #15

Earlier quoted context omitted.

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…

> 4. Journalism is in a battle with the current administration Is this controversial?

[deleted]

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

#80

Post by etchalon »

erulabs wrote: post #15
ssklash wrote: post #9

Earlier quoted context omitted.

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…

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