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Monday, November 02, 2026

More than 100 profitable US corporations, including Tesla, Walt Disney and United Airlines, paid no current federal income tax in 2025, according to a report by the Institute on Taxation and Economic Policy (ITEP). The findings raise questions about corporate tax breaks and government revenue.

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... ITEP examined 706 profitable companies. Together, they reported $1.88 trillion (1.40 trillion) in US profits but paid an average current federal income tax rate of 10.4 per cent, less than half the statutory 21 per cent rate.

A total of 114 companies paid no current federal income tax. Another 258 paid effective rates below 7 per cent, averaging just 1.7 per cent, according to ITEP's October 2026 analysis.

The figures reflect current federal income taxes disclosed in company financial reports, rather than final payments recorded by the Internal Revenue Service. Paying no current tax does not establish that a company broke the law.

Why Low Corporate Tax Payments Matter

ITEP estimated that the 706 companies received $198 billion (147.8 billion) in federal tax subsidies by paying less than the statutory rate. The figures highlight how tax provisions can substantially reduce companies' current liabilities.

Matt Gardner, an ITEP senior fellow and report co-author, told Fortune that reduced rates among large corporations pose a broader concern than zero-tax cases alone. He argued that lower payments by highly profitable companies weaken the corporate tax system.

Corporate profits remain substantial. The US Bureau of Economic Analysis reported profits from current production at an annualised $4.71 trillion (3.52 trillion) in the second quarter of 2026. This measure adjusts for inventory valuation and capital consumption. ...


#1 | Posted by LampLighter at 2026-11-02 01:17 PM | Reply

-paid no current federal income tax in 2025

"Goddamit, for the 9,000th time, Social Security taxes ARE federal income taxes."

-Mathforth

#2 | Posted by eberly at 2026-11-02 01:19 PM | Reply

Tesla pays hundreds of millions in taxes in China.

In the US tesla is a welfare queen.

#3 | Posted by Nixon at 2026-11-02 01:23 PM | Reply

"Goddamit, for the 9,000th time, Social Security taxes ARE federal income taxes."

Except we're talking about Corporations.

Corporations don't pay payroll taxes. YOU THE WORKER are the one ultimately responsible, and YOU THE WORKER are the ones paying them.

#4 | Posted by Danforth at 2026-11-02 01:27 PM | Reply

Employers pay payroll taxes, regardless of their legal structure

but you knew that.

#5 | Posted by eberly at 2026-11-02 01:33 PM | Reply

"Social Security taxes ARE federal income taxes.""

No, they're federal PAYROLL taxes. HUGE difference.

"Employers pay payroll taxes, regardless of their legal structure"

But they're not the ones ultimately responsible. If THEY don't pay, or can't pay, the IRS goes after YOU.

#6 | Posted by Danforth at 2026-11-02 01:36 PM | Reply

-If THEY don't pay, or can't pay, the IRS goes after YOU.

Whatever do you mean?

I've seen plenty of employers get chased for not remitting payroll taxes.........the IRS pursues employees when their employer fails to remit payroll taxes?

"No, they're federal PAYROLL taxes. HUGE difference."

You're gonna make that distinction now? Not the 9,000 times you insisted they were income taxes when posters like Madbomber ignore them when making the same argument about who pays taxes?

#7 | Posted by eberly at 2026-11-02 01:40 PM | Reply

" the IRS pursues employees when their employer fails to remit payroll taxes?"

Yes.

By law, the ultimate responsibility for "the employer's half" of payroll taxes is the employee.

" You're gonna make that distinction now? Not the 9,000 times you insisted they were income taxes"

You've completely missed the point. When no distinction is made between taxes and income taxes, I correct.

The headline made the distinction.

I merely pointed out the corporations are covering that amount, that it's ultimately is part of the worker's compensation ... a bit like the company covering health insurance. But legally ... if, say, your company got shut down Dec 31 for not paying any payroll taxes on your behalf ... the IRS would go after them first, and you for any remaining balance.

The ultimate legal responsibility is with YOU. That's why the IRS literally recommends you ask for proof from your employer every quarter. (As if that happens.)

#8 | Posted by Danforth at 2026-11-02 02:07 PM | Reply

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