Tesla's Tax Avoidance

SOURCE itep.org
Tesla, the most valuable automaker in the world valued at over $1 trillion, did not pay any federal income tax last year, utilizing various tax breaks and credits to minimize tax obligations.

Key Points

  • Tesla reported $10.8 billion of U.S. income over three years but paid only $48 million in federal taxes, resulting in a 0.4% tax rate.
  • The company saved half a billion in taxes last year using accelerated depreciation and benefited from other tax credits and breaks.
  • Congress considered additional tax breaks for Tesla, potentially saving the company billions more in taxes.

Pros

  • Tesla's tax avoidance strategies allowed the company to save significant amounts of money in taxes.
  • The use of tax breaks and credits is legal and commonly employed by many corporations.

Cons

  • Critics argue that Tesla's minimal tax payments are unfair and highlight issues with the current tax system.
  • The company's ability to reduce tax liabilities significantly raises questions about tax policies and corporate responsibility.