Musk’s SpaceX not paying federal tax under Trump’s govt: Report
In a shocking revelation, The New York Times has reported that Elon Musk’s SpaceX may not have paid federal taxes since 2017, during Donald Trump’s presidency. The company has allegedly used a tax benefit to roll over its losses indefinitely, avoiding payment of federal taxes on its newer profits. This news has sparked widespread debate and criticism, with many questioning the tax practices of the company.
According to the report, SpaceX used a tax benefit known as “net operating loss” (NOL) to roll over its losses of $5 billion. This allows the company to offset its future profits against these losses, effectively avoiding federal taxes on those profits. The report also states that SpaceX can roll over nearly $3 billion of its losses to the next financial year, availing of the tax exemption.
The tax benefit in question was introduced by the Trump administration in 2017, as part of the Tax Cuts and Jobs Act (TCJA). The law aimed to reduce corporate taxes and stimulate economic growth, but critics argue that it has also created loopholes that benefit large corporations like SpaceX.
The report highlights the stark contrast between the tax practices of SpaceX and those of other companies. While smaller businesses and individuals are required to pay taxes on their profits, larger corporations like SpaceX can use tax benefits to avoid paying federal taxes. This has led to concerns about tax fairness and the impact on the economy.
The news has also sparked questions about the role of political influence in tax policy. The Trump administration’s changes to the tax law were widely criticized at the time, with many arguing that they disproportionately benefited large corporations and the wealthy. The fact that SpaceX, a company with a net worth of over $100 billion, is able to avoid paying federal taxes has only added fuel to the fire.
SpaceX has not commented on the report, but the news has sparked a heated debate on social media. Many have criticized the company’s tax practices, calling them unfair and unjust. Others have defended the company, arguing that it is simply taking advantage of a tax law that is designed to encourage economic growth.
The report has also raised questions about the accountability of large corporations. While smaller businesses and individuals are required to file tax returns and pay taxes on their profits, larger corporations like SpaceX are not subject to the same level of scrutiny. This lack of transparency has led to concerns about the impact of corporate tax avoidance on the economy and society as a whole.
In conclusion, the report by The New York Times highlights the need for greater transparency and accountability in corporate tax practices. While SpaceX may be taking advantage of a legal tax benefit, the fact that it is able to avoid paying federal taxes while smaller businesses and individuals are not has raised concerns about tax fairness and the impact on the economy. As the debate continues, it is clear that something needs to be done to ensure that all businesses, regardless of size or net worth, are held to the same level of accountability when it comes to paying their fair share of taxes.
