Report Reveals Major US Companies including Tesla paid Executives More Than Federal Income Taxes

According to a watchdog report, Tesla, the renowned electric vehicle giant, did not pay any federal income taxes from 2018 to 2022, despite generating a whopping $4.4 billion in earnings during that period. Instead, the company allocated a staggering $2.5 billion in total compensation for its top five executives. Incredibly, Tesla even received a $1 million refund from the government over the course of these five years. These details were revealed in a report released by the nonprofit think tank Institute for Policy Studies and Americans for Tax Fairness, another nonprofit organization.
It is important to note that Tesla is not the only company that prioritized paying exorbitant amounts to its top executives over federal income taxes. The report identified a total of 35 major US companies that followed this trend between 2018 and 2022. Collectively, these companies paid their top five executives a staggering $9.5 billion, while simultaneously receiving $1.8 billion in refunds from the government. Interestingly, 18 of the businesses studied reported net profits for more than five years but did not pay any federal income tax.
The study also shed light on other prominent companies, such as T-Mobile, Netflix, Ford Motor, and Match Group, which paid less in federal income tax than what they compensated their top executives. For example, T-Mobile earned a staggering $17.9 billion and paid its executives $675 million, all while receiving a refund of $80 million from the government. Netflix, on the other hand, did pay some taxes, totaling $236 million, but this amount represented only 1.6% of its total earnings of $15.1 billion over the same period.
These revelations raise important questions about the fairness and equity of corporate tax practices. The report’s findings highlight the need for further examination and potential reforms to ensure that companies are contributing their fair share to the public coffers.