SpaceX has avoided paying federal taxes for years: Report
SpaceX, led by Elon Musk, has reportedly avoided paying federal taxes by using a rule from 2017 that allows them to offset future taxable income due to $5 billion in debt incurred prior to 2021—basically shrinking their tax bill.
This move comes from a Trump-era policy and was highlighted by The New York Times.
SpaceX's revenue comes from government contracts
People are raising eyebrows because most of SpaceX's money actually comes from government contracts—about 84% of its $1.4 billion revenue in 2020 and 76% of $1.7 billion in 2021 came straight from federal deals.
Experts like tax law lecturer at New York University Gregg Polsky say SpaceX has likely paid little to no federal tax for years, even as it racks up big credits and carryovers.
The debate is heating up as more folks question if companies should get major public funding while barely paying into the system themselves.