Latest news with #incometaxes
New York Times
5 days ago
- Business
- New York Times
SpaceX Gets Billions From the Government. It Gives Little to Nothing Back in Taxes.
SpaceX, Elon Musk's rocket and satellite internet company, has received billions of dollars in federal contracts over its more than two-decade existence. But SpaceX has most likely paid little to no federal income taxes since its founding in 2002 and has privately told investors that it may never have to pay any, according to internal company documents reviewed by The New York Times. The rocket maker's finances have long been secret because the company is privately held. But the documents reviewed by The Times show that SpaceX can seize on a legal tax benefit that allows it to use the more than $5 billion in losses it racked up by late 2021 to offset paying future taxable income. President Trump made a change in 2017, during his first term, that eliminated the tax benefit's expiration date for all companies. For SpaceX, that means that nearly $3 billion of its losses can be indefinitely applied against future taxable income. Tax experts consulted by The Times said that not having to pay $5 billion in federal income taxes was substantial and notable for a company that has relied on contracts with the U.S. government to an unusual degree. SpaceX works closely with the Pentagon, NASA and other agencies, giving it a vital role in national security. In 2020, federal contracts generated almost 84 percent of the rocket maker's revenue, according to the documents, a figure that had not been previously reported. Larger tech companies — including some that have taken advantage of the tax benefit — often pay billions in federal income taxes. Microsoft, for one, said it expected to pay $14.1 billion in federal income taxes in its last fiscal year. SpaceX can use the tax benefit even if its business thrives. By one measure of corporate profitability, the company had roughly $5 billion in earnings from its core operations last year, up from $2.6 billion in 2023, according to what the company has privately told some stakeholders. Want all of The Times? Subscribe.
Yahoo
03-08-2025
- Business
- Yahoo
Who Would Benefit the Most From Trump's Proposed Income Tax Plan?
It seems like an intriguing idea: President Donald Trump has talked about the possibility of tariffs replacing income taxes. It's certainly not a new thought. As noted by SmartAsset, it's similar to early American money policy where tariffs were the primary revenue source for the federal government. Check Out: Learn More: While some economists and policymakers have questioned the viability of such a plan, if it were to happen, here's who financial experts told GOBankingRates might benefit the most. Also see how paychecks would look in each state if Trump dropped federal income tax. Benefits for High-Income Earners According to Anastasia Atamanchuk, CPA, a tax partner at Gursey Schneider, at first glance, replacing federal income taxes with tariffs may look like a straightforward shift from earners to consumers. With that, the winners and losers may seem clear. 'High-income individuals, who pay the lion's share of income taxes, would benefit from eliminating those taxes,' Atamanchuk said. 'In contrast, low-income earners, who spend nearly all of what they make — often on imported goods — would bear a disproportionate share of the new tax burden, much like what happens when a state replaces income taxes with higher sales taxes.' Read Next: Benefits for Businesses 'The winners here include the rich and businesses that do business at home. They would be looking at a swap of wiping out progressive income taxes while taxing border adjustments,' said Dennis Shirshikov, head of growth and engineering at Growth Limit and an adjunct finance professor at the City University of New York. In addition, according to Shirshikov, high net worth households, who save or invest a large fraction of their earnings and do not spend that money on imported consumer goods, could therefore find that their marginal tax falls to zero, whereas their private costs could be negligible. Meanwhile, per Shirshikov, domestic producers in protected industries, steel, aluminum, furniture and even some agri-processors, would also have an easier time, as higher tariffs on imports would provide a barrier against low-cost foreign competition. Economic Impacts When you look beyond that first layer, according to Atamanchuk, the deeper and more uncertain impact lies in how much such a fundamental restructuring would ripple through the economy. 'Tariffs don't just raise prices — they reshape supply chains, consumer demand and potentially global trade relations,' Atamanchuk said. 'We've already seen how sensitive financial markets are to tariff announcements. Even before implementation, such policies can trigger stock sell-offs, disrupt imports and unsettle business planning.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on Who Would Benefit the Most From Trump's Proposed Income Tax Plan?
Yahoo
03-08-2025
- Business
- Yahoo
Who Would Benefit the Most From Trump's Proposed Income Tax Plan?
It seems like an intriguing idea: President Donald Trump has talked about the possibility of tariffs replacing income taxes. It's certainly not a new thought. As noted by SmartAsset, it's similar to early American money policy where tariffs were the primary revenue source for the federal government. Check Out: Learn More: While some economists and policymakers have questioned the viability of such a plan, if it were to happen, here's who financial experts told GOBankingRates might benefit the most. Also see how paychecks would look in each state if Trump dropped federal income tax. Benefits for High-Income Earners According to Anastasia Atamanchuk, CPA, a tax partner at Gursey Schneider, at first glance, replacing federal income taxes with tariffs may look like a straightforward shift from earners to consumers. With that, the winners and losers may seem clear. 'High-income individuals, who pay the lion's share of income taxes, would benefit from eliminating those taxes,' Atamanchuk said. 'In contrast, low-income earners, who spend nearly all of what they make — often on imported goods — would bear a disproportionate share of the new tax burden, much like what happens when a state replaces income taxes with higher sales taxes.' Read Next: Benefits for Businesses 'The winners here include the rich and businesses that do business at home. They would be looking at a swap of wiping out progressive income taxes while taxing border adjustments,' said Dennis Shirshikov, head of growth and engineering at Growth Limit and an adjunct finance professor at the City University of New York. In addition, according to Shirshikov, high net worth households, who save or invest a large fraction of their earnings and do not spend that money on imported consumer goods, could therefore find that their marginal tax falls to zero, whereas their private costs could be negligible. Meanwhile, per Shirshikov, domestic producers in protected industries, steel, aluminum, furniture and even some agri-processors, would also have an easier time, as higher tariffs on imports would provide a barrier against low-cost foreign competition. Economic Impacts When you look beyond that first layer, according to Atamanchuk, the deeper and more uncertain impact lies in how much such a fundamental restructuring would ripple through the economy. 'Tariffs don't just raise prices — they reshape supply chains, consumer demand and potentially global trade relations,' Atamanchuk said. 'We've already seen how sensitive financial markets are to tariff announcements. Even before implementation, such policies can trigger stock sell-offs, disrupt imports and unsettle business planning.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on Who Would Benefit the Most From Trump's Proposed Income Tax Plan? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
Schoemann should look at whole picture when comparing between states on taxes
Reading the article, 'Illinois' income taxes lower than Wisconsin's,' on June 29, Washington County Executive Josh Schoemann points out that Wisconsin income taxes, whose rates increase as one's income increases, are higher than Illinois. What he failed to also mention in this article is the sales taxes in Illinois vs. Wisconsin. Sales taxes tax everyone at the same rate, whether you make lots of money or not, and are therefore a regressive tax. Sales taxes in Chicago are 10.25% vs. Milwaukee at 7.9%. Statewide, Illinois taxes are around 6.25% vs. Wisconsin at around 5%. It's best to see the whole picture when making comparisons. Maty Miller, Oconomowoc Opinion: Brenda Cassellius says MPS must right-size to help deal with $100 million deficit Opinion: On Independence Day, we deserve a president who governs by founding principles Here are some tips to get your views shared with your friends, family, neighbors and across our state: Please include your name, street address and daytime phone. Generally, we limit letters to 200 words. Cite sources of where you found information or the article that prompted your letter. Be civil and constructive, especially when criticizing. Avoid ad hominem attacks, take issue with a position, not a person. We cannot acknowledge receipt of submissions. We don't publish poetry, anonymous or open letters. Each writer is limited to one published letter every two months. All letters are subject to editing. Write: Letters to the editor, Milwaukee Journal Sentinel, 330 E. Kilbourn Avenue, Suite 500, Milwaukee, WI, 53202. Fax: (414)-223-5444. E-mail: jsedit@ or submit using the form that can be found on the on the bottom of this page. This article originally appeared on Milwaukee Journal Sentinel: IIllinois vs. Wisconsin tax claim fails to mention sales tax | Letters
