SpaceX Pays Next To Nothing In Federal Taxes Despite Billions In Revenue

 

From an economic standpoint, it makes sense for the federal government to grant eye-watering contracts to stimulate the economy because the eventual returns as tax revenue will dwarf the initial investment. However, that argument is moot if the taxes aren't collected on the other side. SpaceX has paid little to no federal income tax since its founding in 2022, despite receiving over $22 billion from Washington. Elon Musk's private space company is taking advantage of a legal tax benefit that was dramatically expanded during President Donald Trump's first term.

 

SpaceX's tax benefit of choice is the net operating loss carryforward. To oversimplify the tax code, a company can deduct losses from previous years from future profits. It can incentivize startup businesses to rack up losses and avoid profitability. According to the New York Times, SpaceX told its investors that the company may never have to pay any federal income taxes. Musk's house of exploding rockets and telescope-blinding satellites piled up $5.4 billion in losses by the end of 2021.

 

 

Read More:

https://www.jalopnik.com/1941176/spacex-pays-nothing-federal-taxes-despite-billion-revenue.

 

 

Right so it might actually be a loss making company for the first 10 to 20 years - literal long term investment while they build the worlds latest and greatest technology.

That's the way things work - if it didn't and companies were taxed on revenue then the world would grind to a halt.

50 minutes ago, CatCage said:

Musk's house of exploding rockets and telescope-blinding satellites piled up $5.4 billion in losses by the end of 2021.

 

Yup.  No bias in that reporting.

 

 

4 hours ago, CatCage said:

SpaceX Pays Next To Nothing In Federal Taxes Despite Billions In Revenue

 

From an economic standpoint, it makes sense for the federal government to grant eye-watering contracts to stimulate the economy because the eventual returns as tax revenue will dwarf the initial investment. However, that argument is moot if the taxes aren't collected on the other side. SpaceX has paid little to no federal income tax since its founding in 2022, despite receiving over $22 billion from Washington. Elon Musk's private space company is taking advantage of a legal tax benefit that was dramatically expanded during President Donald Trump's first term.

 

SpaceX's tax benefit of choice is the net operating loss carryforward. To oversimplify the tax code, a company can deduct losses from previous years from future profits. It can incentivize startup businesses to rack up losses and avoid profitability. According to the New York Times, SpaceX told its investors that the company may never have to pay any federal income taxes. Musk's house of exploding rockets and telescope-blinding satellites piled up $5.4 billion in losses by the end of 2021.

 

 

Read More:

https://www.jalopnik.com/1941176/spacex-pays-nothing-federal-taxes-despite-billion-revenue.

 

 

Is SpaceX receving money from the feds to send rockets into space?