ITEP: 114 top companies paid zero federal income tax in 2025, but bigger firms' tax breaks pose greater deficit risk
A progressive think tank's report finds Tesla, Disney, United and DoorDash paid nothing in federal taxes, but says it's the hundreds of firms paying reduced rates that are the real drag on federal revenue.
What to know
- ITEP found 114 profitable companies, including Tesla, Disney, United Airlines and DoorDash, paid no current federal income tax last year.
- More broadly, over 700 profitable corporations paid an average effective rate of 10.4%, less than half the 21% statutory rate, the lowest effective corporate rate in decades.
- ITEP's Matt Gardner argues the bigger fiscal threat comes from hundreds of highly profitable firms paying reduced-but-nonzero rates, which saved $198 billion collectively, far more than the zero-tax companies.
- The findings come as corporate tax revenue has fallen more than 25% since 2024 and the CBO projects Trump's tax-and-spending law will add $3.4 trillion to the deficit over a decade, even as corporate profits hit record highs.
“There’s a real concentration of profits at the top, and when those companies pay anything less than 21%, that’s really what is knocking a hole in our corporate tax laws right now.”
Matt Gardner, ITEP senior fellow · Fortune ↗ · Oct 29
Matt Gardner ITEP senior fellow, report coauthor
Donald Trump U.S. PresidentTesla Company named as paying zero current federal income taxInstitute on Taxation and Economic Policy (ITEP) Progressive think tank, report author
How it unfolded 2 developments, newest first · click a bar or a number to jump articlespostscomments
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Reddit thread debates deficit risk and corporate tax fairness
The Fortune report was reposted to Reddit, drawing comments questioning the long-term sustainability of low corporate tax collection, the practicality of alternative tax structures, and the political hypocrisy of tax-avoiding executives.
“What is the end game of these corporations? What will happen when they debt continues to spiral and the government can no longer afford basic services and infrastructure upkeep?”
— LastOneSergeant, Reddit commenter · source -
That's called VAT and we already have that. If you mean an actual revenue tax, that's been tried and abandoned. It gives a huge competitive advantage to large corporations over small and medium businesses because it favours vertical integration.
2 more of the top 3 · 5 posts in this stretch
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https://www. europesays.com/us/1156035/ Think tank: 114 companies paid no current federal income tax but still aren’t biggest hit to deficit # Business # CorporateProfits # Taxes # UnitedStates # UnitedStates # US
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Elon paid 500 mln, this election cycle. How much is his income? Jeff income is basically 100k a year, did you think he pay with it? So 2 of the most famous don't use income to pay for their expenses. Checkmate atheist.
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Report ties falling tax revenue to Trump-era breaks and deficit growth
The article links the findings to Treasury data showing a 15% ($70 billion) drop in corporate income tax revenue this fiscal year, a more than 25% decline since 2024, alongside record corporate profits of $4.7 trillion and CBO projections that Trump's One Big Beautiful Bill Act will add $3.4 trillion to the deficit over a decade.
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first by Fortune, 14d ago · also USA Today
2 more headlines
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https://www. europesays.com/unitedstates/80 416/ Think tank: 114 companies paid no current federal income tax but still aren’t biggest hit to deficit # CorporateProfits # GovernmentSpending # taxes # Taxes &GovernmentSpending
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background
ITEP reports 114 profitable firms paid zero federal tax — The Institute on Taxation and Economic Policy found more than 700 profitable corporations paid an average 10.4% effective federal tax rate last year, less than half the 21% statutory rate, and that 114 companies—including Tesla, Walt Disney, United Airlines and DoorDash—paid no current federal income tax. Gardner argued that the hundreds of companies paying reduced but nonzero rates, which saved $198 billion collectively, pose a bigger threat to federal revenue than the zero-tax firms.
What people are saying 1 voices from 1 site · best of 6 · verbatim
- Nov 1
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Thinking about all the money Elon put into the elections, because he loves democracy, but not enough to support it financially. That job is for the taxpayers…