From an economic point of view, it is logical that the federal government grants attractive contracts to stimulate the economy, because possible yields as tax revenue will eclipse the initial investment. However, this argument is theoretical if taxes are not collected on the other side. SpaceX has paid little or no federal income tax since its foundation in 2022, despite the reception of more than $ 22 billion in Washington. Elon Musk’s private space company benefits from a legal tax benefit which was considerably extended during the first term of President Donald Trump.
The taxation of SpaceX of choice is the postponement of net operating loss. To simplify the tax code excessively, a company can deduce losses from previous years of future profits. It can encourage companies to accumulate losses and avoid profitability. According to The New York TimesSpaceX has told its investors that the company may never have to pay a tax on federal income. Musk’s house of explosive rockets and unlimited satellites accumulated $ 5.4 billion in losses by the end of 2021.
SpaceX may never pay federal taxes
You may be wondering why there is no delay to use reports. Well, there were. The tax discounts promulgated by President Trump in 2017 eliminated a 20 -year limit on postponement of the tax loss. This meant that any loss reported after this point could be postponed indefinitely. It is estimated that SpaceX has losses of $ 3 billion after changing the policy to compensate for taxes. This represents more than $ 1.1 billion in tax credits.
SpaceX finally reaches the point where its financial success should benefit the American people. Instead, the manna of the private company will exclusively align the pockets of musk and other investors. Musk himself went to his social media platform in June to boast that SpaceX revenues will be $ 15.5 billion this year. The tax rate of companies set by President Trump in 2017 is a 21%dish, so SpaceX legally avoids $ 3.25 billion. If Musk was so concerned about the federal budget that he was published publicly with Trump on it, he should lobby to return to a tax code from the 1950s.
