Corporate Taxation
Search documents
Warren Buffett Says You Wouldn't Owe A 'Dime' In Federal Taxes If 800 Companies Paid The IRS Like Berkshire — And That Includes Social Security Too
Yahoo Finance· 2026-02-21 17:01
Core Viewpoint - Warren Buffett emphasizes the importance of corporate taxation and expresses a willingness to pay higher taxes, highlighting that a significant contribution from profitable companies could eliminate federal tax burdens for individuals [2][3][4]. Group 1: Corporate Tax Contributions - Berkshire Hathaway sent over $5 billion to the U.S. federal government in the previous year, suggesting that if 800 other companies matched this contribution, no individual in the U.S. would have to pay federal taxes [3]. - Buffett articulated that the federal government owns a percentage of business earnings, which can change annually, reinforcing the idea that taxation is a shared responsibility between profitable companies and the government [4]. Group 2: Future Tax Expectations - The current corporate tax rate is 21%, established by the 2017 Tax Cuts and Jobs Act, but Buffett anticipates that this rate may increase due to the growing national deficit and limited political appetite for spending cuts [4]. - Buffett's response to potential tax increases is one of acceptance, stating, "We'll pay it," indicating a straightforward approach to taxation without seeking loopholes or restructuring [4].
Tesla Paid No Federal Income Tax While Elon Musk Could Earn $3 Billion More Than U.S. Teachers Combined, Says Robert Reich —'See the Problem?'
Yahoo Finance· 2026-02-17 13:59
Core Insights - Tesla reported zero federal income tax for 2025 despite having approximately $5.7 billion in U.S. pretax income, highlighting a significant disparity in tax obligations for profitable companies [1][2] - Elon Musk's compensation structure could potentially allow him to earn up to $100 billion over a decade, which is significantly more than the combined salaries of 1.4 million elementary school teachers in the U.S. [1][5] Taxation and Income - The zero federal income tax figure specifically refers to current federal income tax liability in the U.S., while Tesla has paid taxes globally [3] - The lack of federal tax owed is attributed to various legal provisions in the tax code, including research and development credits, accelerated depreciation, and stock option deductions [2][3] Compensation Structure - Musk's pay package is performance-based, meaning he receives no base salary and his earnings depend entirely on Tesla's long-term growth and stock performance [4] - If all performance milestones are met, Musk's compensation could average close to $100 billion per year over a decade, which underscores the potential for significant income disparity [5]
