In case you needed another reason to advocate for taxing the rich, a recent study reveals a startling trend: 35 major US companies paid their top five executives more than they paid in federal income taxes between 2018 and 2022, according to a report by The Institute for Policy Studies and Americans for Tax Fairness, as cited by The Guardian.
The most egregious example among these companies is Tesla, Elon Musk’s brainchild, which reported earnings of $4.4 billion over the five-year period and compensated its executives with $2.5 billion. Despite this, Tesla not only evaded paying federal taxes but also received a $1 million refund from the government. Elon Musk, the CEO of Tesla, stands as the second richest person globally, boasting a net worth of $207.9 billion as of March.
Tesla is just one of many companies that prioritized executive compensation over tax obligations. Collectively, the executives of these companies pocketed a staggering $9.5 billion during the five-year span, while the companies themselves received $1.8 billion in tax refunds from the government. Shockingly, 18 of these businesses reported net profits during this period but managed to avoid paying any federal income tax, with all but one receiving refunds.
Among the notable companies mentioned in the study are T-Mobile, Netflix, Ford Motor, and Match Group. T-Mobile, for instance, amassed $17.9 billion in earnings, paid its executives $675 million, and secured $80 million in tax refunds. The company has been fervently lobbying Congress for tax breaks, spending a substantial $9 million in 2022 alone. Netflix, on the other hand, did contribute some taxes, albeit a meager $236 million, which accounted for only 1.6% of its $15.1 billion earnings—barely surpassing a third of what it paid its top five executives. Considering the federal income tax statutory rate stands at 21%, these revelations rightfully provoke outrage.