Yes, Tesla reported $0 in current federal income taxes for multiple years, including 2024, 2023, and 2022, despite generating billions in profits. This legal, low-tax status is achieved through tax-loss carryforwards from past losses, manufacturing tax credits for electric vehicles, and other tax code benefits.
Tesla Paid Zero Federal Income Tax in 2024, Despite $2.3 Billion in Income. This brings Tesla's average tax rate over the past three years to 0.4 percent. Truthout is an indispensable resource for activists, movement leaders and workers everywhere.
However, in a post Monday on X, Musk suggested Direct File had been “deleted” as part of his campaign against government overspending. The program's website was still up Wednesday morning, although an X account for an associated IRS agency was down.
Musk paid $455 million in taxes on $1.52 billion of income between 2014 and 2018. According to ProPublica, Musk paid no federal income taxes in 2018. He stated his 2021 tax bill was estimated at $12 billion based on his sale of $14 billion worth of Tesla stock.
Taking Advantage of Capital Gains, Not Salary
One of the biggest reasons Bezos pays little in personal income tax is that he doesn't rely on a traditional salary. Instead, he holds most of his wealth in Amazon stock. Here's why this matters: Capital gains taxes are much lower than income taxes in most cases.
Yes, Jeff Bezos famously kept his Amazon base salary at around $80,000 per year for decades, choosing to take most of his compensation through stock options, which grew immensely as the company succeeded, making him one of the world's wealthiest individuals without a high executive paycheck. He felt he had enough incentive as a major owner and preferred building wealth by increasing the value of his existing equity rather than taking more salary or bonuses.
In some years, billionaires such as Jeff Bezos, Elon Musk and George Soros paid no federal income taxes at all. Billionaires avoid these taxes by taking out special ultra-low-interest loans available only to them and using their assets as collateral.
New York tax expert Robert Willens tells Barron's that Zuckerberg faces a 23.8% federal tax bite—20% federal tax on dividend income and a 3.8% Medicare surcharge—plus the top 13.3% state income-tax rate in California.
Musk Remains the World's Richest Person. Elon Musk maintained his position as the world's wealthiest person, with his net worth estimated at $627 billion by Bloomberg and $750 billion by Barron's. Larry Page's net worth reached $270 billion, moving him to second place due to Alphabet's AI business growth.
The Trump White House announced that it would end the service in April 2025 and confirmed the closure last November. In place of Direct File, the administration is directing people to “IRS Free File,” a collection of free services from the same tax preparation corporations.
“The hardest thing in the world to understand is the income tax.” Albert Einstein hit the nail on the head with this oft-repeated quote. The U.S. Tax Code is long, complex, and ever-changing. This is especially true for people with higher incomes, changing life circumstances, and families to consider.
U.S. Tesla saved half a billion in taxes last year using accelerated depreciation. Tax breaks for executive stock options shaved a quarter billion off the company's tax bill. Unspecified “U.S. tax credits” were good for $300 million of tax savings.
“I'm the largest individual tax payer in history. I pay over $10 billion in tax." — Elon Musk says.
For the year 2024, according to a Forbes estimate, Bezos paid about $2.7 billion in tax on the gain from his sale of $13.6 billion worth of Amazon stock. That stock — the heart of the Bezos fortune since he started Amazon in 1994 — originally cost him no more than $13,600.
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Pop superstar Beyoncé and the IRS agree that she owes $709.20 in tax and penalties instead of the nearly $2.7 million that the agency had asserted in a deficiency notice, according to a stipulated decision approved by the Tax Court . The decision document in Knowles-Carter v.
Al Capone. A federal grand jury indicted notorious gangster Al Capone, leader of the Chicago Outfit crime syndicate, with 22 counts of tax evasion totaling over $200,000 in 1931 (equivalent to more $3.8 million today).
Jeff Bezos's 1-Hour Rule is a morning routine focused on avoiding screens (phones, laptops) for the first hour of the day, allowing for slow, deliberate activities like reading, having coffee, exercising, or spending time with family, which he claims enhances focus, energy, and decision-making, a practice supported by neuroscience for promoting clearer thinking and reducing digital fatigue.
Jeff Bezos was 35 years old when he became a billionaire in 1999, as the skyrocketing value of his Amazon shares propelled him from millionaire status, having already hit millionaire status at 33 after Amazon's IPO in 1997.
Jeff Bezos awards $100 million to Eva Longoria and Bill McRaven for charity purposes | Fortune.