Post AxCXgyyGGh32Cc6Mb2 by Nonilex@masto.ai
(DIR) More posts by Nonilex@masto.ai
(DIR) Post #AxCWnQ5aFywk5i24Dw by Nonilex@masto.ai
2025-08-15T17:40:41Z
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#GiftArticle#SpaceX Gets Billions From the #Government. It Gives Little to Nothing Back in #Taxes.#ElonMusk’s rocket company relies on #federal contracts, but years of #losses have most likely let it avoid paying federal income taxes, according to internal company documents.#law #billionaires #corporations #plutocracy #technocracy https://www.nytimes.com/2025/08/15/technology/spacex-musk-government-contracts-taxes.html?unlocked_article_code=1.eU8.lpty.toC5vnN9k11J&smid=nytcore-ios-share&referringSource=articleShare
(DIR) Post #AxCX626tdLgPDxWPU8 by Nonilex@masto.ai
2025-08-15T17:44:05Z
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The rocket maker’s finances have long been secret because the company is privately held. But documents reviewed by NYT show that #SpaceX can seize on a legal #tax benefit that allows it to use the >$5 billion in #losses it racked up by late 2021 to offset paying future taxable income. #Trump made a change in 2017…that eliminated the tax benefit’s expiration for all #companies. For SpaceX, that means that nearly $3B of its losses can be indefinitely applied against future taxable income.#law
(DIR) Post #AxCXL3baMEPoCk2Z4i by Nonilex@masto.ai
2025-08-15T17:46:47Z
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#Tax experts consulted by NYT said that not having to pay $5B in federal income #taxes was substantial & notable for a company that has relied on contracts with the #US #government to an unusual degree. #SpaceX works closely with the #Pentagon, #NASA & other agencies, giving it a vital role in #NationalSecurity. In 2020, #federal #contracts generated almost 84% of the rocket maker’s revenue, acc/to the documents, a figure not previously reported.#law #Trump #Musk #billionaires #corporations
(DIR) Post #AxCXYsFZN91F2dKaEy by Nonilex@masto.ai
2025-08-15T17:49:18Z
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Larger #tech companies—including some that have taken advantage of the #tax benefit—often pay billions in federal income taxes. #Microsoft, for one, said it expected to pay $14.1B in federal income #taxes in its last fiscal year.#SpaceX can use the tax benefit even if its business thrives. By one measure of #corporate profitability, the company had roughly $5B in earnings from its core operations last year, up from $2.6B in 2023, acc/to what the company has privately told stakeholders.#law
(DIR) Post #AxCXgyyGGh32Cc6Mb2 by Nonilex@masto.ai
2025-08-15T17:50:45Z
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Danielle Brian, the executive director of the Project on #Government #Oversight, a group that investigates #corruption & #waste in the government, said the #tax benefit had historically been aimed at encouraging companies to stay in #business during difficult times.It was “quaint” that #SpaceX was using it, she said, as it “was clearly not intended for a company doing so well.”#law #Trump #Musk #billionaires #corporations #plutocracy #technocracy
(DIR) Post #AxCY1WY58X5y8LeRfM by Nonilex@masto.ai
2025-08-15T17:54:28Z
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…Several news organizations have reported on aspects of #SpaceX’s #finances, which the company discloses to its investors & other stakeholders. But the documents reviewed by NYT — including income statements & balance sheets covering 23 years — offered new insight into SpaceX’s #revenue sources, investors & #taxes.#law #Trump #Musk #billionaires #corporations #plutocracy #technocracy
(DIR) Post #AxCY3QWOW5rK1HllQ0 by Nonilex@masto.ai
2025-08-15T17:54:49Z
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#SpaceX appears to have paid some income #taxes over the years, though likely not to the #federal #government, according to the documents. In one document, the company said it expected to pay $483k in income tax to #foreign governments & $78k in #state income tax in 2021. Separately, it reported paying $6k for income taxes in 2020 & 2021, but did not disclose if the payments were for federal, state or local governments.#law #Trump #Musk #billionaires #corporations #plutocracy #technocracy
(DIR) Post #AxCYFueeJAMKx1aHk8 by Nonilex@masto.ai
2025-08-15T17:57:04Z
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…By the end of 2021, #SpaceX had accumulated almost $5.4B in tax #losses, according to the most recent figure in the documents. Those losses generated the tax benefit, known as a net operating loss carryforward. It enables SpaceX to avoid federal income #taxes on an equivalent amount of future taxable income. The benefit is available to all companies, including start-ups that lose money for years before turning a profit.#law #Trump #Musk #billionaires #corporations #plutocracy #technocracy
(DIR) Post #AxCYMttVX8WecUrlWC by Nonilex@masto.ai
2025-08-15T17:58:20Z
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In one document, #SpaceX told investors that it was “more likely than not that some portion or all of the deferred tax assets will not be realized,” meaning it might NEVER pay #taxes. The company cited, among other things, its past losses. Such language can be common for companies with a history of losses, & this outlook can be revised if their #finances improve, said Robert Willens, an accounting analyst….#law #Trump #Musk #billionaires #corporations #plutocracy #technocracy
(DIR) Post #AxCYdoCtvok3u803FI by Nonilex@masto.ai
2025-08-15T18:01:23Z
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#SpaceX also benefited from a sweeping package of #TaxCuts that #Trump signed in 2017. One change was eliminating a 20-year limit on the use of tax-loss carryforwards, meaning losses generated after 2017 no longer expired. That change allows SpaceX to apply nearly $3B in carryforwards indefinitely.In addition, the company had $227M in carryforwards that could offset #state income taxes, documents show. It had more than $1.1B in other #federal & state #tax credits.#law #Musk #corporations
(DIR) Post #AxCYpor1LquDO0Ub4a by Nonilex@masto.ai
2025-08-15T18:03:34Z
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“Given the size of its net operating loss, the company almost surely didn’t pay any federal tax for years,” said Gregg Polsky, who teaches #TaxLaw at NYU School of Law. “And it’s so large, it’s unlikely it has paid taxes even if it has had positive taxable income in recent years.”#law #Trump #Musk #SpaceX #billionaires #corporations #plutocracy #technocracy
(DIR) Post #AxCYvpil2evToOUlTk by huntingdon@mstdn.social
2025-08-15T18:04:35Z
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@Nonilex Musk seems to rely on federal contracts and Hollywood accounting.
(DIR) Post #AxCZ0MioHsvvJvgH4a by Nonilex@masto.ai
2025-08-15T18:05:26Z
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The tax benefits may have come in handy in recent years as #SpaceX’s finances have improved, at least by one measure. The company has privately said its earnings before interest, taxes, depreciation & amortization nearly doubled to roughly $5B last year from 2023. That figure, known as #EBITDA, is one way of measuring #corporate #profits but is not the same as the bottom line & does not mean that SpaceX is paying #taxes.#law #Trump #Musk #billionaires #corporations #plutocracy #technocracy
(DIR) Post #AxCZRp8WkYnrGYnqSG by ChrisHolladay@mastodon.social
2025-08-15T18:10:15Z
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@Nonilex Its a free standing waste of our tax dollars....Im sorry ,I meant income
(DIR) Post #AxCfNtfsXGj3uHuheK by newstik@social.heise.de
2025-08-15T19:16:53Z
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@Nonilex That seems to be an unfair characterization. SpaceX can *only* take advantage of previous losses when they thrive. Not "even when they thrive".It's normal that a company offsets current profit with previous losses. Individuals do it, too.My friend is in deep debt, but has a mountain of tuition tax credits, both stemming from her education. She invested, now she is earning more, but won't be paying income #tax for years. That enables her to whittle down her #debt.Same principle.
(DIR) Post #AxCg5WlP4xPPakIoJE by newstik@social.heise.de
2025-08-15T19:24:49Z
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@Nonilex #EBITDA does not measure profit. It's a questionable calculation that imagines a world where money is free, taxes are zero, and capital investments don't have to be paid for. Give me 6 billion dollars, and I'll show you how to make 5 billion dollars #EBITDA in year 1. Just don't expect your money back, ever. :-)