Zero Taxes for Tesla, Full Taxes for Everyone Else

I am writing as a constituent to express my deep concern about how our federal corporate tax laws continue to allow extremely profitable corporations—such as Tesla, Inc.—to report paying zero federal income tax, despite reporting billions of dollars in U.S. profits. This outcome is not only troubling in principle but also shows a serious flaw in our tax system that undermines fairness and public trust. According to a recent analysis by the Institute on Taxation and Economic Policy (ITEP), Tesla reported nearly $5.7 billion in U.S. pre-tax income for 2025 and yet reported zero current federal income tax on that income. Over the past three years, the company reported more than $12 billion in U.S. income but paid only $48 million in current federal income tax—an effective tax rate of just 0.4 percent, far below the statutory 21 percent corporate tax rate set in law. This was achieved through widely used tax provisions such as accelerated depreciation, stock option deductions, R&D tax credits, and net operating loss carryforwards. None of these strategies are illegal under current law, yet the outcome highlights how tax code design allows profitable corporations to avoid paying what many Americans would consider their fair share. While tax incentives—like credits for research and innovation or depreciation rules—may have legitimate policy goals, the way these provisions interact can result in situations where profitable companies contribute disproportionately less than ordinary taxpayers. When major corporations pay 0 % in federal income tax while middle-class families and small businesses shoulder more of their tax burden, it raises serious questions about equity, economic justice, and the sustainability of our revenue base. I urge you to support reforms that would: Close or reform loopholes that allow profitable corporations to pay little or no federal income tax. Ensure that corporations of all sizes pay a minimum effective tax rate on their reported U.S. profits. Increase transparency around corporate tax reporting so that the public and lawmakers can better understand how tax incentives are being used. These changes would help restore fairness to our tax system and ensure that large, profitable corporations contribute appropriately to the public investments—such as infrastructure, education, and research—that support long-term economic growth. Thank you for your attention to this important issue. I would appreciate hearing your position on corporate tax reform and whether you plan to support legislative efforts to address these concerns.