Senator Elizabeth Warren and fellow Senate Democrats sent letters to the CEOs of Meta, Alphabet, Amazon, and Microsoft demanding detailed accounting of tax deductions and subsidies claimed on their massive AI and data center investments. The four companies’ collective federal tax payments have dropped 25% year-over-year despite rising revenues. Microsoft’s federal income tax expense fell by more than $11 billion, Amazon’s by nearly $8 billion, and Alphabet’s by over $7 billion. The 2025 Republican-led OBBBA legislation introduced generous deductions on capital investments, including permanent 100% bonus depreciation and retroactive research and development expensing. Meta reported $72 billion in capital expenditures last year, with the bulk directed toward data centers and AI-related projects.
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