According to the Institute on Taxation and Economic Policy, 706 profitable companies paid 10.4% in federal corporate income taxes last year, compared with the statutory 21% rate, while 114 of them, including Tesla, Walt Disney, United Airlines and DoorDash, paid no current federal income tax. However, those companies collectively saved $198 billion through corporate tax subsidies, with the 114 paying no tax accounting for only a small fraction of that amount. Corporate tax revenue fell by about $70 billion to $381 billion in the fiscal year ended September 30 and has declined by more than 25% since 2024. The federal deficit could increase by $3.4 trillion over the next decade under President Donald Trump’s OBBBA, which makes provisions such as immediate expensing of research and development costs and 100% bonus depreciation for qualifying business assets permanent.
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