CFO Slice

A new report from the Institute on Taxation and Economic Policy (ITEP) has found that 114 large, profitable U.S. companies, including Citigroup, Tesla, and Walt Disney, paid no federal income tax in 2025, despite reporting billions of dollars in profits. The analysis of 706 publicly traded companies found that they collectively paid an estimated $196bn in federal income taxes on $1.88tn in profits, representing an effective tax rate of 10.4%, the lowest recorded by ITEP in more than 40 years and well below the statutory 21% rate. The report attributed the reduced tax burden to corporate tax breaks, including accelerated depreciation, which allows businesses to deduct capital investment costs more quickly. ITEP estimated that the companies benefited from $198bn in tax subsidies, with Alphabet, Microsoft, Amazon, and Meta receiving some of the largest benefits. While critics argue that these provisions reduce federal revenue and disproportionately benefit large corporations, supporters maintain that lower corporate taxes encourage investment, job creation, and economic competitiveness. Tax policy experts also cautioned that examining a single year can be misleading, as accelerated depreciation often defers tax payments rather than eliminating them permanently.