Post #3414916
2026-04-20 12:20 UTC
Tesla makes large profits in the United States. It then pays huge costs to a partnership domiciled in the Netherlands which isn't real. So Tesla pays zero United States tax.
It also pays little tax in the Netherlands, too. Tax data is confidential there, so we won't know how that works.
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Replies (1)
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@jmcrookston@mastodon.social 2026-04-20 12:50
... However, note that even if Tesla had to pay taxes in the United States on this $18 billion of profits it would have paid $400 million of taxes. (Ref https://economictimes.com/news/international/business/elon-musk-scorned-shady-loopholes-yet-offshore-tax-tricks-likely-saved-tesla-hundreds-of-millions/articleshow/130389082.cms. By the way, I have no idea how it would be such a small number!) If an individual made $18 billion of income they would have to pay roughly half of it - $9 billion - as taxes. So there's something else gravely wrong with this situation.