Think tank: 114 companies paid no current federal income tax but still aren’t biggest hit to deficit
A report by the Institute on Taxation and Economic Policy found that 114 profitable US companies, including Tesla, Walt Disney, and United Airlines, paid no current federal income tax in 2025. The effective corporate income tax rate has dropped to 10.4%, the lowest in decades. This has raised concerns about the impact on the US federal deficit.
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- ✓ 114 profitable US companies paid no current federal income tax in 2025
- ✓ The effective corporate income tax rate was 10.4% in 2025, the lowest in decades
- ✓ More than 700 profitable companies paid less than half of the 21% statutory corporate tax rate
- ✓ Corporate tax revenue fell about 15%, roughly $70 billion, to $381 billion in the fiscal year ended Sept. 30
What changed
The Institute on Taxation and Economic Policy released a report detailing the low effective corporate income tax rate and the number of companies paying no federal income tax.
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114 US companies paid no federal income tax in 2025
A report by the Institute on Taxation and Economic Policy found that 114 profitable US companies, including Tesla, Walt Disney, and United Airlines, paid no current federal income tax in 2025. The effective corporate income tax rate has dropped to 10.4%, the lowest in decades. This has raised concerns about the impact on the US federal deficit.
Why it matters
The significant decrease in corporate tax revenue has drawn congressional scrutiny. Corporate tax revenue fell about 15%, roughly $70 billion, to $381 billion in the fiscal year ended Sept. 30, even as corporate profits reached a record $4.7 trillion. This development has implications for the US government's revenue sources and budget planning.
What is confirmed
- 114 profitable US companies paid no current federal income tax in 2025
- The effective corporate income tax rate was 10.4% in 2025, the lowest in decades
- More than 700 profitable companies paid less than half of the 21% statutory corporate tax rate
- Corporate tax revenue fell about 15%, roughly $70 billion, to $381 billion in the fiscal year ended Sept. 30
- Corporate profits reached a record $4.7 trillion
What to watch next
- Congressional response to the report
- Future changes to corporate tax laws
- Impact on the US federal deficit
confidence 100%Sources used for this update (14)
- Fortune — Think tank: 114 companies paid no current federal income tax but still aren’t biggest hit to deficit
- USA Today — More than 100 big companies paid no federal income tax in 2025
- View from the Wing — Bernie Sanders Blasts United, Southwest And American For Not Paying Federal Taxes — He's Actually Wrong
- SuaraGarut.ID — Airline Tax Records Challenge Bernie Sanders Claims
- NationofChange — Largest U.S. corporations paid 10.4% federal tax in 2025, ITEP finds
- Demokratis.co.id — US Corporations Paid Record Low 10.4 Percent Tax Rate in 2025
- BigGo Finance — Tesla, Disney Among 114 Profitable U.S. Firms That Paid Zero Current Federal Income Tax Last Year
- Lake Geneva News — Badger High School theater students to present 'Radium Girls'
- Institute on Taxation and Economic Policy — Interactive: Corporate America Paid Less Than Ever in 2025
- fortune.com — Think tank: 114 companies paid no current federal income tax ...
- itep.org — 114 Profitable Corporations Paid Zero Federal Income Tax in ...
- vcptrading.com — Think tank: 114 companies paid no current federal income tax ...
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