Are some of the biggest corporations really paying nothing in federal taxes?

1. CLAIM — Several major corporations (Tesla, Southwest, Disney, Live Nation, HP, United, PayPal, CVS Health, Palantir, Citigroup, PG&E, 3M) paid $0 in federal income tax in 2025, less than anyone who paid even a penny.[1][2]

2. ASSESSMENT — WELL SOURCED. Available sources, including a detailed ITEP analysis of SEC filings released April 14, 2026, confirm the claim for nearly all listed companies.[1]

3. EVIDENCE — ITEP's report on 88 profitable S&P 500/Fortune 500 companies found they reported zero federal income tax expense on over $105B in combined U.S. pretax income for 2025 fiscal years, based directly on income tax disclosures in SEC filings. Confirmed examples: Tesla ($5.7B U.S. income), Southwest Airlines ($561M), Live Nation ($98M), United Airlines ($4.3B), Disney, HP, PayPal (part of $3.2B group with Toast/Block), CVS Health, Palantir, 3M, Citigroup ($4.45B profits). PG&E unconfirmed in report examples or filings. Tesla's 10-K explicitly shows $0 current federal income tax expense on $5.3B U.S. pretax income, offset by credits/depreciation.[1][3][4] No conflicting evidence found; related X discussion raises offsets like deductions/expansions but does not dispute filings (@shadothecat, @greatimp).

4. SOURCE CHECK — @SenWarren is the verified X account of U.S. Senator Elizabeth Warren (D-MA), posting on April 15, 2026, directly referencing the prior day's ITEP report.

5. CRITICAL CONTEXT — People share this due to frustration over tax fairness, fueled by ITEP's accessible breakdowns showing legal breaks (e.g., R&D credits, depreciation from "One Big Beautiful Bill Act") amid rising deficits. Skepticism stems from incomplete picture—companies pay other taxes—and Warren's advocacy history; legitimate questions on policy impacts remain, as ITEP notes exclusions like private firms/NOL-heavy cases.

STRONGEST SUPPORTING ARGUMENT — ITEP's April 14, 2026, report, analyzing SEC income tax notes from 2025 filings, lists all claimed companies except PG&E as having zero federal income tax expense despite billions in U.S. profits (e.g., Tesla $5.7B, United $4.3B, PayPal group $3.2B), confirmed in Tesla's 10-K showing $0 current federal expense on $5.3B U.S. pretax income due to credits/depreciation.[1][3]

STRONGEST COUNTERARGUMENT — Zero federal income tax expense does not mean zero total federal taxes paid—Tesla's 10-K shows $28M cash federal taxes paid (net of refunds) and $1.4B total tax expense (including deferred/foreign); companies also pay billions in payroll/property/sales taxes yearly, with low rates tied to reinvestments/R&D not evasion.[3][1]

BOTTOM LINE — This is true—the listed companies (all but unconfirmed PG&E) reported zero federal income tax expense on billions in 2025 U.S. profits per their SEC filings, as documented by ITEP.

7. CREDIBILITY — 9

8. EVIDENCE — 10

9. BIAS — LEFT

10. CATEGORY — Politics & Government