Tax systems generally expect a higher contribution from the wealthiest members of society. Sometimes, however, large corporations and wealthy businesspeople pay very low taxes relative to their income. A striking example of this is Tesla. It turns out that Tesla, the electric vehicle giant, does not pay federal income tax despite billions of dollars in revenue.
Billions to Executives, Zero to the State!
Research shows that Tesla paid its executives $2.5 billion over five years, while paying nothing in federal income tax. The company even received a $1 million refund from the government. This has sparked a debate on tax fairness.
Tesla Tax The Rich
Tesla’s non-payment of taxes has caused great reactions in society. While calls to “tax the rich” echoed, the company’s behavior further fueled the debate on tax justice. The fact that companies like Tesla do not pay taxes raises the question of whether the rich in general fulfill their tax obligations.
Tesla’s tax issue raises serious questions about tax fairness, not just in the United States but around the world. There is a broad consensus that companies and wealthy individuals should fulfill their tax obligations fairly. However, more effective legislation is needed to prevent such situations.
