U.S. Democratic Senator Elizabeth Warren posted on social media, accusing Elon Musk's SpaceX of benefiting billions of dollars from U.S. government contracts while paying almost no federal taxes. On Monday local time, Warren wrote on
She blamed Trump's tax reforms, saying Trump and Republicans "manipulate tax loopholes for billionaire corporations" and demanded "no more handouts to corporations."
Warren's comments followed reports that SpaceX has avoided paying federal income taxes on about $5 billion in taxable income since its founding in 2002 by using a legal tax strategy known as net operating loss carryforwards.
The provision, which was expanded indefinitely in 2017 during Trump's first presidential term, allows companies to use early losses to offset future income.
In February, Musk and Tesla Vice President of Finance Sendil Palani denied claims that Tesla had evaded taxes, saying the company had legally carried forward past losses in compliance with IRS regulations.
At the time, Musk acknowledged that Tesla had not paid U.S. federal income taxes for several years, including in 2024, because most of its profits came from overseas sales, but he emphasized the need for comprehensive tax reform to address excessive loopholes.
Documents reviewed by the media show that more than 75% of SpaceX's revenue in 2020 and 2021 came from federal contracts. But the company paid only minimal taxes - including $483,000 to foreign governments and $78,000 in state taxes in 2021.
SpaceX's business is also booming, with revenue expected to reach $15.5 billion in 2025, double the $7.4 billion reported in 2023.
Its satellite internet service Starlink now has more revenue than its rocket unit, with 2.5 million users and 2023 sales of $8 billion.
Warren has previously slammed Musk for conflicts of interest and abuse of government influence. In June, her office released a report titled "Elon Musk's 130 Days," accusing him of more than 100 abuses of power while serving as an adviser to the Trump administration.
She also criticized the Pentagon's award of a $200 million contract to Musk's artificial intelligence startup xAI.