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  • 8 hours ago
Tesla (TSLA) reported paying zero current federal income tax in 2025 despite roughly $5.7 billion in U.S. pretax income, according to an analysis cited by former Labor Secretary Robert Reich.

Reich also highlighted Elon Musk’s performance based compensation package, which could average close to $100 billion per year over a decade if aggressive company milestones are fully met.

Key figures:
• $5.7B U.S. pretax income
• $0 current federal income tax liability
• 1.4M elementary school teachers
• ~$70,000 average annual teacher pay
• Just under $100B combined teacher wages

Tesla paid taxes globally, and Musk’s compensation is not guaranteed income. But when tax outcomes and executive pay are compared to public sector wages, it raises broader questions about how incentives are structured in the U.S. economy.

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00:00Elon Musk could potentially earn close to $100 billion per year under Tesla's pay package,
00:05in the same year Tesla reported paying zero current federal income tax in the U.S.
00:10That contrast sparked a viral post from former Labor Secretary Robert Reich asking,
00:15see the problem here? An analysis he cited says Tesla reported about $5.7 billion in U.S. pre-tax
00:22income in 2025, but owed no current federal income tax using legal provisions like research
00:28credits, depreciation, and past losses. Tesla did pay taxes globally. The zero figure applies
00:34specifically to current U.S. federal income tax liability. Now compare that to roughly 1.4
00:41million elementary school teachers earning about $70,000 on average. Combined, that's just under
00:47$100 billion per year in wages. Musk's compensation depends on hitting aggressive performance targets.
00:58to current U.S. for the salespeople, they're competing with $60,000 on average.
01:00to current U.S. federal income tax, çıkart fat $60,000 on average.
01:00The total U.S. federal income tax for the $70,000 you are going to run into a almacenade,
01:00the total U.S. federal income tax bill or in budget, do an asset.
01:00The job has just worked out and done over $9,000 and the total income tax.
01:00Of $9,000 and the total income tax, the total income tax.
01:00The $60,000 and the total income tax will be $9,000.
01:00However, the other income tax will be $9,000.
01:00The $95,000 as the income tax featuring $50,000 on average.
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