Sen. Bernie Sanders (I-VT) highlighted the tax inequities of major corporations and billionaires, emphasizing the need for wealth tax reform.
What Happened: On Tuesday, Sanders posted on X a list of several major corporations and billionaires who, according to him, paid less in federal income taxes than an individual who paid just $1. The list included Tesla Inc. TSLA, Amazon AMZN, and Nike NKE, as well as billionaires Elon Musk and Jeff Bezos.
Sanders pointed out that these entities paid little to no federal income taxes in various years. For instance, Tesla paid zero federal income tax on $2.3 billion of U.S. income in 2024, as per ITEP data.
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Sanders’ post reflects his ongoing support for a wealth tax, suggesting a levy on the top 0.1% of earners—those with a net worth above $32 million—to generate $4.35 trillion over ten years for initiatives such as Medicare for All.
Sanders’ post comes amid a growing debate on wealth inequality and tax reform. He has been vocal about his concerns regarding the growing wealth gap in the U.S. and the need for tax reforms that do not favor the ultra-wealthy. In a previous statement, Sanders emphasized that programs for working families should not be sacrificed to provide tax breaks for billionaires.
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Why It Matters: The Senator’s call for tax reform also finds resonance with some of his ideological rivals. Recently, the Trump administration has reportedly been considering a tax increase for the wealthiest Americans, a move that Sanders has long advocated for.
As the debate on tax reform continues, Sanders’ post serves as a stark reminder of the tax inequities that exist and the need for reform.
That being said, some X users were quick to point out that with a federal income tax payment of $11 billion in 2021, Elon Musk announced himself as the highest taxpayer in history.
Moreover, Kyle Pomerleau, a senior fellow at the nonpartisan American Enterprise Institute, explained the phenomenon. He said that low corporate tax rates show big corporations are simply trying to minimize their tax burden, just like everyday taxpayers do.
“These low effective tax rates are not reflective of tax evasion,” Pomerleau told USA Today previously. “It’s tax avoidance. Tax evasion is illegal. Tax avoidance is legal.”
Read Next:
- How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.
- These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends
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