US Corporate Tax Revenue Falls 15% to $381 Billion as AI-Fueled Write-Offs Cut Bills
Updated
Updated · The New York Times · Oct 17
US Corporate Tax Revenue Falls 15% to $381 Billion as AI-Fueled Write-Offs Cut Bills
1 articles · Updated · The New York Times · Oct 17
Summary
$381 billion in U.S. corporate tax revenue was collected in the fiscal year ended Oct. 1, down about 15% from a year earlier despite record-high company profits, Treasury data showed.
The drop followed a similar decline the previous year and leaves corporate tax receipts down more than a quarter from 2024, the last full fiscal year of the Biden administration.
Republican tax cuts signed by President Trump drove the slide by letting companies deduct investment costs more quickly, a change that coincided with major technology firms pouring hundreds of billions into AI infrastructure.
Analysts say the breaks have reduced revenue more than expected, and executives' plans to keep raising AI spending could depress corporate tax collections for years while further boosting profits.