You know how you sometimes hear about highflying companies sending miserly tax checks to Uncle Sam? Well, buckle up — SpaceX might just be the star of that show. According to a New York Times exposé, SpaceX has privately told investors that because of a 2017 tweak to the Tax Cuts and Jobs Act, it may never have to pay federal income tax, even if they do succeed in helping mankind colonize Mars.
TCJA
Sparks Just Got Pricey
By now you’ve seen the clip. A kiss cam at a Coldplay concert outside Boston zoomed in on a couple enjoying a night of yellow lights and “Viva La Vida.” Except it turns out they weren’t just anyone. They were both high-level execs at the same company. Both married. Just not to each other.
The Devil’s in the Deductions-Digging Into the “Big Beautiful Bill”
You already know the highlights: the Big Beautiful Bill (BBB) is Congress’s latest effort to stuff 10 pounds of tax cuts into a five-pound bag. It locks in most of the 2017 Tax Cuts and Jobs Act. Marginal rates stay low. The standard deduction stays chunky. The qualified business income deduction lives to fight another day. Cue the confetti (and another round of Roth conversions while you’re at it).
Follow the Bouncing Ball
For decades, Republicans have been the party of tax cuts. But now, those at the top of the financial food chain may find themselves in for a surprise that reflects the Republican party’s evolution from the party of the rich to the party of the working class.
Jump Into the Void
Don’t look now, but April 15 is almost here! Ordinarily, that means money gushing in for our friends at the IRS. Last year, they took in $5.1 trillion, or 95% of all government revenue. Since then, the economy has grown 2.8%, suggesting we should see a similarly sized increase in revenue.
“Don’t Drive Angry!”
Three hundred sixty-four days out of the year, Punxsutawney, Pennsylvania is a sleepy one-horse town of 5,800 souls, nestled in the foothills of the Appalachians 84 miles northeast of Pittsburgh. But on that other glorious day of the year, it’s the center of the universe. On February 2, a mangy groundhog named Phil dons a top hat and comes out of his hole to look for his shadow. If he sees it, we’re doomed to six more weeks of winter. If not, spring is on its way.