Big business and billionaires have long wielded outsized power. But one such multi-billionaire, Warren Buffet, argues that if the top corporations paid what Berkshire Hathaway does in taxes, everyday Americans wouldn't have to pay any income taxes.

Here's the kicker: 88 of the most profitable companies in the United States paid $0 in federal income tax in 2025, according to a recent report (1) by the Institute of Taxation and Economic Policy. This means you paid more in income tax than say Citigroup, who earned $4.45 billion. Let that sink in.

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In 2024, Berkshire Hathaway was the highest taxpayer, contributing a whopping $26.8 billion (2) — which was around 5% of all corporate income taxes collected by the government.

At Berkshire Hathaway's annual meeting, Buffet said this (3): "If we send in a check like we did last year, we send in over $5 billion to the US federal government, and if 800 other companies had done the same thing no other person in the United States would've had to pay a dime of federal taxes." No income taxes, social security taxes or estate taxes.

The United States taxes resident corporations at a flat rate of 21%. As outlined in the report (1), corporate tax avoidance has increased this year, due in part to two packages: One Big Beautiful Bill Act (OBBBA) and the 2017 Tax Cuts and Jobs Act (TCJA). This tax rate sat at 35% (4) before the cuts.

As per the 21% federal income rate and the total income of the 88 corporations listed, they should have paid a collective $22.1 billion (5) in 2025. Instead, they received $4.7 billion in rebates.

Companies like Tesla, United Airlines, PayPal, Coinbase, CVS, Walt Disney and dozens more have circumvented income taxes. Institute of Taxation and Economic Policy revealed the top three federal tax avoiders (6) are Amazon, Meta and Alphabet (the parent company of Google and YouTube).

The research cited the companies used accelerated depreciation (7), the federal research and experimentation (R&E) credit, the Foreign-Derived Deduction Eligible Income (FDDEI) deduction and executive stock options to bypass income taxes.

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For small businesses and households, news like this can sting, especially with current inflation, cost of living pressures and widespread uncertainty. Particularly when many of these companies are making headlines for big AI plans and mass job casualties as a result.

Beyond the frustration that hardworking individuals are paying more than the bigger corporations, reduced taxes will also have flow-on effects on the very services they rely on. Schools, roads, public transport and healthcare, for example.

While there's not a whole lot that individuals can do about the goings on of big business, you can vote with your dollars, so to speak. Scan the list of companies avoiding income taxes and take your hard-earned money elsewhere.

Support the companies and leaders who support the people. Voting, voicing and protesting all matter, too.

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Institute on Taxation and Economic Policy (1),(5),(6),(7); Fox Business (2); YouTube (3); Bipartisan Policy Center (4)

This article originally appeared on Moneywise.com under the title: Warren Buffet says 800 US companies could wipe out income tax — but 88 profitable giants paid the IRS $0 in 2025 rebates

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