Menu

Tax & Accounting News

TaxBuzz Top 5 - SpaceX Seems to Have Found a Way to Avoid Taxes, Vegas Tourism Slump Leaves Tip Workers on the Losing End & More

by
Rebekah Barton
on
8/15/2025
TaxBuzz Top 5 - SpaceX Seems to Have Found a Way to Avoid Taxes, Vegas Tourism Slump Leaves Tip Workers on the Losing End & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. SpaceX Boasts It's Found a Way to Avoid Taxes

Trump-Musk-GettyImages-2210007027-2500
Credit: Joe Raedle/Getty Images

Recent reporting by the New York Times and other sources indicates that SpaceX, under Elon Musk’s ownership, may never pay federal income tax—legally—thanks to a 2017 provision in the Tax Cuts and Jobs Act signed by President Trump. The policy eliminated the expiration of loss carryforwards, enabling companies to indefinitely apply past losses against earnings.

SpaceX reportedly racked up about $5 billion in losses by late 2021, primarily due to years of heavy investment and development . But recent years have seen a dramatic turnaround: bolstered by revenue from Starlink and federal contracts, SpaceX is projected to post $15.5 billion in profit in 2025. Yet because of the tax carryforward, the company may still pay little to no federal income tax.

Experts argue this benefits a firm that is thriving—not one in need of rescue. Danielle Brian of the Project on Government Oversight calls the move “quaint,” noting that the tax break was intended for struggling businesses — not private space giants enjoying substantial government contracts.

Additionally, SpaceX’s strong reliance on government funding—primarily through Pentagon and NASA contracts, which once accounted for up to 84% of its revenue—adds to the controversy. This confluence of massive public funding and near-zero tax liability raises serious questions about fairness and policy design.

2. Vegas Tourism Slump Leaves Tip Workers on the Losing End

Tipping-GettyImages-1044177810-2500
Credit: Igor Vershinsky/Getty Images

Las Vegas, one of America’s most tourism-dependent cities, is feeling the sting of fewer visitors — and service workers are taking the biggest hit. Despite President Trump’s “no tax on tips” policy, bartenders, dealers, and other tip-reliant employees are seeing shrinking incomes as fewer tourists fill casinos, restaurants, and hotels.

Per Yahoo! Finance, Senate Majority Leader Nicole Cannizzaro (D-Las Vegas) summed up the concern during a bill hearing: “The tip tax break won’t mean much if there’s no one at the gaming tables or no one dining out.”

The numbers tell the story. In April, Las Vegas welcomed 3.3 million visitors — down 5.1% from last year. Year-to-date visitation is down 6.5% for 2025, according to the Las Vegas Convention and Visitors Authority. Harry Reid International Airport reported a 6.3% drop in passenger traffic in June, with domestic and international arrivals both sliding.

Nationwide, the World Travel and Tourism Council projects a $12.5 billion loss in international visitor spending this year. WTTC president Julia Simpson blamed the decline on U.S. policy, noting that “other nations are rolling out the welcome mat” while America sends the opposite signal.

The downturn spans multiple markets, with fewer arrivals from Canada, the U.K., Germany, and South Korea. Factors include strained trade relations, high-profile detentions at U.S. borders, and government travel warnings — all contributing to a chill in the tourism pipeline. For Las Vegas’ tip-dependent workers, the result is fewer customers, smaller payouts, and growing uncertainty.

3. India's Modi Signals Self-Reliance Amid Trump Clash

Trump-GettyImages-2194993362-2500
Credit: Anna Moneymaker/Getty Images

On August 15, 2025, Prime Minister Narendra Modi delivered a high‑stakes Independence Day message from the Red Fort, underscoring his pledge to shield farmers while steering India toward bold self‑reliance amid escalating tensions with the United States.

Without naming the U.S., Modi alluded to the mounting tariff pressure—U.S. President Donald Trump recently imposed additional 25% duties on Indian exports tied to Russia oil imports, pushing total tariffs up to 50% on key sectors such as textiles, footwear, gems, and jewelry. In response, Modi vowed that “farmers, fishermen, cattle rearers are our top priorities,” proclaiming, “India will never compromise when it comes to protecting the interests of our farmers.” 

To counter this external shock, Modi announced a reduction in Goods and Services Tax (GST) rates effective October, timed strategically ahead of the Diwali shopping surge to boost domestic consumption. He doubled down on the ‘Swadeshi’ ethos—urging citizens to back domestic goods—and vowed to ramp up Indian-made production across critical sectors, from EV batteries and fertilisers to jet engines, semiconductors, and defense systems. A new defense initiative dubbed ‘Sudarshan Chakra’—loosely linked to the Russian S‑400 system—was unveiled as part of bolstering national resilience.

Modi’s message: strengthen India from within, protect core constituencies, and resist external economic coercion—all while protecting the rural backbone that underpins the nation.

4. Trump Treasury Tightens the Screws on Solar & Wind Tax Credits

treasury-GettyImages-699696418-2500
Credit: Richard Sharrocks/Getty Images

President Trump’s Treasury Department issued a new rule today that makes it significantly harder for solar and wind developers to claim federal tax credits, altering the longstanding definition of "beginning of construction" to disqualify many larger projects from lucrative incentives, says Politico.

Under the updated guidance, developers can no longer rely on the old safe harbor—such as spending 5% of project costs or initial prep work—to qualify. Instead, they must show "ongoing physical construction" from the outset. Only small-scale solar projects (under 1.5 megawatts) may still use the 5% safe harbor. This change takes effect for projects beginning after September 2, 2025, and the rule was issued without public notice or comment.

Industry stakeholders are alarmed. Critics argue the guidance contradicts the original intent of Congress, injects legal ambiguity, and could derail hundreds of renewable energy projects in development. Developers warn this shift may inflate energy costs and disrupt investment pipelines.

Separately, the Data Center Coalition—representing tech giants like Google, Amazon, and Microsoft—urged Treasury to reverse course, highlighting how these changes could undermine clean energy infrastructure critical to supporting massive data-driven growth.

5. Montana Launches $400 Property Tax Rebate for Homeowners

Montana-GettyImages-1319525178-2500
Credit: Shunyu Fan/Getty Images

Starting August 15, 2025, Montana homeowners can apply for a one-time rebate on their 2024 property taxes—up to $400 for their primary residence—via the online portal getmyrebate.mt.gov or a paper form, with applications accepted through October 1. All rebates will be delivered as paper checks.

Helena NBC affiliate KTVH shares that eligibility requires that the homeowner owned and resided in the property for at least seven months during 2024 and paid property taxes on it. Applicants must provide their names, Social Security numbers, the amount paid, and the property's geocode, which appears on tax bills or can be found through the Montana Cadastral site.

This rebate is part of an interim tax relief measure introduced by the legislature while broader homestead tax rates—which lower taxes on primary residences, long-term rentals, and smaller commercial properties—are phased in. Those rates fully take effect in 2026. Notably, homeowners who receive this rebate will be automatically enrolled in the homestead rate, provided they remain in their home.

In previous years, refunds were higher—up to $675 in 2023 and 2024—but this year’s rebate is a one-time interim step toward the longer-term reform. In 2024, over 211,000 rebates were issued.

Which headline this week most interests you?

Feature Image Credit: Karl Weatherly/Getty Images

share this post
Search for matches...
Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Get Started

Related Posts

Latest Posts