Key facts
- Corporate tax revenue fell 15% to $381 billion in the fiscal year ended October 1.
- The decline was approximately $70 billion.
- Tax cuts signed by President Trump allow companies to deduct AI investment costs more quickly.
- Analysts suggest these breaks have reduced revenue more than anticipated.
US corporate tax revenue declined by approximately $70 billion, or 15%, to $381 billion in the fiscal year ended October 1, despite record company profits. This decrease follows a similar drop the previous year and is attributed to tax cuts enacted by President Trump that permit companies to deduct the costs of AI investments more rapidly. Major technology companies have been significantly increasing their spending on AI infrastructure, leading to these accelerated write-offs. Analysts believe these tax provisions have reduced federal revenue beyond initial expectations and could continue to depress corporate tax collections for years to come while profits climb.