Big Tech tax breaks could've funded benefits for millions, Senator Warren finds

"President Donald Trump's "Big Beautiful Bill" is handing out billions in tax breaks, and a new analysis from Senator Elizabeth Warren's (D-MA) office is demonstrating just how substantial those sums are. Under the law, Google's parent company, Alphabet, will save around $17.9 billion in taxes this year, an amount that Warren's office found could've paid for Supplemental Nutrition Assistance Program (SNAP) benefits for 7.5 million Americans."

"That sum could cover Medicaid for around 2.3 million adults, or 5.4 million children, according to Warren's office. Amazon's anticipated tax break for this year is similarly large at around $15.7 billion - enough to provide SNAP benefits for 6.6 million Americans, or Medicaid for 2 million adults. Meanwhile, Microsoft's estimated $12.5 billion tax cut in 2026 could lower Affordable Care Act (ACA) premiums for 1.9 million people."

"The Republican-controlled Congress passed the massive budget bill in July, which includes a trove of benefits for Big Tech. In addition to maintaining a lower corporate tax rate, the government is implementing a more generous research and development write-off system. At the same time, it also introduces sweeping cuts and eligibility requirements for federal programs like the ACA, Medicaid, and SNAP. To fund SNAP benefits for the average of 41.7 million people who received them monthly last year, the federal government spent $99.8 billion."

Estimates show Alphabet will save around $17.9 billion in taxes this year, enough to fund SNAP benefits for 7.5 million people or Medicaid coverage for roughly 2.3 million adults or 5.4 million children. Amazon's tax break is estimated at $15.7 billion and Microsoft's at $12.5 billion in 2026, with potential to fund SNAP, Medicaid, or lower ACA premiums for millions. The budget bill preserves a lower corporate tax rate and expands R&D write-offs while imposing cuts and tighter eligibility for ACA, Medicaid, and SNAP. Federal SNAP spending last year totaled $99.8 billion; emergency partial funding of $4.65 billion is planned during the shutdown.

Read at The Verge