Surprising revelations from recently reviewed company papers suggest Elon Musk’s SpaceX has quietly managed to skip paying federal income taxes for nearly two decades, despite being one of the U.S. government’s most essential contractors. That doesn’t sit easily with some observers who feel ordinary taxpayers cover the difference.

According to the New York Times, SpaceX accumulated nearly $5.4 billion in tax losses by the end of 2021. These “loss carryforwards” allow the firm to offset future profits indefinitely—thanks to a 2017 rule change under President Trump. While absolutely legal, critics say it raises awkward questions: how can a company fueled by federal contracts also contribute so little back to federal coffers?

Voices inside the industry whisper about a paradox—Musk boasting SpaceX revenue surpassing NASA’s annual budget, while simultaneously shielding billions from taxation. Some employees admit privately they feel conflicted, proud of the rockets but uneasy about the balance sheet.

For now, nothing suggests the arrangement will change soon. With 84% of its revenue in 2020 tied to government deals, SpaceX has become almost too vital to challenge. Yet the story keeps growing louder, forcing a public debate about fairness, innovation, and accountability.

Read more at Gizmodo.