Microsoft’s new financial disclosures demonstrate the catch-22 facing policymakers interested in taxing AI: massive investment in the sector is lowering tax collected today, and even when the technology becomes profitable loose international tax rules mean the U.S. might not get much new revenue.
“Microsoft’s new tax disclosures raise serious questions about the misalignment of economic substance and where profits are located, and how much revenue the U.S. and other market countries are losing as a result.” – Zorka Milin, Co-Director of the FACT Coalition
New disclosure requirements show that huge American corporations lowered their tax bills by billions of dollars through the use of tax havens in 2025, while U.S. anti-abuse rules struggled to keep up.
New disclosures are shedding light on the large role that tax havens continue to play in shielding American multinational companies from effective taxation, SFRC clears the U.S. Legal Gold and Mining Partnership Act, and more in the latest Just the FACTs Newsletter.
The new tax information in companies’ annual financial reports represents an enormous improvement upon what was previously available, and is only the beginning of a wave of new disclosures pursuant to requirements advocated for by investors, FACT, and our allies.
In this month’s news roundup, Treasury releases reporting form advancing landmark anti-money laundering regulations for U.S. residential real estate markets, FACT now hiring, and other highlights from FACT’s publications and our allies.
