By Gadget Review
Publication Date: 2026-10-02 16:14:00
Sen. Elizabeth Warren and Senate Democratic colleagues sent letters on September 28, 2026, to the CEOs of Amazon, Alphabet, Meta and Microsoft. The letters demand details on tax deductions tied to AI and data-center spending under the 2025 One Big Beautiful Bill Act, and companies have until October 11, 2026 to respond.
The central question is whether a law designed to encourage investment handed the biggest AI spenders an outsized tax advantage, and at whose expense.
The Numbers Behind the Inquiry
Company filings cited by lawmakers show tax expenses falling sharply as profits climbed.
According to the lawmakers’ review of SEC filings, Microsoft’s current federal income-tax expense fell by more than $11 billion between fiscal years 2025 and 2026. That decline came even as Microsoft’s pretax income rose by $42.3 billion over the same period.
Nearly $8 billion: that is how much Amazon’s federal income-tax payment fell between fiscal years 2024 and 2025, per the same review.
