Senate Democrats Probe Meta, Amazon, Alphabet, Microsoft Over AI Tax Breaks

Sen. Elizabeth Warren sent letters Sunday to the CEOs of Meta, Amazon, Alphabet and Microsoft, demanding details on tax deductions tied to AI and data center investments under the 2025 Republican tax law known as the "one big beautiful bill" act. Sens. Tina Smith and Jeff Merkley joined the letters, which request responses by Oct. 12. None of the four companies commented. The senators cited sharp declines in federal tax payments: Microsoft's current federal income tax expense fell more than $11 billion between fiscal 2025 and 2026; Amazon's federal bill dropped nearly $8 billion in fiscal 2025; Alphabet's combined federal and state expense fell over $7 billion; and Meta's federal bill shrank to $2.8 billion from $9.6 billion despite steady profit. Meta's decline was tied to $72 billion in capital expenditures, largely data center and AI spending potentially deductible under the law. The lawmakers also noted each company donated $1 million to President Trump's inauguration and lobbied Congress before passage.