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Home / Business / Amazon pays $ 0 in tax of $ 11 billion in profit for 2018

Amazon pays $ 0 in tax of $ 11 billion in profit for 2018



<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While someone has received & nbsp; surprise tax bills & nbsp; when returning, companies continue to avoid paying taxes – thanks to a cocktail of tax credits, loopholes and exceptions. "Data-reactid =" 16 "> While some have received some surprise tax bills when they return , companies continue to avoid paying taxes ̵
1; thanks to a cocktail of tax credits, loopholes and exceptions.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "According to a report & nbsp; Institute for Taxation and Economic Policy (ITEP), Amazon ( AMZN ) pays nothing in federal income taxes for the second consecutive year. "Data Reaction =" 17 "> According to a report by the Institute for Taxation and Economic Policy (ITEP), Amazon (AMZN) will not pay anything in federal income taxes for the second consecutive year.

Thanks to the new Tax Cuts and Jobs Act (TCJA), the Amazon's federal tax liability is 21% (down from 35% in previous years). But with the help of tax breaks, Amazon will not pay a penny to Uncle Sam, despite sending more than $ 11.2 billion in profits in 2018.

How is that possible?

"It's hard to know exactly what they're doing," said Steve Wamhoff, ITEP's director of the Federal Tax Policy. "In their public documents, they do not prepare their tax strategy. So it is unclear just like the breaker [the company is taking advantage of]. They say uncertain tax credits. One could think of many different ways a company could do this, like the depreciation breaks that were expanded during TCJA. "

Jeff Bezos, founder and CEO of Amazon.com Inc., listens during a discussion at the Air Force Associations Air, Space and Cyber ​​Conference in National Harbor, Maryland, USA, Wednesday, September 19, 2018. (Photo: Andrew Harrer / Bloomberg via Getty Images)

(Source : Department of Taxation and Economic Policy Analysis of SEC Archives)

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = " text "content =" Revelations about Amazon's tax liability come despite President Trump's very public & nbsp; criticism & nbsp; of Amazon and Bezos for not paying enough tax. The president had promised that his new tax law would quit special interest breaks and gaps, but it is clear that this is not the case, says Wamhoff. "Data React =" 48 "> Revelations on Amazon's tax liability despite President Trump's very public criticism by Amazon and Bezos for not paying enough tax. The president had promised that his new tax law would end special pauses of interest and closing holes, but it is clear that this is not the case, Wamhoff says.

"This is another situation where President Trump's rhetoric is completely different from what he does and what his policy does," Wamhoff explained. "The share of reducing the corporate tax rate was true. And they eliminated some corporate tax rates, but not all." He added: "The corporate tax revenue was a big loser. We're not going to see companies suddenly pay more. We see it for Amazon. »

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Declining tax revenues have only increased deficit, as National Debt has reached balloon up and over $ 22 trillion. "Data Reaction =" 51 "> Falling tax revenues have only increased deficits, as national debt has bubbled up and over $ 22 trillion.

Amazon Affected Cards $ 1 trillion in market value September 4, 2018. (Diagram: Yahoo Finance)

Amazon alone

TCJA was widely criticized because of the benefits it gave to the richest Americans and big corporations . Wamhoff says it is ironic that the corporate tax rate is lowered to 21% (from the previous 35%) because the effective corporate tax rate, according to previous tax rules, was 21%, after considering tax and loopholes.

Therefore, Wamhoff says, we will probably see the effective tax rate fall even lower.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But if anyone believes that Amazon is alone, they would Last year, Netflix also paid & nbsp; US federal or state income taxes according to a separate ITEP report Netflix has disputed these findings while ITEP claims that $ 131 million paid by Netflix is tax on foreign income . "data-reactid =" 68 "> But if anyone believes that Amazon is alone, they would be wrong. Last year, Netflix also did not pay US federal or state income tax according to a separate ITEP report, despite the record profit being posted. Netflix has disputed these findings, while ITEP claims that $ 131 million paid by Netflix is ​​tax on foreign income .

<p class = "canvas-atom canvas text Mb (1.0em) Mb) – sm Mt (0.8em) – sm" type = "text" content = "And historically, Wamhoff says that this story is nothing new Several companies have avoided paying federal income tax over the years he says. data-response time = "69"> And historically Wamhoff says this story is nothing new. Several companies have avoided paying federal income tax over the years, he says.

"These companies have been consistently profitable," he explained. "And they should really pay taxes."

Amazon makes money in many ways. (Graphic: David Foster / Yahoo Finance)

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