Is Amazon Bad for Taxpayers?
See what has been reported about Amazon in other communities, and judge for yourself.
Amazon founder Jeff Bezos will step down as the company's chief executive officer this summer, after more than a quarter-century at the helm of the retail, logistics and tech powerhouse. Bezos will become Amazon's executive chairman and remain its biggest shareholder, the company said on Tuesday. He will hand over the CEO reins to Andy Jassy, the head of Amazon's cash-cow cloud computing division.
In 2018, Amazon paid $0 in U.S. federal income tax on more than $11 billion in profits before taxes. It also received a $129 million tax rebate from the federal government. Amazon’s low tax bill mainly stemmed from the Republican tax cuts of 2017, carryforward losses from years when the company was not profitable, tax credits for massive investments in R&D and stock-based employee compensation.
Last year, Yahoo Finance reported that Amazon (AMZN) paid a shockingly low amount in federal income taxes in 2018 on more than $11 billion in profits: $0. But this year, while the company says it has paid “billions” in taxes for the year 2019, in reality it only paid $162 million in federal income tax — an effective tax rate of 1.2% on over $13 billion in profits.
The big six US tech firms have been accused of “aggressively avoiding” $100bn (£75bn) of global tax over the past decade. Amazon, Facebook, Google, Netflix, Apple and Microsoft have been named in a report by tax transparency campaign group Fair Tax Mark as avoiding tax by shifting revenue and profits through tax havens or low-tax countries, and for also delaying the payment of taxes they do incur.
Amazon, the e-commerce giant helmed by the world’s richest man, paid no federal taxes on profit of $11.2 billion last year, according to an analysis of the company’s corporate filings by the Institute for Taxation and Economic Policy (ITEP), a progressive think tank. Thanks to a variety of tax credits and a significant tax break available on pay handed out in the form of company stock, Amazon actually received a federal tax rebate of $129 million last year, giving it an effective federal tax rate of roughly -1 percent.
Amazon’s recent decision to pull HQ2 out of New York City has reignited an older debate about why the company pays “no taxes.” One graphic, for example, produced by data journalist Mona Chalabi and subsequently reshared by House member Alexandria Ocasio-Cortez among many others, shows two superimposed graphs comparing Amazon’s quickly growing profit next to its negligible taxes over the last nine years.
New York (CNN Business)Amazon hasn't paid any taxes to the US government in the past two years. Actually, Amazon received hundreds of millions of dollars in federal tax credits in 2017 and 2018. That might seem nuts, considering Amazon is the third-most valuable company in the world and earned a record $10 billion last year. But critics of Amazon's tax bill aren't accusing Amazon of doing anything improper.
While some people have received some surprise tax bills when filing their returns, corporations continue to avoid paying tax — thanks to a cocktail of tax credits, loopholes, and exemptions. According to a report from the Institute on Taxation and Economic Policy (ITEP), Amazon (AMZN) will pay nothing in federal income taxes for the second year in a row.
Amazon will pay $0 in federal taxes this year — here's how the $793 billion company gets away with it
The company's tax payments are not keeping up with its great wealth. OK, that's a profound understatement.
Three months ago, the Amazon chief executive Jeff Bezos effectively declared that his company would try to lose money. Instead, Amazon declared on Thursday the largest profit in its history. It was a bit awkward. Companies are supposed to make money, for sure. But this comes at a moment when politicians and the public are wondering if America’s digital superstars are so powerful — and perhaps, tilt the game to their advantage — that they simply can’t be beaten.
There’s a multi-trillion dollar trend completely upending Wall Street… With some of the biggest names in the business such as Amazon’s Jeff Bezos and the world’s largest asset manager, BlackRock jumping on board. And they’re not alone. Apple, Google, and even some of America’s leading automakers are completely shifting gears to accommodate investors’ demands to conform to this new financial reality.
Small business owners who say they were mistreated by Amazon are calling on Congress to grill Amazon founder Jeff Bezos, who is expected to testify on Monday. In a call arranged by the Institute for Local Self-Reliance advocacy group, three small business owners who sold products like cosmetics and outdoor sports gear said they felt used, squeezed, and ultimately disenfranchised on Amazon, a platform they felt they had to use. The ILSR is a part of the Athena Coalition, a pro-labor organization that has long criticized the tech giant.