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Amazon Will Pay a Whopping $0 in Federal Taxes on $11.2 Billion Profits
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=50172"><span class="small">Laura Stampler, Fortune</span></a>   
Saturday, 16 February 2019 09:25

Stampler writes: "Those wondering how many zeros Amazon, which is valued at nearly $800 billion, has to pay in federal taxes might be surprised to learn that its check to the IRS will read exactly $0.00."

Jeff Bezos. (photo: David Ryder/Getty Images)
Jeff Bezos. (photo: David Ryder/Getty Images)


Amazon Will Pay a Whopping $0 in Federal Taxes on $11.2 Billion Profits

By Laura Stampler, Fortune

16 February 19

 

hose wondering how many zeros Amazon, which is valued at nearly $800 billion, has to pay in federal taxes might be surprised to learn that its check to the IRS will read exactly $0.00.

According to a report published by the Institute on Taxation and Economic (ITEP) policy Wednesday, the e-tail/retail/tech/entertainment/everything giant won’t have to pay a cent in federal taxes for the second year in a row.

This tax-free break comes even though Amazon almost doubled its U.S. profits from $5.6 billion to $11.2 billion between 2017 and 2018.

To top it off, Amazon actually reported a $129 million 2018 federal income tax rebate—making its tax rate -1%.

Amazon’s low (to non-existent) tax rate has been chided by politicians ranging from Senator Bernie Sanders to President Donald Trump.

But even though Trump previously blasted Amazon for its limited state taxes—a single presidential tweet caused the company’s shares to fall by 9%—ITEP notes that its non-existent federal tax payment is a result of the Trump Administration’s corporation-friendly tax cuts. The think tank writes that the 2017 Tax Cuts and Jobs Act not only decreased corporate tax rates from 35% to 21%, but it also didn’t close “a slew of tax loopholes that allow profitable companies to routinely avoid paying federal and state income taxes on almost half of their profits.”

According to The Week, Amazon ended up paying an 11.4% federal income tax rate between 2011 and 2016, which is a contrast to the -1% rate this year.

Amazon has a history of avoiding various sales taxes and made headlines last summer after successfully convincing Seattle Mayor Jenny Durkan to repeal a tax that would have helped the city’s homeless population.

Furthermore, New Yorkers made waves after learning about the significant tax cuts Amazon would receive if it built a headquarters in Long Island City.

As a result of public and political contention, Amazon canceled its plans to expand to New York Thursday.

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+7 # johnescher 2019-02-16 11:58
This is Amazong. Everyone should pay their share.
 
 
+4 # Caliban 2019-02-16 14:09
The Trump corporate tax plan in action.

If Bezos's WaPo would make nice to the Fake Prez, DT would be crowing his approval across the Twitter world.
 
 
+1 # Rodion Raskolnikov 2019-02-16 21:36
Most Americans -- like me -- are paying a lot more in tax this year. The new tax bill took away all of the deductions people like me planned to use to offset income. But obviously, it did not take any deductions away from Bezos and the other billionaires.

This is not sustainable. No nation can have a future with inequalities like this. The middle class is being squeezed out of existence.

Republicans are incapable of changing this. so far democrats have shown themselves also incapable of change. If that goes on, an independent will be president and the congress will be changed.

Amazon has driven out of business more independent retailers than even WalMart. Amazon is pure evil. It is capitalism of the worst sort.
 
 
0 # DongiC 2019-02-17 03:42
Bezos + Trump = a combo that takes all America for a ride. Please, say it ain't so.
 
 
+2 # RLF 2019-02-17 07:40
Amazon...the new Walmart. If you patronize them then you're part of the problem!
 
 
0 # Citizen Mike 2019-02-18 09:26
And they had the gall to try to intimidate New York into giving billions away as incentive to relocate there. But the New Yorkers led Bezos to the door by the nose! Time for the public to boycott Amazon.