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Monday, 8 April 2019

Amazon will pay $0 in taxes on $21,200,000,000 in profit for 2019


Amazon will pay $0 in taxes on $21,200,000,000 in profit for 2019







Thanks to the new Tax Cuts and Jobs Act (TCJA), Amazon’s federal tax responsibility is 21% (down from 35% in previous years). But with the help of tax breaks, according to corporate filings, Amazon won’t be paying a dime to Uncle Sam despite posting 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 Federal Tax Policy. “In their public documents they don’t lay out their tax strategy. So it’s unclear exactly which breaks [the company is taking advantage of]. They vaguely say tax credits. One could think of many different ways a corporation could do this, like the depreciation breaks which were expanded under TCJA.”
Jeff Bezos, founder and chief executive officer of Amazon.com Inc., listens during a discussion at the Air Force Association's Air, Space and Cyber Conference in National Harbor, Maryland, U.S., on Wednesday, Sept. 19, 2018. (Photo: Andrew Harrer/Bloomberg via Getty Images)

‘It’s hard to tell’

Though Amazon might have taken advantage of new breaks and loopholes available under TCJA, this isn’t the first year that Amazon has avoided paying federal tax. The company reported $6.6 billion in U.S. profits in 2018 and paid $0 last year as well.
"Amazon pays all the taxes we are required to pay in the U.S. and every country where we operate, including paying $2.9 billion in corporate tax and reporting $4.4 billion in tax expense over the last three years," an Amazon spokesperson said in a statement.

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