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Home / Business / Amazon will pay $ 11,800 in taxes on $ 11,000,000,000 for 2018

Amazon will pay $ 11,800 in taxes on $ 11,000,000,000 for 2018



While some people have received unexpected tax bills when submitting their tax returns, companies continue to avoid paying taxes – thanks to a cocktail of tax credits, loopholes and exemptions.

According to a report by the Institute on Taxation and Economic Policy (ITEP) and Amazon (AMZN), income taxes are not paid for the second year in a row.

Thanks to the new Tax Cuts and Jobs Act (TCJA), Amazon's tax responsibility is 21% (minus) of 35% in previous years). But with tax breaks, Amazon Uncle Sam will not pay a penny even though he made more than $ 11 billion in profits in 2018.

How is this possible?

"It's hard to know what exactly they are." "Said Steve Wamhoff, director of Federal Tax Policy at ITEP. "In their public documents, they do not set their tax strategy. So it's not clear what exactly breaks [the company is taking advantage of]. They say vague tax credits. One can imagine various ways in which a company can do this, such as the devaluation breaks extended under TCJA.

Jeff Bezos, Founder and Chief Executive Officer of Amazon.com Inc., will be attending a conference on the aerospace and aviation industry on Wednesday, September 19, 2018 Cyberconference of the Air Force Association at National Harbor in the State of Maryland. (Photo: Andrew Harrer / Bloomberg via Getty Images)

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Revelations about the tax bill come from Amazon despite the President Trump criticized Amazon and Bezos for not paying enough taxes The President had promised that his new tax law would end special interest interruptions and close loopholes, but it is clear that this is not the case That's the case, says Wamhoff. "data-reactid =" 65 "> Revelations about Amazon's tax debt come despite the very public criticism of President Trump from Amazon and Bezos because they do not have paid enough taxes. The president had promised that his new tax law would end special interest rate cuts and close loopholes, but that's obviously not the case, says Wamhoff.

"This is another situation where President Trump's rhetoric is completely disconnected from what he is doing and what his policies are doing," said Wamhoff. "The corporate tax reduction part was true. And they have eliminated some corporate tax rates, but not all.

He added, "Corporate tax revenues were a big loser. We will not see companies suddenly paying more. We see that in the case of Amazon. "

Diminishing tax revenues have only widened the deficits as government debt has risen to over $ 22 trillion.

On 4 September 2018, Amazon briefly touched a market capitalization of $ 1 trillion. (Chart: Yahoo Finance))

Amazon Not Alone

TCJA was largely criticized for the benefits it offered to the wealthiest Americans and large corporations. Wamhoff says it is ironic that the corporate income tax rate has fallen to 21% (previously 35%) as the effective corporate income tax rate was 21% under existing tax laws after taking into account tax breaks and loopholes.

] Therefore, according to Wamhoff, the effective tax rate will probably continue to decline.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) –sm" type = "text" content = "But if anyone thinks that Amazon alone is wrong, last week Netflix also failed to pay US federal or state income taxes according to a separate ITEP report, Netflix has denied these findings, while ITEP claims that Netflix paid $ 131 million in taxes on are foreign revenue . "data-reactid =" 96 "> But if someone thinks that Amazon is alone, that would be wrong. Last week, Netflix also did not pay US federal or state income taxes, despite record earnings, according to a separate ITEP report. Netflix has denied these findings, while ITEP claims Netflix paid 131 million US dollars foreign revenue .

And historically, Wamhoff believes that this story is nothing new. Several companies have avoided paying federal income tax over the years.

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

Amazon earns money in many ways. (Graphics: David Foster / Yahoo Finance)

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