More  "It's hard to say"
Although Amazon may have used new breaks and loopholes available at TCJA, this is not the first year in which Amazon has not paid any federal tax. The company reported US $ 5.6 billion in revenue in 2017 and also paid $ 0 last year.
"Amazon pays all the taxes we have to pay in the US and in every country we operate in. An American Amazon spokesman reported a $ 3.4 billion tax bill in the US
According to Wamhoff, the company's evidently non-existent tax law indicates that there have always been issues with corporate tax liability.
"We should know if they had a positive corporation tax liability had it not been for TCJA?" "Wamhoff asked." Could be. It's difficult to say.
(Source: Institute for Tax and Economic Policy of SEC filings)
<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))
More 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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