What about all those tax loop holes President Trump closed ?
Plus Amazon will be able to pay the taxes from deferred income at the mew 21% tax rate ?
Is Amazon Too Big to Tax?
The company’s founder and CEO Jeff Bezos will continue to be the richest person in the history of the world.
Earlier this week, Matthew Gardner of the Institute on Taxation and Economic Policy reported that Amazon, which recorded $5.6 billion in profits in 2017, paid zero in federal taxes, thanks to “various tax credits and tax breaks for executive stock options.”
The tax bill may have cut the corporate tax rate from 35 to 20 percent, but Amazon had paid only an 11 percent rate over the previous five years, meaning that “the company was able to shelter more than two-thirds of its profits from tax during that five-year period,”
Tax avoidance is not new to Amazon. “More so than any company I can think of,” Gardner told me, “Amazon appears to have built their profit maximization strategy around avoiding taxes at various levels.” Amazon has used local, state, and federal tax laws to its benefit, while doing everything in its power to avoid posting profits.
The fact that it paid a zero percent rate in 2017 comes at an awkward time. As Amazon forces cities and states to offer it tax breaks for its new headquarters, combined with the hundreds of millions of dollars it will rake in next year from the tax bill, the company has become an outlier in the fierce competition to game the system, snatching the crown from Apple to become the country’s most prominent tax grifter. It has done this by being aggressively innovative, but it has reached a new stage in which it has become too successful—too big, if you will—to tax.