Is Amazon Too Big to Tax?


#1

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.


#2

No, Amazon is not too big to tax.


#3

Great assessment Monte. Don’t address that companies like Amazon shelter their money to avoid paying taxes - which was the point of the OP.


#4

It was all inclusive…


#5

Don’t bother. 90% of his responses are worthless. Maybe 10% make a point.


#6

I get why Amazon is trying to make the best arrangement possible for taxes. If I could negotiate how much I got taxed believe me I would do it without hesitation. If their new HQ is going to add or bring with it thousands of jobs then everybody wins - at least in the state lucky enough to win the competition.


#7

I always find it interesting how little some know about taxing business.

Like everything a business spends it’s passed to the consumer in the cost of goods and services.

One thing I’m amazed at is how the US gov’t taxes profits made in foreign countries. What benefit does a company like Apple, Microsoft get from the US when the sell and make profits overseas? None. The risk is theirs alone.

Why would any company with foreign profits return them to the US?

If they did and I owned their stock, I would sell it in a second. But that’s just me.


#8

What Jeff Bezos doesn’t want you to know is that Amazon is going to destroy more American jobs than China ever did.

“No other retailer can come close to this kind of [profit] loss without a catastrophic result. … Amazon’s earnings report underlines why the company is accelerating — they’re investing more money directly back into their business than any other retailer can afford,” Weitz said.

But for retail workers, Amazon is a grave threat. Just ask the 10,100 workers who are losing their jobs at Macy’s. M, -1.19% Or the 4,000 at The Limited. Or the thousands of workers at Sears SHLD, -1.24% and Kmart, which just announced 150 stores will be closing. Or the 125,000 retail workers who’ve been laid off over the past two years.
Amazon and other online sellers have decimated some sectors of the retail industry in the past few years. For instance, employment at department stores has plunged by 250,000 (or 14%) since 2012. Employment at clothing and electronics stores is down sharply from the earlier peaks as more sales move online.
If Amazon can capture 40% of the GAFO market within five years (as seems likely), about 1.5 million jobs at brick-and-mortar stores could be lost. Add in the jobs Amazon will kill at grocery stores, drugstores, warehouses and delivery services, and the total would be well over 2 million.


#9

That may well be true. What would be your answer to that?