14 Feb, 2019 Get short URL
© Reuters / Nandita Bose
Trillion-dollar-company Amazon skated through 2018's tax filings without paying a cent for the second year in a row. The e-commerce behemoth, which made $11 billion last year, will pay no taxes at all, thanks to 2017's tax reform.
Rather than pay the standard 21 percent corporate income tax rate, Amazon is actually claiming a tax rebate of $129 million, which works out to a logic-defying rate of -1 percent. Aside from the nebulous "tax credits," which the company does not have to spell out in its public filings, Amazon is also claiming a tax break for executive stock options, according to the Institute for Taxation and Economic Policy - a longstanding loophole that permits profitable corporations to dodge federal and state income taxes on almost half their profits.
While President Donald Trump's 2017 tax reform legislation lowered corporate tax rates from 35 percent to 21 percent, it was sold as an incentive for companies to keep their money in the US, instead of stashing it overseas where the IRS couldn't touch it. Now that Amazon and Netflix have both made headlines for using the new regulations to avoid paying anything at all, it remains to be seen whether the legislation's failure to close corporate loopholes will leave the US holding the bag for fiscal year 2018 as the country's national debt inches past $22 trillion - a record high.
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Amazon's tax windfall doesn't even take into account the billions in tax breaks the state governments of Virginia and New York offered the company to open a second (and third) headquarters in their states, though there are rumors that New York is getting cold feet about the unprecedented corporate giveaway. Amazon didn't pay any taxes in 2017 either, though it raked in a comparatively paltry $5.6 billion in profits and extracted a slightly larger $137 million refund.
[Ron: Tell me again why you think the money meme and Capitalism are the best possible methods of organising civilised human life on this planet. While you are at it, please explain WHY corporations that are FICTIONS created on paper by private owners to enable them to pretend that they are NOT responsible for what they DO using those corporations; AND to conceal their covert ownership of the assets and profits controlled by those corporations? See eg: Citizens United v. FEC: Corporate Personhood Must be Eliminated if Humanity is to Survive. – http://abundanthope.net/pages/Ron_71/Citizens-United-v-FEC-Corporate-Personhood-Must-GO-if-Humanity-is-to-Survive.shtml And: How Interlinked Corporations Rule The World. See: http://abundanthope.net/pages/Political_Information_43/How-Interlinked-Corporations-Rule-The-World.shtml See also: Corporations Masquerading as Government in Australia & World Wide. See: http://abundanthope.net/pages/Political_Information_43/Corporations-Masquerading-as-Government-in-Australia-World-Wide.shtml And: How Billionaires Become Billionaires - http://abundanthope.net/pages/Political_Information_43/How-Billionaires-Become-Billionaires.shtml.
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Citizens United v. FEC: Corporate Personhood Must be Eliminated if Humanity is to Survive. – http://abundanthope.net/pages/Ron_71/Citizens-United-v-FEC-Corporate-Personhood-Must-GO-if-Humanity-is-to-Survive.shtml
How Interlinked Corporations Rule The World. See: http://abundanthope.net/pages/Political_Information_43/How-Interlinked-Corporations-Rule-The-World.shtml
Corporations Masquerading as Government in Australia & World Wide. See: http://abundanthope.net/pages/Political_Information_43/Corporations-Masquerading-as-Government-in-Australia-World-Wide.shtml
How Billionaires Become Billionaires - http://abundanthope.net/pages/Political_Information_43/How-Billionaires-Become-Billionaires.shtml
Which Companies Have The Most Tax Havens? - http://abundanthope.net/pages/Political_Information_43/Which-Companies-Have-The-Most-Tax-Havens.shtml
Collusion for Illusion: Australia’s “Big 4″ Banks are All Owned by the Same Financial Interest. See: http://abundanthope.net/pages/Political_Information_43/Collusion-for-Illusion-Australia-s-Big-4-Banks-are-All-Owned-by-the-Same-Financial-Interest.shtml
The Permanent Unemployment & Underemployment Economy – http://abundanthope.net/pages/Political_Information_43/The-Permanent-Unemployment-Underemployment-Economy.shtml