Posted on 02/27/2018 9:12:10 AM PST by Enlightened1
In 2017, Amazon reported $5.6 billion of U.S. profits and didn’t pay a dime of federal income taxes on it. The company’s financial statement suggests that various tax credits and tax breaks for executive stock options are responsible for zeroing out the company’s tax this year.
The company’s zero percent rate in 2017 reflects a longer term trend. During the previous five years, Amazon reported U.S. profits of $8.2 billion and paid an effective federal income tax rate of just 11.4 percent. This means the company was able to shelter more than two-thirds of its profits from tax during that five year period.
Incredibly, Amazon’s corporate tax goose egg for 2017 doesn’t include the effect of a second big tax disclosure: the $789 million one-time tax break the company projects it will receive due to the new tax law. While the Trump Administration’s corporate tax cuts generally took effect on January 1st, the law includes a grandfather clause for companies that (like Amazon) have managed to defer or postpone tax liability from prior years.
Instead of paying these deferred taxes at the previous 35 percent rate, Amazon now gets an extra reward for postponing the taxation of this income: a 40 percent discount from 35 to 21 percent. This is the source of Amazon’s $789 million windfall.
At a time when Amazon is pitting state and local governments against each other in a Hunger Games-style contest over the location of the company’s new headquarters, the company’s new disclosure should cause some consternation among the state officials who have been most willing to pony up billions of dollars in tax incentives.
(Excerpt) Read more at itep.org ...
“What’s wrong is taxing their income as a group, AND as individuals. “
Salaries are a deduction for the corporation.
And yet Bezos won’t quit bashing Trump. Go figure.
Bezos has not given his employees a bonus either. One of the richest men in the world and the cheapest.
Yup. And Amazon, Google, Twitter, Apple, and the rest of these corporations are making out like bandits, while millions of middle class from high tax states are getting screwed. On top of that, those corporations getting Billion dollar windfalls hate Trump and Conservatives, while we Trump supporters are sent the bill to make up for lost cold pirate tax revenue.
Many of us repeated this problem (the elimination of capping of individual deductions to “pay for” slashing the corporate rate) last fall through December until we were blue in the face. No one would listen. I pre-paid some 2018 taxes so as to get less screwed by the IRS this April, but that is a band-aid on a gaping wound.
A friend of mine who owns an accounting and tax consultant business says that many of his contacts in Washington told him that the SALT issue will have to be revisited, because it screws over so many middle class families. But I am not holding my breath on that one.
cold pirate =
corporate
Bezos ought to show a little gratitude and let up a bit on trashing Trump through that paper (WP) he owns.
You didn't really ask that did you????
You're not supposed to, this is all about hating Amazon, not for wondering about silly things like you just did.
Mr. Trump, do something...
At $108 Billion he is the richest if you don't count evil tyrants who don't report income.
New Age Robber Barons
Yes, its time time to stop subsidizing Bezo’s shipping with the USPS.... Its unfair trade competition, and should be illegal.
Here you go,
I think the reason it was done was to pressure States with high taxes like California and New York. It will force them to lower their taxes or risk losing people leaving the State to more tax friendly states like Florida or Texas.
That will never happen.
The states don't care about families and people that work. We are only a well to be run dry for them.
As I said again, and again, and again during the entire Tax Bill debate, it gives a massive tax break to Facebook, Google, Twitter, and Amazon, and raises taxes on millions of us.
Nice.
Dude, go back and look at your previous post and compare it to the article you posted and scan for your error!
Not relevant.
Instead of paying these deferred taxes at the previous 35 percent rate, Amazon now gets an extra reward for postponing the taxation of this income: a 40 percent discount from 35 to 21 percent. This is the source of Amazon’s $789 million windfall.
They are NOT receiving $789 million. They will be paying $789 million less than previously owed.
“Yup. And Amazon, Google, Twitter, Apple, and the rest of these corporations are making out like bandits,”
They crawled into bed and got cozy with the ruling elites. They’re part of the donor class.
Corporations have been doing this for decades! The ruling elites response is throw in more costly regulations that the little guy can’t afford but the donor class can. Screw the little guy.
Spent a few weeks in a formerly communist country when I was a grad student in the early 80’s. There was no middle class!! Just the ruling elites, their money supply, and the peons.
I was so shocked that a relative of mine that was V.P. of a bank, a wife who was a school teacher had less then I did as a student paying her own way.
“Caring” socialism (i.e. manipulating socialist) is just a façade for totalitarianism.
Moscow On The Hudson Coffee Coffee Coffee
The grocery store scene chronicles what a former Soviet slave encounters when he sees a western supermarket for the first time.
Years before this movie was made, a relative of mine was allowed to have a friend of our family was reunited with a relative who escaped from behind the Iron Curtain. The first time they took her to a grocery store, she thought they had played an elaborate ruse on her. She claimed that US government had taken all of the food from the entire state and put it in one place to try to make her think there was this amount of food available in America.
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