Posted on 02/15/2019 3:35:48 AM PST by BadLands59
Amazon, which doubled its profits and made more than $11 billion in 2018, won't pay any federal income taxes for the second year in a row, the Institute on Taxation and Economic Policy reported on Wednesday.
The company will not be required to pay the standard 21 percent income tax rate on its 2018 profits, and is claiming a tax rebate of $129 million, which ITEP describes as a "a tax rate of negative 1 percent."
Amazon drew ire in 2018 for not paying federal taxes on its $5.6 billion in profits the year before, which was made possible due to tax credits and stock-based compensation, reports Politifact. Last year was the first time Amazon paid no federal income tax whatsoever.
From 2011 to 2016, Amazon payed federal income tax at a rate of 11.4 percent — less than half of the national rate of 35 percent. Due to President Trump's corporate-friendly tax cuts, Amazon will pay any deferred or postponed taxes at the lowered rate of 21 percent rather than the previous rate of 35 percent, per Politifact.
Based out of Washington state, which has no income tax, Amazon has also been free from state filings on income. Marianne Dodson
I’m really not having a problem with this. It was presented to me once upon a time that corporations do not pay taxes anyway. They collect taxes and pass them on to the government so all taxes are paid by individuals.
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I’ve heard that many times, too. It is not true. The insinuation is that tax rates don’t matter because the companies don’t pay it anyway.
I've often wonder if corporations should pay tax anyway.
If profit is paid out in salary it's taxed by those receiving it.
If profit is paid out as dividends it's taxes by those receiving it.
Taxes are, if there's any pricing power at all, built into the consumer cost of the item and passed along just like cost, transportation, etc.
Granted retained earnings wouldn't be taxed but those are usually used to reinvest in the company and/or shore up the companies financial position.
I do lust after some of the tax advantages corporations have that individuals don't get; if the Feds are really worried about health care costs let us write off 100% like corporations are allowed to.
No fan of Bozo but the tax code should never be used for punishment.
Taxation is theft.
Yes, nobody asks how tax Bezos paid.ill bet it was in the millions.
This is part of a background campaign to get the sheeple angry about companies and people not paying "their fair share." It is the only way the leftist/socialists can sell their garbage ideas. A 70% or even 90% tax rate is an insane idea. Insane. Want to make the US a miserable socialist hell-hole with quadruple digit inflation like Venezuela? This is how you do it.
But the socialists who would rather rule over hell than sit on the sidelines in paradise don't care. So they are planting the idea in peoples minds that all these big companies and wealthy individuals need to pay more, much more. So they'll beat this drum softly in the background for weeks and months, and start floating proposals...
I’m not a supporter of Amazon. It sure is fun watching all these leftists back bite each other in New York.
It sounds like they’re following the law. How many of us want to pay more tax than we’re required by law to pay?
Cuomo, DeBlasio, Bezos, AOC,Omar- scum all!
True. Many folks do not understand a ‘profit margin’.
The Government is a silent partner in business. Who needs to own the means of production when you have complete control.
Anyone who files a Schedule C can do this. Farmers can do this.
And what about the overall costs to the community? Surrounding communities have increased expenses for roads, public safety, schools, sewers/water maintenance etc, and who ends up paying? The little guy. Amazon and other companies getting a break is disadvantageous in so many ways. What's wrong with a level playing field?
As long as they are not taking taxpayer money through subsidies and H1Bs cool.
Ok, so who in the hell are they and how do they know this? Has Amazon declared their 2018 tax liability?
Color me skeptical. Perhaps it will turn out this way, but this sure smells like a way to inspire discontent and hate for business by those who want Fedzilla to confiscate more $ to distribute to people who don't do anything to deserve it.
I agree. There should be no tax on business, only individuals. Also, I’ve worked for an on-line business whose sales required collecting various sales taxes from some states. It’s a cost that customers pay plus the federal corporate tax.
People that promote corporate taxes are divorced from reality.
FWIW, it’s very hard to open a business starting out if you have to pay taxes and follow rules the established company negotiates their way out of.
Absolutely correct. Taxes are like any other expense.
Exactly. Tax aversion is not a crime. The first thing I was taught in my taxation class forty years ago was that we need not pay a dime more in taxes than required by law.
If the libs don’t like it, change the law.
You are reading a fraudulent news story.
Amazon broke no law and their taxes were based on the previous years tax loss.
On Another note Amazon got a deal with NY city and state to open a hub.it would have brought tens of thousands of jobs to the community. The City/State offered tax incentives. The communists protested due to tax incentives. So Amazon is backing out because of the massive violent communist protests led by local politicians. So no jobs for the community. And the protestors are happy because they defeated capitalism.
Easy
File your Form 1120 and apply your loss carry forward that is good for 15 years
I ran a modest single person LLC for years. We had more than six figures in revenue every year after the second year. We probably paid income tax every third year. If you know the tax rules, it’s actually pretty straight forward.
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