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
Easy
File your Form 1120 and apply your loss carry forward that is good for 15 years
For a complete understanding why the income tax is really a tax on corporate profits see The Great Income Tax Hoax to understnad this illegally enforced tax. The government knows the income tax is really a corporate profit tax. That Amazon and General dynamics earlier paid no income tax proves it.
My problem with it is that the little guy starting out has to pay taxes.
...
Amazon was a little guy 25 years ago.
And so it goes.
Amazon is just high distribution of gook made product. What we should be doing is putting huge tariffs on the imported products.
Trump is not doing that, is he?
The important question is who is pushing this “news” story and why.
And given the types of uneducated, illiterate, incomprehensible people in Congress, (think, Hank Johnson, Max Waters, that cortez mule, et al) it's no wonder our tax code is so convoluted.
If both parties in government wanted us to have a sensible tax law, we could have it. The present massive mess serves their interest.
Every new business has a 5 year grace period where they do not have to show a profit. After that the “profit” requirement only needs to be $1 over costs. So if you invest back into the business as a good business does there should be no problem, they did give you a 5 year break to build it. But this is not going to relieve the personal taxes owed by the owners, officers and employees of that business. They would have to pay these even if they were working for someone else.
Thing is... While the corporation Amazon owed no taxes just because they exist thousands are employed who did pay taxes.
I'm not a tax the crap out of the rich kinda person, but these lists of dozens and dozens of corps that pay little or no taxes kinda bugs me.
I believe taxation is necessary to pay for things like: common infrastructure (roads), defense (military), our representative's pay, post offices and a few other things.
Taxation used to give billions to other countries, fund the pet projects of politicians, fund programs that benefit a special interest, e.g., Planned Parenthood, fund corporate welfare, fund welfare programs for healthy adults - etc, etc.
Taxation is necessary. It's abuse and misuse is criminal!
“The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money.” - ― Alexis de Tocqueville
Well spoken. Alvin was so prescient.
“How many “little guys” out there are in a position to compete with Amazon?”
Amazon is a retail store. That is probably the most common “little guy” business there is.
They also love to copy good products and outsource them to China junk factories. Then sell them under their own brands to undercut the little guys. Amazon kills products that were designed by little guys and once made much better quality in the USA.
If people continue to not care, it will not be long before they start using lawyer games to outright steal patents from the littlest guys. This already is done by behemoth firms in tech/engineering. He who has the most money for lawyers can crush little competitors with technicalities and legal bills.
The garage inventors that made America Great are becoming too afraid to invest their time. Since big corps are outright stealing more products and ruining little guys lives.
The “little guy” must absolutely be protected against such big corporate shenanigans if America is to stay great.
They already made the profit. Yes. It is an ROI they promised, usually a percentage. If the percentage drops they must increase prices to achieve the same return. As for tax incentives, I am 100 percent against them. They are unfair to everyone. Plus, you are right, there is generally increased infrastructure cost born by the people who do pay taxes. Very annoying.
Another reason to shop elsewhere.
My problem with it is that the little guy starting out has to pay taxes. That makes it near-impossible to compete with Amazon when they don’t pay taxes.
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Amazon was a “little guy” when it started. All businesses that lose money don’t pay tax. Especially the little guys. Amazon lost huge amounts of money for years and are legally allowed to carry forward those losses.
What business is it of ours how Amazon runs its business or how the “little guy” runs his. Its called free enterprise. It’s how we became the greatest engine for prosperity in history of world.
We confuse free enterprise with capitalism which is a rigged system and a movement away from freedom and a transition stage to communism. In capitalism, government would give “big guys” favored status and regulatory breaks for campaign contributions. This insures the capitalist immunity from competition and power over his industry.
Amazon does not make the rules (yet).
We do. If there is unhappiness, look in the mirror.
Just means he has to be smarter, faster, better. Much like the big guys were, when they were little guys.
Trump’s twitter on this should be quite entertaining.
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