Amazon Made $5.6 Billion In 2017, But Didn't Pay Any Federal Income Taxes In 2017

Submitted by: fancylad 6 months ago in News & Politics


They're also getting a $789 million tax cut thanks to a new White House tax law in 2018. Tell me how the poor are cheating the system.

An excerpt from Seattle Business:

During the year 2017, Amazon announced that it would be opening a second $5 billion headquarters, bought Whole Foods for $13.7 billion, its stock price grew by 56 percent, and CEO and founder Jeff Bezos became the first person to have a net worth over $100 billion since Bill Gates in 1999, but one thing it didn’t do for the year was pay a single dollar in federal income taxes.

According to a new report from the Washington, D.C.-based Institute on Taxation and Economic Policy (ITEP), Amazon says that the e-commerce giant “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 report said.
There are 21 comments:
Male 2,603
Stories like this always make me laugh companies like this don't pay tax ever. Tax loopholes are a myth.  Taxes are paid by the end user, all tax on a company are paid by the price of their product. And laws that say you can't raise you'er prices to cover a tax will just be covered some other way or when there tax liability ends.
  If you tax a company you just raise the price of their product.  The tax codes need to be redone but there such a mishmass of problems it will likely never be "fair", the tax code is millions of pages long. There are a number of more equitable methods of collecting tax but we will probably never see them "He who controls the money controls the universe".  
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Male 906
casaledana Amazon is the American consumer economy. Taxing it would be redundant. But that is the American way. Taxes are best levied coming and going. With both being levied against the consumer. 
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Male 2,603
toetagmodel2   Not sure what you mean by coming and going, but I have always been in favor of a small tax on anything that is sold right down the line until it reaches the consumer who will also pay a small tax. If the articles I have read are correct this helps to spread out the tax burden equal and does not hit the lower incomes hard but they still pay their share. And this does not stop welfare types of help to aid the extremely poor.
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Male 906
casaledana My point was mainly that taxes are multifaceted and always are charged to the end user. Income tax is 15% right off the top, then sales tax. Any tax a corporation pays is built into the price of the good or service being purchased. 
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Male 6,496
I don't know if it is just a Washington state thing but they are starting to charge tax on Internet purchases. 
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Male 724
Where do we start? How many people did they employ? New equipment? How much property tax did they pay? We don't get the particulars on this, their deductions, write offs, etc. If they had done something illegal don't you think someone in the IRS would jump all over it? Or do you want them to just give the US money they don't have to give?
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Male 2,172
do you want them to just give the US money they don't have to give?

Making an awful lot of assumptions there.

Businesses were fine for CENTURIES paying both expenses and taxes. Why is it all of a sudden now no business can stay afloat without avoiding their tax obligations entirely? Is it maybe because businesses purchased politicians to reduce their tax obligations to nothing and now nobody knows how to write a business plan that takes taxes into account anymore?

The system is corrupt. It's been corrupt for a long time. Trying to fix it will require businesses to pay for expenses they didn't prepare to pay for. It's a difficult conundrum, but it does need to be fixed. Closing tax loopholes would go a long way towards paying down our ever-increasing deficit.
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Male 6,723
Shelworth We want them to pay taxes on the profits of their earnings, just like you do.  Is that so hard?

No one is saying they cant have deductions, amazon has a lot of overhead clearly, that said, how come they get to keep every dime they earn and we don't?

You act like they are fucking paupers sheesh.
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Male 6,723
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Male 724
daegog Please explain how this effects Poor People, does Amazon want people to be poor? Or does Amazon want people to buy their crap? Can't be both.
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Male 6,723
Shelworth What makes you think poor people cannot buy crap from amazon?

Poor does not ONLY mean begging under a bridge for loose change.

Im poor as shit and I buy stuff from amazon all the time.  Am I the poorest person in the world?  No.  If I stopped working would I be that guy under the bridge begging for loose change?  probably.

Amazon's tax cuts effect you too ya know.  We still have a massive military and someone has to pay for it, clearly amazon isn't chipping in a single dime, that leaves you and my broke ass to cover for them.

Would it be so awful if they paid taxes like we do?
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Male 6,723
I had heard that was 5.6 billion in earnings, not profits.  I will root around see what comes up.
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6,390
most companies don't pay taxes 
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Male 44,429
dm2754   Large companies don't pay.  Small ones do
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Male 1,709
Gerry1of1 Actually that's not entirely true. As a small business owner, my business never paid taxes in the time is existed because of expenses, write-offs and other various (legal) means to lower tax costs. It's a matter of knowing tax law and using it to your advantage. 
I, on the other hand, had to pay taxes on my own personal income which was minimal since I spent 100% of my time running my business and only paid myself enough to pay my bills and save a little cash.
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Male 943
squidbush Sure it's not illegal, but it's a race to the bottom that mostly benefits those that can afford it. If huge companies making huge profits get local tax breaks, and additionally take advantage of federal tax breaks, and all the small business owners claim deductions that shrink their taxable income to the lowest levels. The lowest income can't pay. Who's left funding the budget? 

Not saying a company should or business owner should be volunteering to pay more in taxes, but the politicians who don't seem to slash their salaries/benefits along with tax cuts they push, should be looking at this objectively, and finding out what balance works best for the whole country not just based on opinions of those who can afford to lobby.
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Male 17,664
If you really want to fix the tax code, take away all the tax breaks, refunds and loopholes. Then you can fix the deficit and reduce the tax rate at the same time.
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Male 17,664
Draculya in Hong Kong, the salaries tax form is 4 sides of paper and the first page just confirms your address and the third page applies only if you owned a business. It takes half an hour to fill in, including reading the tax guidelines. You get deductions only for pension contribution, charitable contribution, mortgage payments, and dependents. Tax isn't deducted out of salary: you write one cheque or two if you wish. I pay all my tax in one go and avoid nothing; there's no reason to.

Last year I paid 1.5% of my salary or 0.5% of total income. Profits tax is 16.5%. No sales tax or VAT. No capital gains or estate duty. Why tax people for doing things the government wants, like working and investment? There's some rates and government rent on property, but it's only a few percent of my building management fee.

The only things they tax to discourage people is imports duties on tobacco and alcohol and
stamp duty on residential property transactions is 15-20%. Oh and cars get taxed at 100% on purchase and then about $1,000 a year for road tax.

We are fiscally conservative, so even with infrastructure, free health care education, social security, and subsidized housing etc. we run a big surplus each year and the nett reserves are scandalously high considering how little we help the poor.

Legislation and the courts are a big part of America's problems. It's when the legislature tried to manipulate people and corporations to reduce high taxes that there is a desire to avoid or evade. When you let lobbies inflate health care costs and have juries give punitive damages and permit champerty that everything gets expensive and complicated.

Combine that with our culturally low crime rate, high employment/earnings opportunity, resulting in a high standard of living, big city convenience combined a 15 minute commute to the wilderness and constitutionally guaranteed freedoms and that's why I'm here.
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Male 1,023
Draculya I agree, some simplification in the tax system would definitely be beneficial. Unfortunately big corporations like Amazon seem to have governments in their pockets.
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Male 227
Draculya  what is your baseline? 25% flat tax? i like the proposal

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Male 17,664
jarred sorry, I replied to myself above by mistake
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