Amazon will pay $0 in taxes on $11,200,000,000 in profit for 2018 | WHAT REALLY HAPPENED


Amazon will pay $0 in taxes on $11,200,000,000 in profit for 2018

While some people have received some surprise tax bills when filing their returns, corporations continue to avoid paying tax — thanks to a cocktail of tax credits, loopholes, and exemptions.

According to a report from the Institute on Taxation and Economic Policy (ITEP), Amazon (AMZN) will pay nothing in federal income taxes for the second year in a row.

Thanks to the new Tax Cuts and Jobs Act (TCJA), Amazon’s federal tax responsibility is 21% (down from 35% in previous years). But with the help of tax breaks, according to corporate filings, Amazon won’t be paying a dime to Uncle Sam despite posting more than $11.2 billion in profits in 2018.

How is that possible?

“It’s hard to know exactly what they’re doing,” said Steve Wamhoff, ITEP’s Director of Federal Tax Policy. “In their public documents they don’t lay out their tax strategy. So it’s unclear exactly which breaks [the company is taking advantage of]. They vaguely say tax credits. One could think of many different ways a corporation could do this, like the depreciation breaks which were expanded under TCJA.”

Webmaster's Commentary: 

While the rest of us may be sweating bullets over our individual tax returns, it looks like major corporations, making huge profits, don't have to pay one dime.

Corporate welfare means that the executives at these corporations live extraordinarily well, thanks to both current tax logs, and their having armies of lawyers and accountants on speed dial.

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA