Amazon does not really pay taxes? Here is the complicated answer

Democratic presidential candidates have seized information that Amazon.com Inc. would not pay any federal taxes for 2018 while they were demanding changes in the tax system.

A closer look at the multi-year Internet giant's tax returns paints a more complicated picture: Amazon paid taxes somewhere, but at a low rate, probably aided by investment-related deductions and incentives, research and compensation of employees.

Earlier this week, former Vice President Joe Biden pointed to tax payments made by the company during a campaign shutdown in Iowa, saying it should at least pay taxes. He tweeted on Thursday"No company making billions of dollars in profits should pay a lower tax rate than firefighters and teachers."

Amazon tweeted back"We pay every penny we owe. Congress has designed tax laws to encourage businesses to reinvest in the US economy. We have. … Suppose VP Biden's complaint is about the tax code, not Amazon. "

Senator Elizabeth Warren (D., Mass.) Quoted Amazon as proposing a new corporate tax that would cost the company nearly $ 700 million in 2018.

Here are some questions and answers exploring the tax situation of the company.

Click on the Wall Street Journal for more information.