Amazon in the United States: zero tax dollar paid in the last two years – Amazon – Business

The US net giant is worth nearly $ 800 billion, or $ 6,900 billion.

From 2017 to 2018, the company's profits almost doubled from $ 5.6 billion to $ 11.2 billion. Jeff Bezos, entrepreneur and store owner, has become the richest person in the world.

Nevertheless, Amazon has not paid a dollar in federal taxes in the United States over the past two years.

That's what a report by the US think tank Department of Taxation and Economic Policy (ITEP) reveals.

Despite the fact that the corporate tax in the United States rises to 21%, Amazon announces federal tax cuts of $ 129 million in 2018. It is about An effective tax rate of minus 1.2%, according to ITEP estimates.

They also did not pay tax in 2017.

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Trump dissatisfied

The tax reform of the Trump administration of 2017, according to the think tank, explains why Amazon escapes it.

As a result of the reform, the corporate tax went from 35% to 21%. What it has not done is seal more loopholes that allow large companies to avoid paying both federal and state taxes on nearly half of their income, writes ITEP.

In comparison, Amazon paid an average of 11.4% tax between 2011 and 2016.

President Trump himself has several times expressed frustration with the situation. The same goes for Bernie Sanders.

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Criticize tax reform

Among other things, the current giant Netflix and automaker Genereal Motors have also managed to find a loophole in the tax system, allowing them to collect effective tax rates below zero percent.

ITEP writes that for 40 years they have been investigating the tax practices of US companies and have been trying to fill the gaps for a long time.

When adopting tax reform in Congress in 2017, it had been argued that a corporate tax cut of 35 to 21% would encourage companies to better contribute to society, points out the think tank.

"The reform did not, however, widen the tax base or fill a number of loopholes allowing profitable businesses to systematically avoid taxes on nearly half of the profits." , writes the think tank.

"Despite the fact that the president himself has criticized Amazon for avoiding paying taxes in the past, the administration has so far shown no interest in their tax programs, which seems to have allowed companies to avoid even more taxes, "they continued.