Amazon Will Pay a Whopping $0 in Federal Taxes on $11.2 Billion Profits

[kentuck]

http://fortune.com/2019/02/14/amazon-doesnt-pay-federal-taxes-2019/?xid=gn_editorspicks&fbclid=IwAR1ayoGNXoecooqxpTJBUwB-OrD1vjK-PmU3uHwbJf1lW6CcAaIk9REGJe0

<snip>
Those wondering how many zeros Amazon, which is valued at nearly $800 billion, has to pay in federal taxes might be surprised to learn that its check to the IRS will read exactly $0.00.

According to a report published by the Institute on Taxation and Economic (ITEP) policy Wednesday, the e-tail/retail/tech/entertainment/everything giant won’t have to pay a cent in federal taxes for the second year in a row.

This tax-free break comes even though Amazon almost doubled its U.S. profits from $5.6 billion to $11.2 billion between 2017 and 2018.

To top it off, Amazon actually reported a $129 million 2018 federal income tax rebate—making its tax rate -1%.

...more at link

[BSdetect]

1. This illustrates the insanity of current tax laws.

Meanwhile stiffing the poor. The 90% of us that is.

[doompatrol39]

2. Waiting for the Amazon apologists to be along any minute now.

I use Amazon as much as the next guy so I'm not at all taking some sort of holier than thou stance. I just think this is a travesty and a large part of why we are in so much of the mess we are in economically. But based on the number of people shedding tears over their extortion of New York City (and Democratic politicians in general similar to the Schulz presidential run..."Keep your liberals in check...OR ELSE&quot it's not going to get better any time soon.

[wcast]

8. +1000

I posted yesterday it was a bribe and I got push back that it wasn't. Why doesn't Amazon come and pay the taxes they would owe. Pulling out is their warning to other communities.

[doompatrol39]

15. These things are usually bribes but this was worse....

This was "It's not enough for you to give us insane amounts of tax dollars. It's not enough that are not allowed to ask us to help the community or offer any concessions or help or anything in return other than "jobs". You have to make sure that you do not allow any dissent or criticism of our company. You have to make sure that you do not elect or promote to positions of authority any politician who dares question us at all."

[Blue_Tires]

3. Holy damn...

[Phentex]

4. Proving he's out-Trumping Trump...

isn't that part of the game? See who can get away without paying more taxes?

[CrispyQ]

5. This is why we can't have nice things.

Slavery is the fiction that people are property; corporate personhood is the fiction that corporations are people. ~Reclaim Democracy

[Tom Rinaldo]

6. "Amazon actually reported a $129 million 2018 federal income tax rebate--making its tax rate -1%. "

That pretty much summarizes the Republican economic plan for the rich: We pay them.

[FakeNoose]

7. I thought the issue has always been sales tax

Which state gets to tax a "sale" that happens on the internet? Right now no state gets any sales tax income because it's never been resolved. Some states have 7 or 8% sales tax, others have 3 or 4%, while some states have no sales tax.

Does the "sale" take place where the customer lives and takes delivery? Or does it take place where the selling company is doing business, such as Amazon in Washington State? If Washington State gets to reap billions in revenue (by collecting from Amazon) do they then have to transfer revenues to states where the customers live?

If I live in Pennsylvania and I purchase a new TV at a local retail store in PA, I pay 7% sales tax and the store has to collect it for the state. But if I purchase it online from Amazon, then I don't have to pay any sales tax to PA or to WA. And it gets even more complicated if Amazon "sells" me a TV but ships it from their vendor in another state, let's say Michigan. If the TV was manufactured in Michigan and shipped to me in Pennsylvania, why should Washington State get any revenue at all from that transaction?

Because we're all buying online now, and the sales tax issue has never been resolved by our do-nothing Congress, it has mushroomed to epic proportions. Amazon has benefited tremendously but so have many other online retailers, to the detriment of our local brick-and-mortar retailers.

[Mariana]

10. The OP is not about state or local sales taxes.

It is about a Federal tax. One has nothing to do with the other.

[JustABozoOnThisBus]

14. Interesting that you pay no sales tax on Amazon in PA.

If I (in MI) buy something from Amazon, they add 6% sales tax. Maybe they have a brick/mortar presence in MI. But I pay the same 6% no matter where the item is shipped from.

[FakeNoose]

18. I do get taxed on certain items from Amazon

For the life of me, I can't figure out what criteria they use to calculate the tax though.
FWIW I also buy from other online sellers besides Big-A and it seems nobody else knows either.

[mathematic]

17. Your post is like time travelling back to the bush admin

Sales taxes are collected for the state the buyer is in. Sales taxes have been collected in PA for nearly the entire decade. Heck, as of last year Amazon even collects sales taxes in PA on behalf of third party sellers (this is like the local mall collecting sales taxes for the stores in the mall). Congress does not regulate state sales taxes.

Seriously man, make an effort to be at least a little up to date.

[treestar]

9. How does that even work?

The article says that the rate is 21% and there are loopholes that let them avoid that.

[Initech]

12. The real moochers of your paycheck.

But let's blame it on illegal immigrants, because, reasons.

[blueinredohio]

13. How long can this country last

with businesses not paying taxes or the rich not paying taxes? The poor and middle class can't carry the country forever.

[doompatrol39]

16. We're sure going to find out, aren't we? (n/t)

[LAS14]

19. Can anyone explain this? I simple terms?

I read the Fortune article, but either it wasn't trying to explain or it assumed to much info on the part of the reader. How can this be?????????

[NCjack]

20. Amazon kills mom & pop retailers. nt