Bernie Sanders @SenSanders Amazon paid $0 in taxes on $11 billion in annual profits.

[BeckyDem]

Last edited Sat Mar 14, 2020, 08:27 PM - Edit history (1)

Link to tweet

Why Amazon paid no 2018 US federal income tax
Published Thu, Apr 4 20196:10 AM EDT
Andrew Davis



How Amazon paid $0 federal income tax in 2018

In 2018, Amazon paid $0 in U.S. federal income tax on more than $11 billion in profits before taxes. It also received a $129 million tax rebate from the federal government.

Amazon’s low tax bill mainly stemmed from the Republican tax cuts of 2017, carryforward losses from years when the company was not profitable, tax credits for massive investments in R&D and stock-based employee compensation.

Jeff Bezos’ company is not the only corporation getting money back from the federal government. For example, General Motors also reported a net federal income tax benefit in 2018. This also isn’t exactly a brand-new trend. Companies as diverse as Southwest Airlines and Goldman Sachs have also reported similar benefits in certain years since 2008.

In a statement to CNBC, an Amazon spokesperson said, “Amazon pays all the taxes we are required to pay in the U.S. and every country where we operate, including paying $2.6 billion in corporate tax and reporting $3.4 billion in tax expense over the last three years.” The statement also mentioned Amazon’s investment and job creation in the United States.

This issue came front and center on a local and state level in New York during the saga of Amazon’s HQ2 hunt – with a groundswell of local opposition scuttling the deal.

All this begs the question: Does America have a corporate income tax problem?

https://www.cnbc.com/2019/04/03/why-amazon-paid-no-federal-income-tax.html

[TwilightZone]

1. They paid $132 million in 2019.

A whopping 1.2%.

And another $914 million deferred to a later date.

https://www.cnbc.com/2020/02/04/amazon-had-to-pay-federal-income-taxes-for-the-first-time-since-2016.html

Sanders is probably referring to 2018.

[BeckyDem]

3. Poor dears.

Of course, $162 million is still just a fraction of the $13.9 billion in pre-tax income Amazon reported for 2019 — roughly 1.2%, in fact.

[TwilightZone]

6. It's more than zero.

Sanders should update his numbers.

"roughly 1.2%"

Yes, that was noted in my post.

[George II]

5. He just says "taxes", not what kind of taxes. They pay LOTS of taxes of all kinds.

[George II]

2. That's false, too. Amazon pays LOTS of taxes. He's talking about only one kind of tax, but....

....he never says which kind of tax.

[TwilightZone]

4. Right, it's federal income only, and it's outdated.

https://www.cnbc.com/2020/02/04/amazon-had-to-pay-federal-income-taxes-for-the-first-time-since-2016.html

[Mr.Bill]

7. Donating PTO to co-workers

is very common in the hospital industry. Not just for when people are sick, but other times they need to be off work for awhile also.

[BeckyDem]

8. lol

[Mr.Bill]

10. Why do you find that funny?

[BeckyDem]

18. Far from sufficient and carries the continuing threat workers face when they are

dependent on the charity of others. Bezos and the Whole Foods CEO should be condemned for even suggesting it.

[Mr.Bill]

20. I didn't say it was going to be "sufficient".

I just think it's a nice thing to do for a friend. There is nothing wrong with that and to say someone should be condemned for suggesting it is mean spirited. There is nothing wrong with charity. The government is not going to do everything for you.

[BeckyDem]

21. The goverment is not going to do everything for you. Nice.

Not unless it is demanded from them, and there is everything wrong with making excuses for it. They will continue to increase the profits of people like Bezos, without workers rights, that is the government doing everything against you.

[Mr.Bill]

22. Yeah, I thought that would trigger you.

This is why your candidate is losing big time.

[BeckyDem]

23. Union strong forever.

Have a great day.

[George II]

13. What's funny about that? I worked for a couple of companies that allowed that. In fact...

...the last company I worked for before I retired allowed employees to trade sick time for vacation time - two days for one vacation day.

When talking about "paid leave" Senator Sanders isn't one to speak - he's worked in his job as Senator only five days since last JUNE (that's almost nine months) while collecting his full pay and benefits.

[TexasTowelie]

9. We had that option when I worked with a state agency.

I had a lot of sick leave built up when I was younger so I was glad to donate PTO when one of my colleagues developed kidney problems.

[LongtimeAZDem]

11. Bernie Sanders used Amazon to become a millionaire buying his own books with campaign funds

[BeckyDem]

12. lol

[George II]

14. Check his FEC filings. Back before becoming a candidate again he was doing paid....

....speaking engagements. By law he couldn't get any of the ticket revenues, but the promoter offered a free Sanders book to everyone who bought a ticket.

He also ran a promotion himself several months ago offering a free book for a donation to his campaign.

Who paid for those books? Who received royalties on those book sales?

No, this is NOT "lol"-worthy.

As for the initial premise to which you responded, Sanders sells all his books on Amazon, as well as his campaign selling dozens of other campaign trinkets - hats, tshirts, mugs, stickers, magnets, lawn signs, bobble-head dolls, even chia pets!

Amazon is bad, except when it isn't.

[LongtimeAZDem]

15. I think you meant, "la, la, la"

[dware]

17. Maybe you ought to do some research before lol'ing anyone.

[hughee99]

16. Out of curiosity, they are suggesting that Amazon is now getting out of taxes because of the 2017

republican bill, but what were their taxes BEFORE that bill? According to this, it looks like they weren't paying much before, either.

https://www.washingtonpost.com/us-policy/2019/02/16/amazon-paid-no-federal-taxes-billion-profits-last-year/

[BeckyDem]

19. Correct and thanks for adding your info.

Studies show that many corporations rarely paid the 35 percent rate under the old tax code. Over the years, companies found many ways to cut their tax bills, from sheltering foreign earnings in low-tax countries and banking credits for money spent on research and development to deducting the expense of stock options for executives.

https://publicintegrity.org/inequality-poverty-opportunity/taxes/trumps-tax-cuts/you-paid-taxes-these-corporations-didnt/

[NCProgressive]

24. I don't mind them paying $0 in taxes

In the development stage, Amazon had amassed billions in losses which can be legally carried forward 15 years as "Net Operating Loss" carryovers or NOL.

They are entitled to the deduction which wiped out their current year income.

Next year, they won't have that deduction and they will pay like every other corporation.

This is much ado about nothing -- only to enrage revolutionaries.

[BeckyDem]

25. They are counting on people like you.

[NCProgressive]

27. It has nothing to do with political philosophy

If a poor person opened a hot dog stand and lost $500 in first year and made $500 the next year, the losses are still allowed to be deducted and that person will pay $0 in taxes as well.

I don't see how that is any different. I don't hate the rich who abide by the law.

[BeckyDem]

28. It has to do with equity and who writes the laws.

[NCProgressive]

29. So you want to discriminate against people who have more money

to disallow deductions which are allowed for the rest?

It will be challenged in courts and you'll lose.

[BeckyDem]

30. lol

[TexasBushwhacker]

31. Trump's tax cut also got rid of the Alternative Minimum Tax

for C corps.

I don't have a problem with tax credits in all cases, but I do have a problem with refundable tax credits for corporations that pay no federal income tax.

These big corporations are protected by our military, use our infrastructure and in some cases their low and/or part time wages are subsidized by the taxPAYERS in the form of SNAP, Medicaid and subsidized housing. If you have billions in profits, pay some income taxes dammit.

[beachbumbob]

26. how many bills did sanders write to change the taxcode or is it just election time blah blah blah???

in the House or the Senate?


EVER???