Stunning Report Details How Mighty Amazon Pays No Income Tax
Stunning Report Details How Mighty Amazon Pays No Income Tax by: Daniel Jennings for Off the Grid News
Remarkably, Amazon pays no income tax even though it reported $232.087 billion in revenues for 2018. Furthermore, Amazon had $41.25 billion in the bank at the end of last year.
However, Amazon will pay no federal income taxes for 2018, the Institute on Taxation and Economic Policy reports. Amazon will instead receive $129 million in federal tax credits, the Institute claims.
To summarize, Amazon pays no income tax but will get $129 million back from the IRS as a result of business operations last year. All in all, the Institute estimates Amazon’s 2018 taxable income at $5.6 billion.
Amazon Pays No Income Tax Despite Making A Lot Of Money
However, Stockrow reports that Amazon made a net income of $10.073 billion and had an operating income of $12.421 billion in 2018.
To elaborate, the net income figure is what Amazon had left over after paying all its expenses. In addition, the operating income amount consists of the money that Amazon makes off its operations.
Also, the aforementioned $232.087 billion in revenues represents all the money Amazon took in during 2018. Meanwhile, the $41.25 billion number above references the cash that Amazon had in the bank at the end of 2018.
Why Amazon Pays No Income Tax
Amazon pays no income tax because Uncle Sam only taxes certain kinds of corporate income. Consequently, the IRS does not tax most of the money that Amazon takes in.
Amazon, though, still pays many other taxes including sales taxes, property taxes, and state taxes. In other words, Amazon pays a lot of taxes but no federal income tax.
Nevertheless, little of Amazon’s taxes are going to the federal government as the budget deficit continually grows.
Amazon Pays No Income Tax While The Federal Deficit Grows
Ultimately, Amazon’s income tax situation will attract attention because we now have a record federal budget deficit.