How Amazon avoids paying taxes
Amazon will not pay federal income tax for the second year in a row, according to the Institute on Taxation and Economic Policy, despite being worth $793 billion.
President Donald Trump has criticized the company for this, yet he reduced the corporate tax rate, making it even easier for large companies to pay less.
In September 2018, Amazon became the second US company to reach a value of $1 trillion.
Business Insider’s Steve Kovach last year broke down how Amazon legally gets away without paying federal tax.
Trump: Amazon is getting away with murder tax-wise.
Kovach: But believe it or not, in some cases, Trump is right. Amazon’s profits in 2017 were about $3 billion and it paid almost no federal taxes.
Bob Bryan: Amazon avoids paying federal taxes using a variety of tax credits and tax exemptions that are legal and built into the U.S. federal tax code. Some of these can include the research and development tax credit which allows them to deduct some of the costs of new investments and also a big one for this past year was the ability to deduct stock-based compensation of executives.
Business Insider
Amazon in Its Prime: Doubles Profits, Pays $0 in Federal Income Taxes – ITEP
https://itep.org/amazon-in-its-prime-doubles-profits-pays-0-in-federal-income-taxes/