One of the largest Conglomerates in the world, Amazon paid almost no federal tax in America. Yes, it is hard for anyone to believe but it is true. More than $700 billion worth company literally paid almost nothing in the taxes for the year 2017 and 2018.
American president Donald Trump slammed the company for the same, but he further reduced the corporate tax rate, which made it easier for large companies to avoid paying much.
Talking about the same, Bob Bryan said, â€œAmazon 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.â€
Not only this, but Amazon also takes advantage of the Internet Tax Freedom Act, which states that online retailers won’t have to charge sales tax, which allows retailers like Amazon to trade tons of goods without paying any tax.
Amazon is also looking to build a new headquarter in the United States and several cities including New Jersey are offering several incentives to get them into their city. It is being reported that New Jersey is offering $7 billion in tax splits if the company builds its new headquarter in Newark, New Jersey. In between 2005 and 2014, Amazon has received $600 million in tax shares for building their warehouses and $147 million in tax breaks for building different data centers in the USA.