Instead, the company lists taxes it collects on behalf of the U.S. Matthew Gardner, senior fellow for the Institute on Taxation and Economic Policy (ITEP), who analyzes corporations and their tax avoidance, says there’s “no meaningful” connection between Amazon and many of the taxes it listed in its announcement. Franklin) ‘Patting themselves on the back’
#Amazon band in a box zip
17, 2019, photo Steven Smith places packages onto a conveyor prior to Amazon robots transporting packages to chutes that are organized by zip code, at an Amazon warehouse facility in Goodyear, Ariz. taxes include over $1 billion in “federal income tax expense,” “more than $2.4 billion in other federal taxes, including payroll taxes and customs duties,” and “more than $1.6 billion in state and local taxes, including payroll taxes, property taxes, state income taxes, and gross receipts taxes.” The company also notes it collected and sent close to “$9 billion in sales and use taxes to states and localities throughout the U.S.” If Amazon paid the 21% as mandated by the TCJA, the $162 million the tech behemoth paid would skyrocket to $2.8 billion.Īccording to Amazon, its summary of U.S. The tax law was largely criticized as a tax break for the rich, but proponents argued it would broaden the corporate tax base by ending special interest breaks and closing loopholes. The TCJA lowered the corporate tax rate from 35% to 21%. And so while the company’s balance sheet reports just over $1 billion in federal income taxes, the number paid last year amounts to less than $200 million.Īmazon’s deferred tax amount has steadily increased throughout the years, rising from $565 million in 2018, the first year of President Trump’s new tax law, the Tax Cuts and Jobs Act, took effect. In Amazon’s 10-K filing for 2019 (a detailed financial report required by the Securities and Exchange Commission each year) the company reported paying $162 million in federal income taxes, with more than $914 million in federal income taxes deferred.ĭeferred taxes can be used by companies to reduce their taxable income, by “postponing” payment based on accounting practices. taxes are a reflection of our continued investments, compensation of our employees, and the current tax rules,” Amazon wrote in a blog post on Jan. “We follow all applicable federal and state tax laws, and our U.S.
Last year, Yahoo Finance reported that Amazon ( AMZN) paid a shockingly low amount in federal income taxes in 2018 on more than $11 billion in profits: $0.īut this year, while the company says it has paid “billions” in taxes for the year 2019, in reality it only paid $162 million in federal income tax - an effective tax rate of 1.2% on over $13 billion in profits.
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