How Does Amazon Pay Less Tax Than You?
Tax, a touchy subject for many given how much the government deduct from our salaries and accounts! As a federal law in almost every country across the world, why are there Tech giants making millions in profit but not paying a penny towards taxes like the rest of us?
With two consecutive years in a row now, tech giant Amazon made billions in profit but has not paid a single cent in taxes. In 2017 the company saw an astonishing profit of $5.6 billion without any tax to pay. In 2018, the company went on to report profits of $11.2 billion which is double what they made in the year prior and again they didn't pay a single dime in taxes. Not only did they not pay tax but they received a tax rebate of $129 Million which makes it a tax rate of -1%. Which sparks concern since the corporate tax in the US is 21%. There is little to no information as to how the company do their taxes besides a report of "unspecified tax credits" and "executive stock picks" which assists them in their rebate.
With the plans to open up a second headquarters in New York City with a taxpayer subsidy of $2 Billion this brought up concerns with Local politicians as to why the tech giant receives subsidies but not pay a single penny in taxes themselves. However, with the plans falling through there are locals who are disappointed as the new headquarters site would have gained 40,000 jobs in the area.
Corporate tax bonuses came after the Trump Administration introduced its tax cuts and jobs act which sharply cut federal corporate taxes and expanded others. One central idea of Trump's tax cuts was to cut corporate tax rates from 35% to 21% in an attempt to keep more money in the US but as the tax filings come in it is becoming increasingly clear that many companies are not even paying the lower rate.
I am a firm believer of putting things into perspective, let's just say you take out an Amazon Prime Membership for £6/7 per month, you are already paying more to them than what they pay in tax. I personally am an Amazon Prime member and I wouldn't change it for the world as it is a great service to be a part of, however, I do think the government need to do something about how these corporations manage to "dodge" tax legally. With so much poverty going on around the world you would think they would have thought of a way to "kill two birds with one stone" and actually force such companies to pay some sort of tax regardless of there contingencies.
Taking a look at the World's richest individuals in 2017 we had Microsoft's Bill Gates coming in at Number 1 followed by Warren Buffet at Number 2 and then Jeff Bezos is sitting at 3rd place. But Mr Bezos's Amazon hasn't paid Tax since 2017 and has since leapfrogged both Buffet and Gates and becoming the richest man in the world, one would wonder if he had paid his taxes, would he still be the world's richest man? Let me know your thoughts below....