Amazon has been drawing fire from politicians across the political spectrum for paying little to nothing in federal income taxes.
The company reported that it didn’t owe any federal taxes for the income it generated in 2017 or 2018.
Amazon doesn’t disclose the precise tax breaks it uses to reduce its tax burden.
But its annual report indicates it relied primarily on breaks related to stock-based compensation and research-and-development expenses and benefitted significantly from the 2017 tax cuts.
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Amazon has become a frequent punch bag for politicians from Donald Trump to Bernie Sanders for the amount of taxes it pays — or lack thereof.
The company didn’t pay any federal taxes on its income for either 2017 or 2018 — in fact, it recorded a net credit for each year — despite reporting a combined profit of more than $13 billion for those two years, according to its annual reports. Even in prior years, when it did owe Uncle Sam, its effective tax rate was significantly lower than that of comparable corporations and far less than the official corporate tax rate, according to research done by the Institute on Taxation and Economic Policy, or …read more
Source:: Businessinsider – Technology