Tax holiday for Amazon

Finance

Amazon, which earned profits of 14.834 billion in 2018, will not pay a penny of federal tax in the United States.

The boss of the company and the richest man in the world, Jeff Bezos, has lived a trying week, but he can at least rejoice in this news. 

Thursday, Amazon canceled the construction of new premises in New York: several elected denounced randomly the some $ 3 billion in tax benefits promised to the company, an accelerated accelerated gentrification of the Long Island City district retained by Amazon, or the saturation of the metro in the neighborhood concerned.

The online shopping giant is enjoying a tax holiday on US soil for the second year in a row, according to the Institute on Taxation and Economic Policy (ITEP) and as reported by The Guardian .

In 2018, Amazon nearly doubled its profits. Rather than pay the 21% tax required, the company took advantage of a $ 170 million tax rebate, a rate of -1%.

“This achievement is due to unspecified” tax credits “and share-related leave,” ITEP writes. 

Last week, Netflix reported record profits of $ 1.1 billion, but paid no taxes. 

These benefits come after the decision of US President Donald Trump to reduce the tax rate of some companies from 35 to 21%. 

“The financial statements are unveiled, and it is becoming increasingly clear that most companies do not even pay the reduced rate,” says ITEP. 

Amazon responded to The Guardian , saying “pay all taxes required in the United States as well as in the countries where they operate.” 

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