How Amazon Paid $0 Federal Income Tax in 2018

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How Amazon Paid $0 Federal Income Tax in 2018 4.5

Amazon paid $0 in federal income taxes in 2018. On top of that, the company also received a multi-million dollar tax rebate from the federal government. How does the company do it? President Trump's tax cuts, aggressive revenue reinvestment, years of R&D, and employee stock compensation all helped. Does America have a corporate income tax problem?

Amazon is one of the world's most valuable companies, valued at nearly $800 billion, and the e-commerce giant pulled in $232.9 billion in global revenue in 2018.

And yet, Amazon's federal tax bill this year: $0. For the second year in a row.

In fact, Amazon is actually getting a federal tax refund of $129 million this year, due in part to a combination of tax credits and deductions. This is despite the fact that Amazon nearly doubled its taxable income in 2018 to $11.2 billion, from $5.6 billion a year earlier.

In other words, Amazon is basically paying a -1 percent federal income tax rate this year after reportedly paying a federal rate of more than 11 percent between 2011 and 2016, according to The Week.

Sen. Bernie Sanders, I-Vt., who has criticized Amazon in the past for not paying higher federal taxes, took to Twitter to point out that any Amazon Prime member paid more for that program's annual fee ($119) than the company paid in federal taxes. Prime has 100 million subscribers.

"Amazon pays all the taxes we are required to pay in the U.S. and every country where we operate, including paying $2.6 billion in corporate tax and reporting $3.4 billion in tax expense over the last three years," an Amazon spokesperson said in a statement provided to CNBC Make It.

Amazon reported its sizable federal refund in a recent corporate filing for the company's fourth-quarter earnings report. However, Amazon also notes in that filing that it will pay $756 million in total taxes this year, between state and international taxes.

A report this week from the Institute on Taxation and Economic Policy, or ITEP, a nonpartisan and nonprofit tax policy think tank, pointed out the fact that Amazon will not pay federal taxes for the second year in a row. In fact, last year, Amazon received an even larger refund, getting $137 million from the federal government.

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How Amazon Paid $0 Federal Income Tax in 2018

💬 Comments on the video

What do you think of the corporate tax rate in America? Should it be higher? Lower?

Author — CNBC


But the IRS comes after me for an extra hundred bucks I can't prove I paid for a school textbook.

Author — dosmastrify


Her: so how much do you make?

Me: let's just say I pay more taxes than a large company like Amazon

Author — JP


Lobbying is called bribes in third world countries. Its just a fancy name here.

Author — Emran Hossain


Its a scam for the poor. A blessing for the rich.

Author — dmax junky


I’m paying a higher tax % then amazon..

Author — suchasreallife


Poor people : That’s not fair
*Gets rich*
ex poor person : it’s fine

Author — Aye dawg 1


They lowered corporate tax from 35% to 21% and increased federal employees tax, now families make less due to federal tax increase and corporate make more due to corporate tax dectease. Thanks Trump

Author — RedNitro Hacks


It seems that Andrew Yang is the only politician speaking about this.

Author — Edgar Quezada


Sounds like they have a great accounting and tax attorney division.

Author — njineermike


They "invest" in politicians. That's the short answer.

Author — Joakim Nylund



Author — Justin Marvel


From all that money he is making from not paying taxes, he should be paying his employees more 😤

Author — Sherilyn Li


I did not bribe my teacher. I lobbyed him.

Author — Frank Ragetti


This election I would suggest dems and republicans come together with slogan MAKE AMAZON PAY FOR IT

Author — David Neely


Welcome to the United States of corporations.

Author — Nathaniel Singleton


So your telling me Middle class people have to pay more tax then rich people? what lol

Author — Roblox


When the rich are elected to lead America, they will take care of their own first.

Author — Mag


Amazon: Pays no taxes
Me: I pay taxes on my every single Amazon purchase.

Author — Omega Alpha


Most of the federal budget is waste, fraud, and abuse. Stop spending so damn much to buy votes. Problem solved.

Author — RB