Those wondering how many zeros Amazon, which is valued at nearly $800 billion, has to pay in federal taxes might be surprised to learn that its check to the IRS will read exactly $0.00.
According to a report published by the Institute on Taxation and Economic (ITEP) policy Wednesday, the e-tail/retail/tech/entertainment/everything giant won’t have to pay a cent in federal taxes for the second year in a row.
This tax-free break comes even though Amazon almost doubled its U.S. profits from $5.6 billion to $11.2 billion between 2017 and 2018.
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Do you know how they avoid such taxes? Usually corporations can just reabsorb profits so that they are no longer profits. But if they pay share holder dividends, then know they then do have to pay corporate taxes.
How much it is valued at is irrelevant to its tax liability.
It comes down to how you are counting profits.
SJG