Despite increasing profit of massive online retail company Amazon every year, it pays no federal income tax for the second consecutive year.
The Institue of taxation and economic policy says the company is liable to a 21 percent tax rate on its U.S income. Be that as it may, through different tax cuts and credits, the organization will get a duty refund of $129 million.
In the year 2017, the digital retailing behemoth has managed to avoid paying federal taxes. The company paid no federal taxes despite having an income of $5.6 billion. Last year also it paid no taxes on its profit of $11.2 billion.
How Amazon manages to Avoid federal income tax
The U.S charge code allows an organization that faces tremendous loss in business to reduce its future taxable income. It has worked in Amazon favor as its past has been set apart with billions of dollars in misfortunes and a portion of its benefits originate from worldwide sources not expose to the U.S. charge code, the system clarifies.
Amazon is no stranger to tax controversies. Last year the company, in a stunning demonstration of hubris, occupied with a year-long forceful push for gigantic new migration endowments for its “HQ2” home office. After a year Amazon seems to have won its battle against reasonable duties by maintaining a strategic distance from government imposes and acquiring a rewarding bundle of neighborhood tax cuts for two of its new HQ2 areas.
US President Donald Trump has also criticized the giant retail company Amazon for its tax practices in the past. Trump tweeted in 2018 that, “I have stated my concerns with Amazon long before the Election. Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!”