Amazon's Corporate Tax Avoidance

Recent Developments

In a recent revelation, it has come to light that Amazon has managed to avoid paying substantial amounts of federal corporate income tax in recent years. Despite posting billions in profits, the e-commerce giant has utilized loopholes and tax breaks to minimize its tax liability.

Four-Year Tax Savings

Over the past four years, Amazon has collectively paid only $4 billion in federal corporate income tax. This amount is a mere fraction of its total profits during that period, effectively reducing its effective tax rate to an average of less than 1%.

2021 Tax Savings

In 2021 alone, Amazon avoided an estimated $52 billion in corporate federal income taxes. This significant tax savings allowed the company to boost its profits and shareholder dividends while contributing less to the public treasury.

Previous Tax Avoidance

The company's recent tax avoidance practices have drawn scrutiny, as Amazon had previously reported zero US Federal income tax liability in both 2017 and 2018. This has raised concerns about the fairness of the tax system and the ability of large corporations to avoid paying their fair share of taxes.