Amazon had a record breaking year in 2018 by ranking in $11 billion in profits. But what’s interesting is that they paid no federal taxes for the second year in a row. Not only did they not pay any federal taxes, but they actually received a $129 million tax rebate. Factoring their rebate Amazon had an effective federal tax rate of -1 percent.
They were able to pull this off by way of a combination of corporate tax credits, loopholes, and employee stock compensation.
They also deferred $565 million in income from last year and carried it forward, one of the reasons for them doing that was the dropping of the corporate tax rate from 35 percent to 21 percent.
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