- An analysis released on Monday shows that Amazon has cheerfully taken advantage of various legal mechanisms to aid them in avoiding $5.2 billion in federal corporate income taxes in 2021.
- After obliterating its old record with $36 billion in profits, Amazon used many “familiar” legal maneuvers to slash its federal taxes in 2021— all made possible by Trump’s “tax reform” law in 2017.
- This latest analysis got the attention of Warren Gunnels, the staff director for Senate Budget Committee Chairman Bernie Sanders. Sanders has been a tireless critic of Amazon’s tax-dodging, union-busting, and mistreatment of its workers.
- “Class warfare is Amazon making a record-breaking $36 billion profit last year, avoiding $5.2 billion in taxes, and paying an effective federal income tax rate of 6% while Jeff Bezos spends his fortune on union-busting, flying to outer space, and protecting his $500 million yacht,” Gunnels tweeted.
- Matthew Gardner, a senior fellow at the Institute on Taxation and Economic Policy, noted one of the causes of the wealth inequality crisis: “These are tax breaks that Congress has endorsed and even expanded.”
“An analysis released Monday shows that Amazon utilized several perfectly legal mechanisms to avoid paying $5.2 billion in federal corporate income taxes in 2021, a year in which the online retail behemoth saw its profits and sales skyrocket.
Matthew Gardner, a senior fellow at the Institute on Taxation and Economic Policy (ITEP), estimated that given Amazon’s record-breaking $35 billion in U.S. pretax income for fiscal year 2021, the Seattle-based corporate giant paid an “effective federal income tax rate of 6%”—far lower than the statutory corporate tax rate of 21%.
“These are tax breaks that Congress has endorsed and even expanded.”
Had Amazon paid the latter rate on its 2021 U.S. income, Gardner noted, the company’s federal tax bill would have amounted to more than $7.3 billion…”
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