Amazon No Tax

About Amazon No Tax

Amazon famously paid no federal income tax for years despite generating billions in profit. In 2017 and 2018, Amazon reported over 11 billion in profit but paid 0 in federal income tax, and even received tax rebates. Amazon achieved this through stock based compensation deductions, accelerated depreciation, and the R&D tax credit. The Amazon case became a political flashpoint. Bernie Sanders and Alexandria Ocasio Cortez highlighted Amazons tax avoidance. Amazon argued it was following the law and that low prices benefited consumers. The TCJA of 2017 reduced the corporate rate but did not eliminate the loopholes Amazon used. Amazon began paying some federal income tax after 2019, following rule changes and public pressure. The Amazon case highlighted how large corporations can legally minimize or eliminate federal income tax.