The e-commerce giant Amazon which has almost doubled the profits over the past few years has almost doubled its profits from $5.6 billion in 2017 to $11.2 billion in 2018. Despite making huge profits, Amazon isn’t expected to pay even a cent in federal taxes this year.
After examining Amazon’s corporate filings, the Institute on Taxation and Economic policy released its findings. Amazon reported a $129 million federal income tax rebate for 2018, equaling a tax rate of negative 1 percent. (The federal corporate income tax rate is 21 percent.)
“The fine print of Amazon’s income tax disclosure shows that this achievement is partly due to various unspecified ‘tax credits’ as well as a tax break for executive stock options,” the report stated.
This would be the second year in a row that Amazon has avoided paying federal taxes, despite being valued at a whopping $1 trillion.