Biden Tax Plan Could Cost Amazon Billions
Few megacap companies have been as successful as Amazon (NASDAQ: AMZN) at dodging the tax collector. Throughout its history, the tech titan has employed a number of tactics to reduce its tax bill in the U.S.
For years, the company resisted collecting sales taxes, exploiting a loophole in the tax code to give it an advantage over brick-and-mortar retailers, before changing its tune once that law was no longer in its interest. Even today, it doesn't always collect sales taxes, and many of its third-party retailers also don't. By operating close to breakeven for much of its history, Amazon also brought its tax bill to near zero, and its very public search for a second headquarters, dubbed a "beauty contest" by detractors, was an often shameless display of tax-break solicitation.
In two of the last three years, Amazon hasn't paid any federal income tax; in fact, it received a benefit of $137 million in 2017 and $129 million in 2018. Last year, it set aside $162 million for U.S income taxes, despite generating $13.3 billion in domestic pre-tax income.
Source Fool.com
