How Much Will Amazon Pay in Taxes on $11.2 Billion in Profit?

How Much Will Amazon Pay in Taxes on $11.2 Billion in Profit?

You might think a company that makes more than $11 billion in profit would have a huge tax bill. After all, that makes complete sense. However, in the case of Amazon, the online retail giant, their tax bill is quite small. In fact, according to recent reports, the company will be paying a whopping $0 in taxes on their 2018 profit of $11.2 billion. 

How is that possible? It’s difficult to know exactly all the measures Amazon takes to avoid paying any tax on $11.2 billion. However, it all starts with the Tax Cut and Jobs Act. Thanks to the TCJA, the company’s tax liability dropped from 35 percent to 21 percent last year. 

The company also uses every available tax break to further reduce its tax bill, including exemptions, credits and tax loopholes. This isn’t the first time the company has paid zero tax. They did the same in 2017, on $5.6 billion in profit. 

However, the company claims that it pays all the taxes it’s required to pay in the U.S. and every other country in the world in which they operate. The news comes despite President Trump’s promises to make companies like Amazon pay their fair share of taxes. However, it remains clear that the many open loopholes still allow massive corporations to avoid paying tax. 

 

We hope you found this article about “How Much Will Amazon Pay in Taxes on $11.2 Billion in Profit?” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

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Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

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The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

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MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

 

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