Did Amazon pay $0 in taxes last year?












2















Background



I saw this article saying that Amazon paid $0 in corporate income tax last year. Is this true or just phrased to sound like they are getting away with paying nothing?



Here's the article: https://www.vox.com/2019/2/20/18231742/amazon-federal-taxes-zero-corporate-income



Claims from article



Chart:Tax ChartConfused on why they say "Federal Tax" in the graph, but corporate income tax throughout the article



Quote:




Yet during this surge into profitability — the company’s earnings doubled between 2017 and 2018 — Amazon’s tax bill has actually gone down. The company paid $0 in corporate income tax last year, according to an analysis from the Institute on Taxation and Economic Policy, an astonishing figure that generated dozens of news stories last week.











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Noah Cristino is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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  • Is the graph saying that the company paid negative tax in 2017 and 2018?

    – Andrew Grimm
    2 hours ago











  • @AndrewGrimm yeah I saw in another article "To top it off, Amazon actually reported a $129 million 2018 federal income tax rebate—making its tax rate -1%."(fortune.com/2019/02/14/amazon-doesnt-pay-federal-taxes-2019)

    – Noah Cristino
    2 hours ago
















2















Background



I saw this article saying that Amazon paid $0 in corporate income tax last year. Is this true or just phrased to sound like they are getting away with paying nothing?



Here's the article: https://www.vox.com/2019/2/20/18231742/amazon-federal-taxes-zero-corporate-income



Claims from article



Chart:Tax ChartConfused on why they say "Federal Tax" in the graph, but corporate income tax throughout the article



Quote:




Yet during this surge into profitability — the company’s earnings doubled between 2017 and 2018 — Amazon’s tax bill has actually gone down. The company paid $0 in corporate income tax last year, according to an analysis from the Institute on Taxation and Economic Policy, an astonishing figure that generated dozens of news stories last week.











share|improve this question







New contributor




Noah Cristino is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.





















  • Is the graph saying that the company paid negative tax in 2017 and 2018?

    – Andrew Grimm
    2 hours ago











  • @AndrewGrimm yeah I saw in another article "To top it off, Amazon actually reported a $129 million 2018 federal income tax rebate—making its tax rate -1%."(fortune.com/2019/02/14/amazon-doesnt-pay-federal-taxes-2019)

    – Noah Cristino
    2 hours ago














2












2








2








Background



I saw this article saying that Amazon paid $0 in corporate income tax last year. Is this true or just phrased to sound like they are getting away with paying nothing?



Here's the article: https://www.vox.com/2019/2/20/18231742/amazon-federal-taxes-zero-corporate-income



Claims from article



Chart:Tax ChartConfused on why they say "Federal Tax" in the graph, but corporate income tax throughout the article



Quote:




Yet during this surge into profitability — the company’s earnings doubled between 2017 and 2018 — Amazon’s tax bill has actually gone down. The company paid $0 in corporate income tax last year, according to an analysis from the Institute on Taxation and Economic Policy, an astonishing figure that generated dozens of news stories last week.











share|improve this question







New contributor




Noah Cristino is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.












Background



I saw this article saying that Amazon paid $0 in corporate income tax last year. Is this true or just phrased to sound like they are getting away with paying nothing?



Here's the article: https://www.vox.com/2019/2/20/18231742/amazon-federal-taxes-zero-corporate-income



Claims from article



Chart:Tax ChartConfused on why they say "Federal Tax" in the graph, but corporate income tax throughout the article



Quote:




Yet during this surge into profitability — the company’s earnings doubled between 2017 and 2018 — Amazon’s tax bill has actually gone down. The company paid $0 in corporate income tax last year, according to an analysis from the Institute on Taxation and Economic Policy, an astonishing figure that generated dozens of news stories last week.








united-states economics law taxes business






share|improve this question







New contributor




Noah Cristino is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.











share|improve this question







New contributor




Noah Cristino is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.









share|improve this question




share|improve this question






New contributor




Noah Cristino is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.









asked 4 hours ago









Noah CristinoNoah Cristino

1112




1112




New contributor




Noah Cristino is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.





New contributor





Noah Cristino is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.






Noah Cristino is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.













  • Is the graph saying that the company paid negative tax in 2017 and 2018?

    – Andrew Grimm
    2 hours ago











  • @AndrewGrimm yeah I saw in another article "To top it off, Amazon actually reported a $129 million 2018 federal income tax rebate—making its tax rate -1%."(fortune.com/2019/02/14/amazon-doesnt-pay-federal-taxes-2019)

    – Noah Cristino
    2 hours ago



















  • Is the graph saying that the company paid negative tax in 2017 and 2018?

    – Andrew Grimm
    2 hours ago











  • @AndrewGrimm yeah I saw in another article "To top it off, Amazon actually reported a $129 million 2018 federal income tax rebate—making its tax rate -1%."(fortune.com/2019/02/14/amazon-doesnt-pay-federal-taxes-2019)

    – Noah Cristino
    2 hours ago

















Is the graph saying that the company paid negative tax in 2017 and 2018?

– Andrew Grimm
2 hours ago





Is the graph saying that the company paid negative tax in 2017 and 2018?

– Andrew Grimm
2 hours ago













@AndrewGrimm yeah I saw in another article "To top it off, Amazon actually reported a $129 million 2018 federal income tax rebate—making its tax rate -1%."(fortune.com/2019/02/14/amazon-doesnt-pay-federal-taxes-2019)

– Noah Cristino
2 hours ago





@AndrewGrimm yeah I saw in another article "To top it off, Amazon actually reported a $129 million 2018 federal income tax rebate—making its tax rate -1%."(fortune.com/2019/02/14/amazon-doesnt-pay-federal-taxes-2019)

– Noah Cristino
2 hours ago










1 Answer
1






active

oldest

votes


















3














When Bernie Sanders claimed Amazon didn't pay federal income taxes in 2017, Snopes wrote a helpful article:




In regards to U.S. federal income taxes, the claim that Amazon paid none in 2017 is almost certainly factual. While Amazon’s tax filings are not public, their SEC filing for the year 2017 illustrates that the company used the tax code expertly (and legally) to their advantage, so well that the company anticipated a $137 million tax refund from the federal government (numbers are in millions of dollars):





Amazon did pay taxes to individual U.S. states ($211 million) and to international jurisdictions ($724 million), but their federal income tax burden was (less than) zero. The filings indicate that two factors provided the lion share of Amazon’s reduced federal tax liability: $220 million worth of tax credits, and $917 million in tax-deductible executive pay derived from the sale of stocks




(Politifact also wrote about this, coming to the same conclusion: it's likely true.)



The form they're referring to is the 10-K. Looking at the 2018 filing, it has the same sections, so the same explanation applies. Under "Current Taxes: U.S. Federal" for 2018 it says "$(129)" (parenthesis indicate a negative number and this number is still in millions). In other words, much like last year, they expected to get a tax refund, which is why the line in the graph is negative for those years.



Again, this is referring to federal income taxes. There's no evidence that they didn't pay other types of taxes; as you can see in the charts, the columns for "U.S. State" and "International" taxes all show positive numbers.






share|improve this answer


























  • Great answer. However, since "There's no evidence that they didn't pay other types of taxes" and that common people seemingly don't segment taxes like business do in their minds, a brief list of any of the taxes Amazon did or might have pay to the federal government might be in order. Their undoubted contribution to social security is certainly one I can think of.

    – fredsbend
    43 mins ago













  • It's acceptable for me to focus on "federal", but the Q goes for a more general "taxes". Don't want to echo the previous comment, but at least cite how you arrive at "no evidence" for 'other taxes'?

    – LangLangC
    20 mins ago



















1 Answer
1






active

oldest

votes








1 Answer
1






active

oldest

votes









active

oldest

votes






active

oldest

votes









3














When Bernie Sanders claimed Amazon didn't pay federal income taxes in 2017, Snopes wrote a helpful article:




In regards to U.S. federal income taxes, the claim that Amazon paid none in 2017 is almost certainly factual. While Amazon’s tax filings are not public, their SEC filing for the year 2017 illustrates that the company used the tax code expertly (and legally) to their advantage, so well that the company anticipated a $137 million tax refund from the federal government (numbers are in millions of dollars):





Amazon did pay taxes to individual U.S. states ($211 million) and to international jurisdictions ($724 million), but their federal income tax burden was (less than) zero. The filings indicate that two factors provided the lion share of Amazon’s reduced federal tax liability: $220 million worth of tax credits, and $917 million in tax-deductible executive pay derived from the sale of stocks




(Politifact also wrote about this, coming to the same conclusion: it's likely true.)



The form they're referring to is the 10-K. Looking at the 2018 filing, it has the same sections, so the same explanation applies. Under "Current Taxes: U.S. Federal" for 2018 it says "$(129)" (parenthesis indicate a negative number and this number is still in millions). In other words, much like last year, they expected to get a tax refund, which is why the line in the graph is negative for those years.



Again, this is referring to federal income taxes. There's no evidence that they didn't pay other types of taxes; as you can see in the charts, the columns for "U.S. State" and "International" taxes all show positive numbers.






share|improve this answer


























  • Great answer. However, since "There's no evidence that they didn't pay other types of taxes" and that common people seemingly don't segment taxes like business do in their minds, a brief list of any of the taxes Amazon did or might have pay to the federal government might be in order. Their undoubted contribution to social security is certainly one I can think of.

    – fredsbend
    43 mins ago













  • It's acceptable for me to focus on "federal", but the Q goes for a more general "taxes". Don't want to echo the previous comment, but at least cite how you arrive at "no evidence" for 'other taxes'?

    – LangLangC
    20 mins ago
















3














When Bernie Sanders claimed Amazon didn't pay federal income taxes in 2017, Snopes wrote a helpful article:




In regards to U.S. federal income taxes, the claim that Amazon paid none in 2017 is almost certainly factual. While Amazon’s tax filings are not public, their SEC filing for the year 2017 illustrates that the company used the tax code expertly (and legally) to their advantage, so well that the company anticipated a $137 million tax refund from the federal government (numbers are in millions of dollars):





Amazon did pay taxes to individual U.S. states ($211 million) and to international jurisdictions ($724 million), but their federal income tax burden was (less than) zero. The filings indicate that two factors provided the lion share of Amazon’s reduced federal tax liability: $220 million worth of tax credits, and $917 million in tax-deductible executive pay derived from the sale of stocks




(Politifact also wrote about this, coming to the same conclusion: it's likely true.)



The form they're referring to is the 10-K. Looking at the 2018 filing, it has the same sections, so the same explanation applies. Under "Current Taxes: U.S. Federal" for 2018 it says "$(129)" (parenthesis indicate a negative number and this number is still in millions). In other words, much like last year, they expected to get a tax refund, which is why the line in the graph is negative for those years.



Again, this is referring to federal income taxes. There's no evidence that they didn't pay other types of taxes; as you can see in the charts, the columns for "U.S. State" and "International" taxes all show positive numbers.






share|improve this answer


























  • Great answer. However, since "There's no evidence that they didn't pay other types of taxes" and that common people seemingly don't segment taxes like business do in their minds, a brief list of any of the taxes Amazon did or might have pay to the federal government might be in order. Their undoubted contribution to social security is certainly one I can think of.

    – fredsbend
    43 mins ago













  • It's acceptable for me to focus on "federal", but the Q goes for a more general "taxes". Don't want to echo the previous comment, but at least cite how you arrive at "no evidence" for 'other taxes'?

    – LangLangC
    20 mins ago














3












3








3







When Bernie Sanders claimed Amazon didn't pay federal income taxes in 2017, Snopes wrote a helpful article:




In regards to U.S. federal income taxes, the claim that Amazon paid none in 2017 is almost certainly factual. While Amazon’s tax filings are not public, their SEC filing for the year 2017 illustrates that the company used the tax code expertly (and legally) to their advantage, so well that the company anticipated a $137 million tax refund from the federal government (numbers are in millions of dollars):





Amazon did pay taxes to individual U.S. states ($211 million) and to international jurisdictions ($724 million), but their federal income tax burden was (less than) zero. The filings indicate that two factors provided the lion share of Amazon’s reduced federal tax liability: $220 million worth of tax credits, and $917 million in tax-deductible executive pay derived from the sale of stocks




(Politifact also wrote about this, coming to the same conclusion: it's likely true.)



The form they're referring to is the 10-K. Looking at the 2018 filing, it has the same sections, so the same explanation applies. Under "Current Taxes: U.S. Federal" for 2018 it says "$(129)" (parenthesis indicate a negative number and this number is still in millions). In other words, much like last year, they expected to get a tax refund, which is why the line in the graph is negative for those years.



Again, this is referring to federal income taxes. There's no evidence that they didn't pay other types of taxes; as you can see in the charts, the columns for "U.S. State" and "International" taxes all show positive numbers.






share|improve this answer















When Bernie Sanders claimed Amazon didn't pay federal income taxes in 2017, Snopes wrote a helpful article:




In regards to U.S. federal income taxes, the claim that Amazon paid none in 2017 is almost certainly factual. While Amazon’s tax filings are not public, their SEC filing for the year 2017 illustrates that the company used the tax code expertly (and legally) to their advantage, so well that the company anticipated a $137 million tax refund from the federal government (numbers are in millions of dollars):





Amazon did pay taxes to individual U.S. states ($211 million) and to international jurisdictions ($724 million), but their federal income tax burden was (less than) zero. The filings indicate that two factors provided the lion share of Amazon’s reduced federal tax liability: $220 million worth of tax credits, and $917 million in tax-deductible executive pay derived from the sale of stocks




(Politifact also wrote about this, coming to the same conclusion: it's likely true.)



The form they're referring to is the 10-K. Looking at the 2018 filing, it has the same sections, so the same explanation applies. Under "Current Taxes: U.S. Federal" for 2018 it says "$(129)" (parenthesis indicate a negative number and this number is still in millions). In other words, much like last year, they expected to get a tax refund, which is why the line in the graph is negative for those years.



Again, this is referring to federal income taxes. There's no evidence that they didn't pay other types of taxes; as you can see in the charts, the columns for "U.S. State" and "International" taxes all show positive numbers.







share|improve this answer














share|improve this answer



share|improve this answer








edited 18 mins ago

























answered 1 hour ago









LaurelLaurel

11.3k54958




11.3k54958













  • Great answer. However, since "There's no evidence that they didn't pay other types of taxes" and that common people seemingly don't segment taxes like business do in their minds, a brief list of any of the taxes Amazon did or might have pay to the federal government might be in order. Their undoubted contribution to social security is certainly one I can think of.

    – fredsbend
    43 mins ago













  • It's acceptable for me to focus on "federal", but the Q goes for a more general "taxes". Don't want to echo the previous comment, but at least cite how you arrive at "no evidence" for 'other taxes'?

    – LangLangC
    20 mins ago



















  • Great answer. However, since "There's no evidence that they didn't pay other types of taxes" and that common people seemingly don't segment taxes like business do in their minds, a brief list of any of the taxes Amazon did or might have pay to the federal government might be in order. Their undoubted contribution to social security is certainly one I can think of.

    – fredsbend
    43 mins ago













  • It's acceptable for me to focus on "federal", but the Q goes for a more general "taxes". Don't want to echo the previous comment, but at least cite how you arrive at "no evidence" for 'other taxes'?

    – LangLangC
    20 mins ago

















Great answer. However, since "There's no evidence that they didn't pay other types of taxes" and that common people seemingly don't segment taxes like business do in their minds, a brief list of any of the taxes Amazon did or might have pay to the federal government might be in order. Their undoubted contribution to social security is certainly one I can think of.

– fredsbend
43 mins ago







Great answer. However, since "There's no evidence that they didn't pay other types of taxes" and that common people seemingly don't segment taxes like business do in their minds, a brief list of any of the taxes Amazon did or might have pay to the federal government might be in order. Their undoubted contribution to social security is certainly one I can think of.

– fredsbend
43 mins ago















It's acceptable for me to focus on "federal", but the Q goes for a more general "taxes". Don't want to echo the previous comment, but at least cite how you arrive at "no evidence" for 'other taxes'?

– LangLangC
20 mins ago





It's acceptable for me to focus on "federal", but the Q goes for a more general "taxes". Don't want to echo the previous comment, but at least cite how you arrive at "no evidence" for 'other taxes'?

– LangLangC
20 mins ago



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