Fortune reports that although Amazon is valued at nearly $800 billion, it will pay nothing in federal taxes. The Institute on Taxation and Economic (ITEP) policy found that for the second year in a row, Amazon will not have to pay any federal taxes.
This tax-break comes despite the fact that Amazon nearly doubled its profits in the U.S. from $5.6 billion to $11.2 billion from 2017 to 2018.
More, Amazon reported a $129 million 2018 federal tax rebate. This makes its tax rate -1%.
Politicians, from Bernie Sanders to President Trump, have criticized Amazon’s non-existent tax rate. Sanders tweeted “You know what Amazon paid in federal income taxes last year? Zero.” Trump tweeted, “I have stated my concerns with Amazon long before the Election. Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!”
Although Trump criticized the company, ITEP found that the non-existent federal tax payment is a byproduct of the Trump Administration’s corporation-friendly tax cuts.
Between 2011 and 2016, Amazon paid an 11.4% federal income tax rate.