Amazon Pays Zero Dollars In 2017 Taxes Because Everything About Late Stage Capitalism is Now a Creepy Joke

You know what I don’t even sort of get? Every single forward thinking person I know stopped shopping at Walmart like 15 years ago, but Amazon is unquestionably way worse than Walmart. Way worse, and yet every single seemingly smart person I know shops there incrementally more by the day. I currently have $80 in Amazon gift cards. Would anyone give me a Walmart gift card? God no. Oh, and please buy my books through Amazon because it’s the only way the site makes any money and if you’re an independent writer you basically have no choice but to do business with them. Sort of like Google and Spotify for musicians at this point. I uhhh, yeah, no taxes. Fuck these people. (from The New Republic):

“This year, like every other year, is shaping up to be a triumphant one for Amazon. It is on the cusp of becoming the first trillion dollar company ever. In the coming months it will announce the opening of a second headquarters—and likely bank billions in tax breaks and other incentives from the lucky city it chooses to grace with its presence. The company’s founder and CEO Jeff Bezos will continue to be the richest person in the history of the world. Amazon will continue to grow at a rapid clip, gobbling up e-commerce market share and posting staggering revenues. It will even post profits. And it will pay next to nothing, and possibly nothing at all, in federal taxes.

Earlier this week, Matthew Gardner of the Institute on Taxation and Economic Policy reported that Amazon, which recorded $5.6 billion in profits in 2017, paid zero in federal taxes, thanks to “various tax credits and tax breaks for executive stock options.” That’s remarkable in isolation, but especially remarkable when you consider that Donald Trump’s corporate tax bill hadn’t even gone into effect; Amazon projects it will get an additional $789 million in benefits from the passage of that bill. And it’s even more remarkable given that Amazon was already paying a much lower rate than other companies. The tax bill may have cut the corporate tax rate from 35 to 20 percent, but Amazon had paid only an 11 percent rate over the previous five years, meaning that “the company was able to shelter more than two-thirds of its profits from tax during that five-year period,” Gardner wrote.

Tax avoidance is not new to Amazon. “More so than any company I can think of,” Gardner told me,  “Amazon appears to have built their profit maximization strategy around avoiding taxes at various levels.” Amazon has used local, state, and federal tax laws to its benefit, while doing everything in its power to avoid posting profits. (The stock market rewards the company anyway, as it uses its low-profit strategy to decimate competitors and swallow up industries.) It’s reached the point where Amazon, over the past few years, has made an effort to pay some tax—largely, it seems, to avoid bad press.

The fact that it paid a zero percent rate in 2017 comes at an awkward time. As Amazon forces cities and states to offer it tax breaks for its new headquarters, combined with the hundreds of millions of dollars it will rake in next year from the tax bill, the company has become an outlier in the fierce competition to game the system, snatching the crown from Apple to become the country’s most prominent tax grifter.”

Read the rest over at The New Republic

Thad McKraken

Thad McKraken

CEO at DMI
Thad McKraken is a psychedelic writer, musician, visual artist, filmmaker, Occultist, and pug enthusiast based out of Seattle. He is the author of the books The Galactic Dialogue: Occult Initiations and Transmissions From Outside of Time, both of which can be picked up on Amazon super cheap.
Thad McKraken