Translating…
Amazon paid $0 in federal income taxes in 2018. On top of that, the company also received a multi-million dollar tax rebate from the federal government. How does the company do it? President Trump’s tax cuts, aggressive revenue reinvestment, years of R&D, and employee stock compensation all helped. Does America have a corporate income tax problem? Amazon is one of the world’s most valuable companies, valued at nearly $800 billion, and the e-commerce giant pulled in $232.9 billion in global revenue in 2018. And yet, Amazon’s federal tax bill this year: $0. For the second year in a row. In fact, Amazon is actually getting a federal tax refund of $129 million this year, due in part to a combination of tax credits and deductions. This is despite the fact that Amazon nearly doubled its taxable income in 2018 to $11.2 billion, from $5.6 billion a year earlier. In other words, Amazon is basically paying a -1 percent federal income tax rate this year after reportedly paying a federal rate of more than 11 percent between 2011 and 2016, according to The Week. Sen. Bernie Sanders, I-Vt., who has criticized Amazon in the past for not paying higher federal taxes, took to Twitter to point out that any Amazon Prime member paid more for that program’s annual fee ($119) than the company paid in federal taxes. Prime has 100 million subscribers. “Amazon pays all the taxes we are required to pay in the U.S. and every country where we operate, including paying $2.6 billion in corporate tax and reporting $3.4 billion in tax expense over the last three years,” an Amazon spokesperson said in a statement provided to CNBC Make It. Amazon reported its sizable federal refund in a recent corporate filing for the company’s fourth-quarter earnings report. However, Amazon also notes in that filing that it will pay $756 million in total taxes this year, between state and international taxes. A report this week from the Institute on Taxation and Economic Policy, or ITEP, a nonpartisan and nonprofit tax policy think tank, pointed out the fact that Amazon will not pay federal taxes for the second year in a row. In fact, last year, Amazon received an even larger refund, getting $137 million from the federal government. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: http://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC Classic: http://cnb.cx/SubscribeCNBCclassic About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Amazon #Taxes How Amazon Paid $0 Federal Income Tax in 2018
What do you think of the corporate tax rate in America? Should it be higher? Lower?
I'll pretend I understood all that
Sickening! This happens in Australia as well. Big business fat cats lining the pockets of dirty politicians. It really is disgusting. Just imagine that extra tax money going into education, healthcare etc etc
Amazon is c-corporation and gov't tax them twice. One c-corporation pay tax and other shareholder pay tax….if amazon as a separate entity does not pay tax, shareholders pay tax on their earning. I don't see CNBC talk about CNBC tax-saving videos like amazon.
Why do people think it’s a problem? The more successful the company is, the more benefits for employee who really, had nothing to risk in terms of their career. If you think it’s ‘unfair’, then support tax-cuts.
The real problem isnt that we aren't collecting enough taxes it's that we have a bloated federal government that manages to lose trillions every year. It's a fact some branches of government can spend large sums of money without have to report what it was spent on.
Are we remembering that all employees, executives, and Bezos personal salary pay BILLIONS in income taxes on their wages? The company has to pay tax when money is given to people.
Bozo is a big Dem. He should want to do his fair share and pay a lot of tax?!
Raising the tax rate for companies is stupid. In Swiss we have very low cooperate tax. It's good.
The 20% tax is fine. The lower tax rate is needed to be competitive in the global economy. Just get rid of all the tax credits. And to compensate decrease regulation to make starting new businesses in the United States more friendly to increase competition.
Make America a business friendly place where corporations pay a portion of their profit to corporations.
The system in place protects large corporations with lobbyists and lawyers while small business pay a much larger portion in taxes. A decrease in competition decreases employee salaries, decreases tax revenues, increases corruption, and increases the likelihood of a corporate oligarchy.
stop dreaming and don't think another president will change anything. stop using products and services from big corporations. i live without aamzon or starbucks, so can you.
It only makes sense that the richer pay more taxes, that's why our current tax system makes no sense.
trump is a capitalist and yang is a communist
dont care about any of them
Hey At least we know WHY AMAZON FALLING HARD RIGHT NOW. THEIR TAXES AREN’T THE ONLY THING THEY DON’T PAY.” “SAID ALL THE WORKERS WHO’S BACK, JEFF BEZOS BUILT HIS BILLIONS ON.” Then kicked em all to the curb.
They don't have to pay anything as long as amozon give federal government any mailing information that it needs to screw us American people, like back the buying cigarettes on line then federal government suppeon Cigarette company to give up customer info of u bought cigarette on line, then government tax all the cigarette buyer online, now I bet Amazon have to give up info to government with out going to court!
At 10:16 he is reading a script like CNN fake school shooting theme! When u hear an active shooter it means just a drill! Why not just say shooter if second counts!
I usually grumble about this as a business owner, but in my country we pay something call greenfund levy, where regardless of your profits and losses, if you make a sale, you HAVE to pay a percentage of your total sales (regardless of profit) every month.
Socialists, Communists, Fascists, Capitalists. Screw them all! I declare myself King!
Democrats want to increase tax on everything, and then wonder why so many people can't afford to live properly
Taxation is theft.
massive wealth redistribution on its way
Because Amazon gives value to the American economy. That's why.
Not surprised. I've tried to tell everyone this for many years but no-one listened. Look to WHO WRITES THE TAXES, BUT THE RICH…
Close the loopholes so they can't escape paying taxes! Keep it at 5-10% for ALL corps! Use this tax to give every legal US citizen that is 18 (& lived in the US legally for 18years) a monthly freedom dividend.They ALMOST passed the UBI back in the 60s but didn't get enough votes from the corrupt politicians in the gov.
If it is "Quite Normal" for Multi-national corporations to pay no taxes, and also get an additional "Rebate" based on deductions for stock bonuses given to executives, that is not a Normal that I'm content to let stand.
Wow, what a load of crap and misinformation.
taxation is theft
Jeff bozos
if the government has no money , maybe they should do what everybody else does , ….live within your means .
stop spending like a teenager with a new credit card !
Jalopnik said about a decade ago, America (USA) is socialist for the rich and capitalist for the working class and poor.
Yang2020
yang2020!
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Good job new york. There goes your jobs and your economic boost to better your lives.
Can someone pls tell me why cnbc, being a private company, seeks to get people angry at private companies?
We need to Yang Gang our way to the way to the White House.
So Trumps administration is making the rich corporate sellouts even richer, and taking more money from the middle working class men and women? Not a fan, Trump, from Australia.
Ah Corporations and their Corporate Welfare Tax cuts and billions of tax dollars of free money for innovation so they can continue to dodge their responsibility in paying their due taxes as we average Americans pay for all of it as far as I'm concerned Amazon should give us stuff for free since our hard earned money payed for Amazon
THIS IS LITERALLY NOT OK!!!! AMAZON NEEDS TO PAY TAXES!!
Much of the corporate tax is used for support of the military that helps them overseas.
Jeff Bezos is pure genius.
Lowering. Or pirate tax rate helps small business. We should probably not lighten up on tax for the bigger guys tho.
The company that is ruining the economy of United states and probably ruining more.
Bernie 2020
Corporations expect more and more from the workers, but give very little back.
I love this man.
Guys don’t watch it’s a waste
I’ll sum it up for you
He paid less than half of what he owed to IRS auditors
Capitalism only the wealthy have privileges!! And rich get richer!!!
Trump is letting taxpayers get fisted like Putin does the Stable Genius
Every company pays nothing in tax. Every. Single. One. Their customers do. Not them. You people are stupid.
Bernie 2020
All you people are like yang is the only canadate speaking about this Bernie been fighting this for 50 years since he was mayor of a town on Vermont. But I would rather yang than Trump. But we need to get money out of politics and have a government for the people by the people. #GetMoneyOutOfPolitics #WolfPac
Vote Bernie if you don’t want to pay taxes and let the billionaires pay it 🙏🏼🙏🏼🙏🏼🙏🏼👌👌👌☝️☝️☝️
To be fair, if they did, it’d just be a hefty amount put toward boosting the WWIII stockpile nobody in their right mind actually wants.
Good for Amazon. Taxation is theft
Government officials have failed epically!
Automation will destroy jobs
So the richest man on the planet keeps getting richer and gives NOTHING back to society and it's legal. Sounds like the American way… I guess.
how amazon shut down every store in america.
Prime causes workers harm by having to work dangerously fast.
Capitalism with a conscience is what is needed. Shame on Jeff Bezos. No soul.
1:05
4:45 money roll
4:30 stock based
5:15 Amazon broll
Andrew yang has it right, these corporations make money, and no wealth tax will bring the money back to the people. He can get them to pay.
Bald people are evil people , very evil
Disgrace
Only poor people pay taxes in order to be in place by the system, making it harder for you to become wealthy and independent and free of labor. They want you to be a slave in society.
The whole point is not to pay taxes and not to get a return. If you get a return your paying to much in taxes throughout the year. If you have to pay your not paying enough in taxes
I think it’s important to point out that just because the Amazon corporation is not paying income tax this year, it doesn’t mean that Amazon’s business isn’t creating taxes for the US. Every dollar saved on taxes at the Amazon corporate level increases the valuation of Amazon stock by a multiple, creating taxable income for owners of the stock. Also, there are tons of sales taxes, property taxes, state and local taxes that Amazon is paying. Amazon is still rapidly growing so it is deducting a lot of expenses to net out its income. Someday when Amazon’s growth stagnates, it will become a gigantic cash cow with a massive income tax bill every year.
Subsidization through tax break
Yang 2020!!!!!
I got it. ! How about we screw Amazon over and give them the "Crazy Bernie" tax rate. Just like the Brilliant Alexandria Venezuela Cortez did to them in New York. Then watch as they move a Large portion of their operations to Ireland or some other country like Apple & others have done. " We don't need no stinking jobs or economic development and activity " said the Lunatic unemployed Socialist from his Mom's basement.
Yang seems to be the only one with a solution to this. #yang2020 #yanggang
You Liberals do realize when you advocate a company pay higher taxes you're just advocating a higher tax on yourself? Businesses just pass the added expense onto the consumer. A company isn't going to go to it's shareholders and say that revenues will be down by 35% because a Marxist like Sanders thinks they need to pay their "fair share.'
I promise you, corporations will always be smarter than the government and find a way to reduce their tax burden. And all those regulations and laws you pass on businesses, who do you think really wins? The big ones that can afford to hire the lawyers, accountants and administrators to comply. The small ones that can't afford the cost of compliance go out of business ensuring the big corporations stay on top.
For a group of people who say you love small businesses and mom and pop shops, your actions not only say otherwise but have the complete opposite effect you intend. Liberals really do love big business.
They make it sound like very good by saying reinvest in Amazon. Of course. If u have a company is doing well, u reinvest. Common sense.
When news says these companies paid $0 tax, does that mean they don’t pay any taxes and when doing their returns, their accountants work their magic? Or they pay taxes and just get huge refunds?
Fake news. This is not factual. Amazon has not released their finance like that becuz it's private. There is no way to know if Amazon really paid ZERO taxes. Or even the minimum tax this video states. It also blames Trump without stating the reason and benefits.
I do appreciate showing some opposing views, but there's clearly a bias here.
The title is a click bait.
Andrew Yang 2020!
Lower the government still gets other tax money from these companies.. imagine your business starts to make millions and now you have to pay all this tax money which could grow your business more. You already know the government just gone blow the tax money. The debt will never be paid down. It just gives government excuses to take more money from regular people to keep us oppressed. No country follows economic rules to the tee… every country cheats.. so my personal opinion is economics. The fed literally decides how much money to print up and when and how much to charge the government when they do it. If the government printed its own money and paid off the debt then what would happen???
No taxes
No wonder why I got poorer. I’m paying 30% of my income tax. Barely surviving saving pennies. System is so rigged. Making richer more richer. People need to come out protest against this unfair practice. Politicans law makers are in the pocket of 1%
Andrew Yang is right.
Bezos is smart.
Taxation is theft.
Everybody that is giving a negative comment let me ask you one simple question… How many jobs have you created? When was the last time you took a risk and started a business? Exactly you have done neither the hundreds of thousands of people that work for Amazon pay taxes… I don’t care about the profit that Amazon makes that’s their business nobody else’s… They create more jobs every year than any other company
Businesses do not pay taxes, the consumers do, all the bussiness does is transfer your taxes over. When you buy anything you pay for the taxes. If you start taxing companies like they did in the 70s bussinesses close down, jobs are lost. On the contrary, idiots like the ones on this video and stupid politicians that want to raise taxes on companies are the dangerous ones. Just look back in economic history, and tax rates.
He's really good friends with orange man who gave him a secret tax break.
MAKE THEM PAY TAX WE HAVE TO PAY TAX
Andrew Yang MAGA!!!!!
CNBC, once again your reporting is so lazy and so misleading. You're just reporting some party line that "corporations don't pay federal income tax." Yes, they do. They paid their portion of all of the social security and income taxes for their employees and every employee paid taxes on their paycheck from Amazon. So then yes, given all of that tax that they pay we do give them many breaks and deductions on their CORPORATE tax, that is taxes paid on the earnings of the corporation. But to say "they paid zero in federal income tax" is such an irresponsible thing to say.
Tax is legalised theft.
You know, if you would take your lazy ass to the store and stop using Amazon 42 times a week, they’d make no money…..🤷🏻♂️
That last part got annoying
This cnbc media should learn more about business. 🙂 it's useless to rely on just demo left troll party
If Trumpet get out, im gonna party for a week…
I think its time to look at new supplemental ways to finance government other than taxation. It's the XXI century and we still use the same system we did 3,000 years ago to fund civilization. It's unsustainable. I think its time the US explores the idea of creating a massive national investment fund, eventually funding most of the federal budget through the revenue of its own participation in the global private sector.
why is no one talking about Starbucks $0 tax bill?
The problem isn't capitalism nor is it lower tax rates. And the solution surely isn't to vilify corporations and wealthy people to delve headlong into socialism's ravenous maw. The problem is that federal spending hasn't decreased. Republicans want cuts, which are good for drawing businesses to the U.S., but won't cut spending. So, enter the opposing solution (both mentioned in this video). Democrats say we're at deficits, so they raise taxes on, among other entities, corporations. Then turn right around and say, "Hey! Look at all this new revenue. We can now go spend this money we didn't have before." How about this: we cut corporate taxes so they can do what they do. Then we do the two things that haven't been done consistently if at all. Close loopholes (end crony capitalism, which isn't really capitalism) and cut spending. By how much? For starters and to stop the bleeding, take the deficit dollar amount. Break that up by percentage that each department of the government is of the federal budget, then reduce every department's budget by that much. Each department suffers the same, their budget is the same percentage of the current budget but at smaller rates, and we don't go further into debt. Then each year, we shrink it a bit more each time by the same ratios. Oh, and let's stop sending money we don't have to other countries especially those that hate us or are corrupt. Or both. As for New York, how little sense it makes to turn down $27 billion in order to "save" $3 billion, which wasn't ever there. An example of the "Hey! Look" mentality. AOC said that they could take that $3 billion and spend it on teachers, infrastructure, affordable housing, etc. A laudable sentiment to be sure. Except for one small pestering detail. The $3 billion never actually existed. Hmm…
Not all states in the USA have sales taxes and if they did they would have to pay tax on items sold.