Amazon's Tax Controversy: A Closer Examination
2020-2021 Tax Payments
In 2021, Amazon reported paying $23 billion in federal income tax expenses, $52 billion in other federal taxes, and over $4 billion in state and local taxes. This suggests that Amazon did not avoid paying federal taxes during that year.
2017-2018 Tax Credits
Contrary to the claim that Amazon received tax credits, the company actually paid $162 million in federal income tax in 2017 and 2018. While it may have received tax incentives, these do not equate to avoiding taxes altogether.
2020 Tax Obligation
The statement that Amazon paid $162 million in federal income tax in 2020 is accurate. This represented approximately 12% of its pre-tax income of $139 billion.
Two Consecutive Years of Zero Taxes
The assertion that Amazon paid zero taxes in two consecutive years is incorrect. While the company had received tax credits in the past, it paid $162 million in federal income tax in 2019, as reported in an SEC filing.
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