Amazon will not pay any federal income taxes for the second year in a row, according to a report released Wednesday
The Institute on Taxation and Economic Policy found that the online retailer, which reported $11.2 billion in profits in 2018, did not pay income tax because of unnamed “tax credits” in their disclosure.
The company will reportedly receive a $129 million federal income tax rebate, effectively making their tax rate -1 percent.
The company also reportedly paid zero federal income taxes for 2017, when it made $5.6 billion in U.S. income.
A spokesperson from Amazon challenged this week’s report, saying the company did in fact specify what tax credits they used and that the report made mistakes in calculating 2016 tax expenses.
“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,” they said. “Corporate tax is based on profits, not revenues, and our profits remain modest given retail is a highly competitive, low-margin business and our continued heavy investment.”- READ MORE