Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Re: Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Message 11 of 23

@mandm84 wrote:

You're the expert Gail !!!


It's a shame that anyone would want to be an expert in justifying that a company making $11 Billion should pay no taxes. The CEO of Amazon is one of, if not the richest' persons in America. Buffett is correct, the biggest corporations and the wealthiest pay nothing near their share in taxes. That statement was true even before the massive tax cuts that trump and the Republicans passed.


tRumpservatives are nuttier than squirrel poop
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Re: Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Message 12 of 23

Have any of you ever started a business?

 

Yes, since July 26, 1978. I started by doing side jobs after work and on weekends around 1976, I bought one tool at a time with the money I made, my first truck was a 1954 Ford F-100 I bought for $ 100.,  incorporated in 1980.

 

Have you ever looked at and digested a business tax return -of any type of business.?

 

I file a 1120 S every year, and the State business tax return, along with a property tax return.

 

Do you even understand taxes except for standard/ itemized deductions, exemptions or "where's my refund".?

 

Yes, it's really not that hard to understand, unless it's made hard to understand, gross receipts minus allowed deductions equals profit.

 

I will say here I don't use tax havens or carried interest or any of the stuff the big corporations use, I get paid $ 100, I deduct the materials, payroll, and other allowable deductions and what is left over is profit.

 

Sure there are lots of tax credits available to businesses.

 

There are. 

 

Thought that was how government got them to do what they wanted - invest in new equipment, invest in green energy, hire this type of person (over another).

 

The flip of that was and should be, if you don't plow that money back into the business, in as you say,  new equipment, energy efficiency, investment into your employees, if you put that money into your pocket instead of the business, then you a top marginal rate of 91%

 

Result .......... you put the money back into the business and not in your pocket to avoid taxes. The business fulfills their part of the social contract to the society that allows them to be in business at all. Would Amazon be possible without the roads and transit infrastructure  the public built? No Amazon would not be possible, and neither would my little Mom and Pop plumbing shop.

 

Businesses also have start up cost - that could produce losses that can be carried over until recooped. 

 

For twenty years? 

 

If you don't make a profit three years out of five your business is a hobby, not a business.

 

Do you know the difference in PROFIT and TAXABLE INCOME - doubt it !

 

Yes

 

 

Do you know anything about various business structures ?  Amazon is a really BIG company with tons of subsidiaries. 

 

 

Why, I can understand vertical integration in say a company like Toyota, they want to own the companies, the trade secrets, the supply chain that they depend on to make Toyota cars.

 

Why does Amazon need vertical integration, Amazon doesn't actually make anything, it's a market place, Amazon are traders, not a manufacturer. Sure they own places of business, they have employees, they warehouses goods and process orders of things other people make deliver.

 

 

They are also global - they may have to pay taxes in many different countries - different states too- deductible, of course. 

 

I think  money effects politics may be a global problem.

 

 

https://mic.com/articles/78669/11-loopholes-the-world-s-biggest-corporations-use-to-skirt-the-rule-o...

 

 Loopholes the World's Biggest Corporations Use to Skirt the Rule of Law
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Re: Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Message 13 of 23

Schedules, net profit and loss....huh, darn it I always had a feeling those were more important than the actual person working to make that profit!  Darn it, now how are we ever going to get a slice of that American Pie?  I have to use those big box corporations in order to survive and I know many of the elder who are on the structured living of "retirement" who also are in the check out lines. So,in the long run I guess, they will rule the path anyways, no? Don't bite the hand that feeds you???  Soooo much has changed since I started a business in a limited partnership, which dwindled down to just plain old self-employment. But then again, I wasn't in it to rob my contracted employment, but to just make a good living by working hard, huh (that must be where I went wrong LOL)!

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Re: Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Message 14 of 23

@mickstuder wrote:

 


Ha ha ha - "Net Operating Loss Carryforwards" - The average full-time American Worker makes on average nationally - about $38,000 

 

If you divide Amazons 11 Trillion by 37k - my math comes out to about 300,000

 

That's 300,000 American workers income that it takes to equal Amazons

 

How much do you think each of those American Workers has to pay in US Income Taxes after they get to claim their own - "Net Operating Loss Carryforwards"

 

Answer - the exact same amount as before they applied their - net operating loss carryforwards - because working Americans dont get those or any other generous deductions or accounting tricks from.the US Tax Codes

 

In fact after the recent Trump/GOP Tax Bill - we dont even get to deduct our Mortgage Interest - Real Estate Taxes - Investment Advice - NADA

 

Just another example of how the total US Assets are coming under the control of fewer & fewer people like Bezos - because at the end of the day Amazon gets the Tax Breaks but Bezos gets the Money which has made him not only the Richest American but the Richest in the World

 

 

 

 


@mickstuder 

 

There are differences in a business tax reporting and an individual tax reporting but in many ways they are the same.

 

The figure of profit for Amazon is their GROSS Profit - their taxable profit come after all other expenses are used less any losses from current year or even what was left over from previous year(s) since there is an annual limit on the amount of loss but anything over that limit is carried over to the next year(s).

 

Accounting profit, includes all related costs of doing business.

There are several components that go into calculating accounting profit.

Gross profit is the difference between sales and cost of goods sold, or the cost of production.

Companies subtract all other expenses from gross profit to derive accounting profit. Operating expenses include rent, utilities, interest, depreciation, amortization, salaries and other day-to-day costs of running the business.

 

For you to actually see this, a very simple way, is to look at IRS Form Schedule C for sole proprietors.  Sect.III is the Gross Profit and the Net Profit is line 31.  

Once all credit adjustments are made and any losses are used - you get to their taxable profit or Accounting profit for the business - Amazon had NO Taxable Profit.

 

IRS - Form Schedule C

 

The taxable profit is reduced more by any loss - carried over or current year - which is within the limits of the loss limit - anything further is carried over to the next year(s)

 

Of course, an individual's tax return is different but there are similarities and any individual can have losses and carried over losses.  They have credits too although different than on the business return in nature.   An individual can either file using the standard deduction or itemize deductions if higher than the standard deduction.  After all of this is done, we come up with the individuals taxable profit (accounting profit)

 

I haven't had a mortgage in over a decade but mortgage interest is still deductible although there is a limit, it is a very high one, most likely only affecting the more well off - state and local taxes are still deductible up to a limit as well as medical cost as defined by the IRS.

 

Amazon and your described individual just have different numbers and different types of limits in credits, adjustments and losses and carry overs.


* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Message 15 of 23

@GailL1 wrote:


@mandm84 wrote:

I'm sure you know more than Billionaire Businessman Warren Buffett , who states corporations and the Wealthy don't pay their fair share Buffett said that Corps didn't need a lower Corp tax rate-

In Amazon's case at least right now and probably for several more years - the rate does not matter to them.  They just have to make sure those profits are large enough to slurp up the losses before the expire.

 

The TCJA doesn't have much to do with Amazon not paying taxes right now - they haven't paid any in several years.

 

From the Marketwatch link which I posted in my previous post:

 

. . . .the internet giant has billions of dollars in various credits it could apply to offset future taxes as well.

 

As of Dec. 31, Amazon had federal operating loss carryforwards of $627 million, foreign balances of $7.8 billion, and state balances of $919 million.

 

Net operating loss carryforwards are created when a company’s deductions for the year are more than its income. Companies can use a federal tax loss carryforward by deducting it from their income in another year or years.

 

If not utilized, a portion of the federal, foreign, and state net operating loss carryforwards will begin to expire — some as early as the end of this year — which means you can expect to see Amazon report at least enough net income in 2019 to take advantage of the foreign and state net operating loss carryforwards rather than allow them to expire unused.

 

Amazon also has tax credit carryforwards of approximately $1.7 billion and federal capital loss carryforwards for income tax purposes was approximately $261 million. A portion of those tax credit carryforwards will begin to expire in 2022


Ha ha ha - "Net Operating Loss Carryforwards" - The average full-time American Worker makes on average nationally - about $38,000 

 

If you divide Amazons 11 Trillion by 37k - my math comes out to about 300,000

 

That's 300,000 American workers income that it takes to equal Amazons

 

How much do you think each of those American Workers has to pay in US Income Taxes after they get to claim their own - "Net Operating Loss Carryforwards"

 

Answer - the exact same amount as before they applied their - net operating loss carryforwards - because working Americans dont get those or any other generous deductions or accounting tricks from.the US Tax Codes

 

In fact after the recent Trump/GOP Tax Bill - we dont even get to deduct our Mortgage Interest - Real Estate Taxes - Investment Advice - NADA

 

Just another example of how the total US Assets are coming under the control of fewer & fewer people like Bezos - because at the end of the day Amazon gets the Tax Breaks but Bezos gets the Money which has made him not only the Richest American but the Richest in the World

 

 

 

 

( " China if You're Listening - Get Trumps Tax Returns " )

" )
" - Anonymous

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Re: Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Message 16 of 23

@mandm84 wrote:

I'm sure you know more than Billionaire Businessman Warren Buffett , who states corporations and the Wealthy don't pay their fair share Buffett said that Corps didn't need a lower Corp tax rate-

In Amazon's case at least right now and probably for several more years - the rate does not matter to them.  They just have to make sure those profits are large enough to slurp up the losses before the expire.

 

The TCJA doesn't have much to do with Amazon not paying taxes right now - they haven't paid any in several years.

 

From the Marketwatch link which I posted in my previous post:

 

. . . .the internet giant has billions of dollars in various credits it could apply to offset future taxes as well.

 

As of Dec. 31, Amazon had federal operating loss carryforwards of $627 million, foreign balances of $7.8 billion, and state balances of $919 million.

 

Net operating loss carryforwards are created when a company’s deductions for the year are more than its income. Companies can use a federal tax loss carryforward by deducting it from their income in another year or years.

 

If not utilized, a portion of the federal, foreign, and state net operating loss carryforwards will begin to expire — some as early as the end of this year — which means you can expect to see Amazon report at least enough net income in 2019 to take advantage of the foreign and state net operating loss carryforwards rather than allow them to expire unused.

 

Amazon also has tax credit carryforwards of approximately $1.7 billion and federal capital loss carryforwards for income tax purposes was approximately $261 million. A portion of those tax credit carryforwards will begin to expire in 2022


* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Message 17 of 23

I'm sure you know more than Billionaire Businessman Warren Buffett , who states corporations and the Wealthy don't pay their fair share.

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Re: Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Message 18 of 23

You're the expert Gail !!!

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Re: Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Message 19 of 23

Amazon hasn't paid taxes in several years and according to my reading will probably not until about 2022 or so - depending on outside stuff.

 

Better Read This -

MarketWatch 02/19/2019 - Amazon riled up the left for not paying federal taxes — and it’s in a posit...

 

Have any of you ever started a business?

Have you ever looked at and digested a business tax return -of any type of business.?

Do you even understand taxes except for standard/ itemized deductions, exemptions or "where's my refund".?

 

Sure there are lots of tax credits available to businesses.

Thought that was how government got them to do what they wanted - invest in new equipment, invest in green energy, hire this type of person (over another).

Businesses also have start up cost - that could produce losses that can be carried over until recooped. 

 

Do you know the difference in PROFIT and TAXABLE INCOME - doubt it !

Do you know anything about various business structures ?  Amazon is a really BIG company with tons of subsidiaries.  They are also global - they may have to pay taxes in many different countries - different states too- deductible, of course. 

 

The Balance 01/16/2019 - 6 Tax Credits to Reduce Your Business Taxes

 

What do you want ?  Don't like it - change the tax code and then watch companies move somewhere else. 

 

Here is a company that is trying to be the green thing - want to take away that incentive too?

GreenBiz: 02/22/2019 - Amazon shipping could be a tipping point for electric fleets

 

 


* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: Amazon will pay $0 in taxes on $11,200,000,000 in profit

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Message 20 of 23

When will society look into what/why these corporations are rising to this level?  Example is, when will they actually discover that the wages of the middle to lower class of society has to rely on these big box mega giants to actually afford to progress in life?  The high costs of housing, utilities, insurances and vehicles have made it virtually where they have to rely on the corporate giants to buy their food, clothing, home essentials and what not. Just a bunch of bureaucracy at work....loopholes....tax credits as incentives. Again, citizens united means nothing, in my opinion.

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