boom in profits, but zero taxes in the US

It was a record-breaking 2018 for Amazon, with the group coming to touch i one trillion capitalization and to close the year with a profit of 11.2 billion dollars, exactly double compared to 5.6 billion in 2017. Nonetheless, the Seattle giant paid zero taxes in the United States if federal income taxes are taken into account.

Amazon, zero taxes in the USA

This was denounced by the Institute on Taxation and Economic Policy, a non-profit organization founded in 1980 and since then active in monitoring the behavior of large companies in terms of taxes, which explains the mechanism used by the Jeff Bezos so as not to write any checks to be allocated to overseas public coffers. Indeed, Amazon managed to recover $ 129 million in refunds.

The main cause is to be found in the reduction of the tax rate from 35% to 21% for the taxation of profits generated by the stars and stripes companies, foreseen by the tax reform wanted by Trump. A measure introduced in order to incentivize investments, an objective not always achieved. Furthermore, the e-commerce giant benefited from the deductions linked to the many projects implemented in the research and development area as well as the possibility of deducting the value of the shares granted to its employees (almost always in management positions) from the taxable amount. ). All out in the open and fully legal.

Although Amazon is known to the general public mainly for its role as a leader in the world e-commerce, the range of action of its business is much wider, reaching to involve territories such as cloud, advertising e hardware. Just think of AWS solutions, the now almost ubiquitous Alexa virtual assistant and devices from the Echo range.

Jeff Bezos e Donald Trump

The relationship between the top management of the group and the current administration USA it is certainly not without tension. A while ago Trump called his number one Jeff Bozo and recently the parties have returned to clash, albeit indirectly, on the affair that saw the National Enquirer ricattare Bezos threatening the publication of photographs of a private nature, exchanged with alleged new partner Lauren Sanchez.

The tax issue, it should be noted, does not only and exclusively concern Amazon, but the entire ecosystem of groups that are part of Silicon Valley and, more generally, those attributable to the US hi-tech panorama, protagonists of past growth in recent years. sometimes well beyond analysts’ wildest expectations.

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