The FINANCIAL — Amazon, which doubled its profits and made more than $11 billion in 2018, won’t pay any federal income taxes for the second year in a row, the Institute on Taxation and Economic Policy has reported.
The company will not be required to pay the standard 21 percent income tax rate on its 2018 profits, and is claiming a tax rebate of $129 million, which ITEP describes as a “a tax rate of negative 1 percent.”
Amazon drew ire in 2018 for not paying federal taxes on its $5.6 billion in profits the year before, which was made possible due to tax credits and stock-based compensation, reports Politifact. Last year was the first time Amazon paid no federal income tax whatsoever.
From 2011 to 2016, Amazon payed federal income tax at a rate of 11.4 percent — less than half of the national rate of 35 percent. Due to President Trump’s corporate-friendly tax cuts, Amazon will pay any deferred or postponed taxes at the lowered rate of 21 percent rather than the previous rate of 35 percent, per Politifact.