Amazon and likely many more large corporation pay no income tax.

Discussion in 'Latest US & World News' started by hudson1955, Feb 16, 2019.

  1. hudson1955

    hudson1955 Well-Known Member Past Donor

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    Amazon paidnno Federal taxes in 2017 and 2018 due to tax credits and deductions afforded by tax laws set by Congress a decade or more ago.

    Why would these wealthy and profitable Corporations need tax credits and deductions that small businesses and individuals can not take advantage of.

    It is the Corporate tax law and Capital gains rate for Corporations band wealthy investors earning millions and billions and dollars that take advantage of current tax law.

    IMO, Capital gains lower tax rate should only be applicable up to the first 1 million dollars of capital gains and above that amount they should pay Ordinary income tax rates. And where a Corporation has a profit after business expenses of 1million or more, they should not be privy to any tax credits or subsidies, because there business doesn't need it.

    God forbid that sole proprietors should get tax credits or extra deductions
     
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  2. Thedimon

    Thedimon Well-Known Member

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    Proof? Backup?
     
  3. James Evans

    James Evans Banned

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    This is an absolute travesty to all citizens who don't own AMZN shares.
     
  4. Capt Nice

    Capt Nice Well-Known Member

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    There is one saving grace, if you want to consider both sides of the coin. Amazon employs more than 613,000 employees and I'll bet they pay a hell of a lot of taxes in a year. Especially if you think of sales taxes and property taxes in addition to income taxes.
     
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  5. hudson1955

    hudson1955 Well-Known Member Past Donor

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    Yes their employees paid Federal income tax, but it is reported Amazon paid no corporate federal income tax in last two years.
     
  6. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    Yes probably not because they figure their employees pay enough taxes for the both of them
     
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  7. Steady Pie

    Steady Pie Well-Known Member Past Donor

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    Capital gains tax is already a double tax. Exactly how many times do you want to subject the same property to income taxes? 3? 4?
     
  8. Mac-7

    Mac-7 Banned

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    I would like to see a flat tax for business and individuals

    Every corporation should pay the same tax rate and receive no deductions or exemptions
     
  9. Moi621

    Moi621 Well-Known Member Past Donor

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    Corporations are people.

    Fine.

    One Tax Code for all people

    Income is income.
     
  10. Doug_yvr

    Doug_yvr Well-Known Member Past Donor

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    Amazon would pay payroll taxes on those employees' wages. They would also contribute to other entitlements such as social security.
     
  11. Pants

    Pants Well-Known Member

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    The fight should be with the tax laws, not the individual corps that don't have to pay taxes. Now, if they refused to pay or neglected to pay what was owed, that would be a different discussion...

    For the record, I think it is disgusting that large corps pay little to no taxes.
     
    Last edited: Feb 20, 2019
  12. Observing

    Observing Well-Known Member

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    No - capitol gains should be taxed at the same rate as earned income. I have no problem with corporations playing zero income taxes, I don't think they should pay for SS and our healthcare either. Their business is to make money for their shareholders not pay for retirement and healthcare. And I don't think they should be able to "vote" either.

    And capitol gains are not a double tax. A shareholder is a private separate entity. A tax is like any other cost of business that must be paid prior to profits.
     
  13. Observing

    Observing Well-Known Member

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    Correct, they talk out of both sides of their mouths. Stocks historically "pay" about 7% bank interest rates were 3-4%. In order to stimulate investment Capital gains were then adjusted downward from earned income to make it worth the risk over just banking the money. Now with bank interest rates at 1.5% the delta has grown such that more people save in 401s than they do in banks. It is time to eliminate the capital gains tax as a separate tax and treat it as earned income.

    "Regular" people in thier 401s when they retire they pay income taxes on what they withdraw, they don't pay 15% capitol gains on the part that "grew" due to investment.
     
    Last edited: Feb 20, 2019
  14. fmw

    fmw Well-Known Member

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    Lack of understanding all around. Amazon has never been very profitable. I could be wrong but I think they have turned a profit in only a couple of months in their existence. Since business taxes are paid on profits, I wouldn't expect them to pay much. The tax laws are the same for all businesses from amazon to my own small business. Amazon doesn't get any different treatment than I do.

    Capital gains are those gains made from selling a security for more than it cost. It doesn't apply to business profits at all. It applies only to investments in other companies. They apply to you and me. Capital gains taxes are the way they are to provide an incentive for investments in companies which is very good for the economy. The capital gains rates are actually critical to American wealth, both yours and that of the wealthy.

    I should also mention that consumers pay business income taxes indirectly because the taxes cause increased prices. Since you are obviously on the left side of politics you should understand that these taxes are regressive, not progressive like personal income tax. Corporate taxes should be on your list of things to eliminate.
     
  15. hudson1955

    hudson1955 Well-Known Member Past Donor

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    It was stated in the recent news coverage by CNN.

    I will try to do some research on this but according to my tax attorney many corporations pay less tax then our small business.
     
  16. hudson1955

    hudson1955 Well-Known Member Past Donor

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    Own a small business that is not incorporated so we pay individual/ordinary income tax on our Net income. There are benefits that Corporations have that small unincorporated businesses can't take advantage of, in the tax code.

    We could incorporate but that comes with an array of reporting requirements and additional rules and regulations and higher accounting fees:; your tax attorney can weigh the benefits.

    Also, Capital gains tax is much lower than our current income tax rate, but, most of our deposable income goes into our profit sharing account, aside from real estate investment in single family homes that we paid off and rent. The monthly rentals fees will provide additional income when we retire.

    I have never nor will I ever be a liberal. I am a moderate Republican.

    IMO, Corporate income tax should not be eliminated. They should pay tax on their net profits the same as unincorporated businesses are required to do. Corporations o get many tax advantages which already brings down their net earningsfor tax purposes

    I would suggest lowering their tax rate if the loop holes, credits are removed from tax code.
     
  17. rcfoolinca288

    rcfoolinca288 Well-Known Member Past Donor

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    If they already are paying zero taxes, then what is all this nonsense about taxes here being the highest for businesses and and that they are in need of a tax cut??
     
  18. fmw

    fmw Well-Known Member

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    You can do the same thing with an S corporation and have the benefits that accrue to incorporated businesses. So it is a choice on your part and not the right one.

    The reporting requirement is to respond to an occasional form that requests corporate status. Otherwise the reporting requirements are the same.

    Those are personal decisions that you can make with an S corporation.

    I agree. I don't like progressive taxation.

    Just a numbers game. It doesn't matter one way or another. I agree that simplifying the tax laws is always a positive thing.
     
  19. Thedimon

    Thedimon Well-Known Member

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    There has got to be a reason for no income tax.
    LLCs and S-Corps are pass through entities, which means taxes are paid on individual level by the owners.
    Profits can be pulled from a corporation via payroll, which again, means that the taxes are paid by individual employees.
    You can have significant asset write offs that offset profits. Assets are not fully tax deductible, only through depreciation, which means that a company purchased some assets, like buildings, paid taxes and is now taking advantage of the deduction.

    There are a number of legitimate reasons why some companies have no income tax. It doesn’t mean that they cheat the system and it doesn’t mean you need to raise the taxes because you feel amazon or Walmart must “pay fair share”.
     
  20. Gorgeous George

    Gorgeous George Well-Known Member

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    Maybe sole proprietors are not real people but aliens.:omfg:
     
  21. Thedimon

    Thedimon Well-Known Member

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    Go to finance.yahoo.com. Search Amazon. Go to financials tab. Look at income statement.
    Amazon paid over $1B in income taxes for 2018 and $769M in 2017.

    See, I just killed your thread!
     
  22. Gorgeous George

    Gorgeous George Well-Known Member

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    I would just like them to be on a par with a waitress's tips.
     
  23. Gorgeous George

    Gorgeous George Well-Known Member

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    why didn't you post a link?
     
  24. Thedimon

    Thedimon Well-Known Member

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  25. Jeannette

    Jeannette Well-Known Member Past Donor

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    What is the benefit of these corporations being tax free? Is it so they won't leave the US?
     

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