They are propped up by investors and by low interest rates that provide cheap and easy access to capital. ![]() Today, many firms, not just Amazon, have adopted a growth strategy based on rapid expansion and negative cash flow. While the company used accounting techniques to show a positive cash flow on paper, its zero-dollar tax bill more accurately reflects the nature of the business. We should not be astonished that Amazon pays no taxes, for the simple reason that it doesn’t actually turn a profit. Many Americans felt outraged, and shortly thereafter Senator Elizabeth Warren introduced a plan to force companies like Amazon to pay their “fair share” of taxes.īut in this case, the outrage was somewhat misplaced. ![]() ![]() Earlier this year, the Institute on Taxation and Economic Policy, a liberal think tank, reported that Amazon, one of the most valuable corporations in the world, paid no federal taxes on a supposed $11.2 billion in profits in 2018.
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