Amazon's tax bill has seen a significant reduction, falling to $1.2 billion last year from $9 billion the previous year, despite a staggering 45% increase in its profits, which reached nearly $90 billion.
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finance.yahoo.comThis drop in tax liability can be attributed primarily to the extensive depreciation breaks included in the Tax Cuts and Jobs Act (TCJA) enacted by the GOP in 2017.
bipartisanpolicy.orgHowever, critics argue that it has disproportionately benefited large corporations like Amazon, allowing them to significantly reduce their tax bills.
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americansfortaxfairness.orgAmazon has stated that it invested around $340 billion in the US last year, emphasizing its role as a leader in innovation and economic growth.
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finance.yahoo.comThe company's effective federal tax rate for 2025 was reported to be 19.6%, although this figure does not fully reflect the impact of the substantial depreciation write-offs that the TCJA allows, which essentially shifts tax liabilities to future periods.
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finance.yahoo.comAmazon asserted that while the policy enables quicker deductions, it does not alter the total amount of tax owed over time.
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finance.yahoo.comIn terms of cash payments made to the Treasury Department, Amazon reported contributing $2.75 billion in income taxes last year, down from $7.63 billion in 2024.
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finance.yahoo.comNotably, Amazon has never paid the corporate alternative minimum tax, a provision aimed at ensuring that profitable companies pay at least a minimum amount in taxes.
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finance.yahoo.comThe reduction in Amazon's tax bill has sparked renewed criticism, particularly from Democratic lawmakers who have long accused the company of not paying its fair share.
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finance.yahoo.comamericansfortaxfairness.orgAmazon faces scrutiny not just for its tax payments, but also for how it allocates its resources post-tax cuts.Critics highlight that much of the financial relief provided by the TCJA has not translated into significant benefits for workers, who have seen minimal wage increases or bonuses related to the tax cuts.
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americansfortaxfairness.orgWhile the tax cuts were marketed as a means to stimulate wage growth and domestic investment, the reality appears to show that most benefits have flowed to shareholders instead.Corporations have largely utilized their tax savings to buy back shares rather than invest in workforce expansion or employee compensation.
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americansfortaxfairness.orgbipartisanpolicy.orgThe overall impact of the TCJA has been a significant drop in corporate tax revenues, which fell by about one-third in the years following its enactment, while corporate profits have soared.
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americansfortaxfairness.orgIn fact, Amazon has reported paying no federal income taxes on billions in profits over the past two years, even receiving tax rebates, which raises questions about the effectiveness of the tax law in promoting equitable fiscal responsibility among large corporations.
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itep.orgAs lawmakers continue to debate the future of tax policy, the implications of the TCJA and its effects on companies like Amazon remain central to discussions on fiscal fairness and economic equity.
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americansfortaxfairness.orgbipartisanpolicy.orgThe ongoing scrutiny of Amazon's tax strategy serves as a reminder of the complex interplay between corporate profits, tax legislation, and the responsibilities of large corporations to contribute to the public good.
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americansfortaxfairness.orgMoving forward, how Amazon and similar corporations respond to public and governmental pressure regarding tax contributions may shape the narrative around corporate accountability in America.
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itep.orgbipartisanpolicy.orgThe case of Amazon exemplifies broader concerns regarding the tax landscape post-GOP cuts and underscores the need for ongoing examination of corporate tax strategies in relation to economic performance and societal expectations.
