T The companies do not pay their taxes. Amazon, Facebook, Google, Netflix, Apple, and Microsoft may have saved over $ 100 billion in taxes they have been required to pay since 2010, according to a new report by the UK-based tax-audit organization Fair Tax Mark. That's enough to give three million Americans the median annual per capita income, 14 percent of the annual US spending on K-12 education, 500,000 US homes, a nearly two-million-foot stack of 1-dollar bills (19459003) and to pay 56 million square feet of Manhattan real estate, 50 billion cans of beans, nearly 1 billion years of Netflix … As appropriate for you to fill in.
In general, about half of what they allegedly had to pay under corporate tax rates came from our pockets in subsidies and tax breaks, not to mention the huge cash reserves they had in the ports of Bermuda, Ireland, Luxembourg and hoard the Netherlands to list some of the locations listed by Fair Tax Mark .
"Your accounts actually have tremendous, non-repatriated income overseas, and they are bringing these historical amounts back to greatly reduced rates, according to Trump's Tax Cuts and Jobs Act 201
Fair Tax Mark's report points to Apple's long habit of mixing its money worldwide Apple agreed in 2017 to pay unpaid taxes to Ireland of $ 14.6 billion and has since added another $ 14.3 billion census to the EU, which she does not want to pay. And Apple successfully avoided paying $ 50 billion in taxes on untaxed cash stored abroad, and brought it home for Trump's sweet $ 38 billion one-off charge.
Fair Tax Mark focuses on "paid cash taxes" The actual amount of taxes paid after deductions and reimbursements compared to tax provisions is the amount that companies are expected to pay in their public financial statements, including deferred taxes that may be paid in the future be or not. Note that the corporate tax rate was 35 percent before it was reduced to 21 percent by the Trump administration in 2017.
- Amazon has paid $ 3.4 billion in income taxes over the past decade, equivalent to 12.7% of profits during that period.
- Facebook has paid 10.2% of its profit since 2010, "at a time when the federal tax rate in the US was 35% in seven of the eight years studied. "
- Google has claimed that its global tax rate has exceeded 23% in the last 10 years, which is the legal average rate of 23.7% in OECD member countries." actually given 15.8 percent of its profits in cash paid taxes.
- Netflix also paid 15.8 percent of its profit, despite operating at very low profit margins.
- Apple, "posing as the world's largest taxpayer", comes up with a total payout on its word income taxes of $ 93.8 billion over the decade, but the percentage of profit is still only 17.1 Percent.
- Microsoft "has the least aggressive approach to tax avoidance of the Six," they write and pay income taxes of $ 46.9 billion, even though this represents 16.8 percent of the profit A spokesman told Gizmodo that Fair Tax Mark "ignores the reality of today's complicated international tax system and falsifies the facts documented in our regulatory filings." They continue, "Like other multinationals, we pay the vast majority – more than 80% – of our corporation tax in our home country. As we have already said, we strongly support the work of the OECD to remove the current uncertainty and to develop new tax principles. "Google declined to comment on the relevant allegations in the report.
This statement addresses the issue of Fair Tax Mark, which is related to Google's statement about paying 23 percent in global, non-US taxes. "Google's statement reinforces our claim that most of the tax gap is likely to be outside the US," Monaghan told Gizmodo. "In recent years [less than]50% of Google's reported profits are" foreign, "but obviously not the taxes paid!" US in 2017 and 2018, mainly due to tax relief. Some economists (and politicians ) argue that these are essential for economic growth; others emphasize that this is completely legal . Bernie Sanders calls this absurd .
Amazon argued in a statement to Gizmodo that it was unfair for Fair Tax Mark to associate them with "technology companies" with higher profit margins, as if Amazon was not a technology company. "Amazon is primarily a retailer with low profit margins," wrote a spokesman. "Therefore, a comparison with technology companies with operating margins of more than 50% does not make sense." Amazon is a technology company, and Monaghan wants to point out that Amazon Web Services accounts for more than half of its profits . (It also relieves much of the overheads that traditional third-party retailers must pay for.) Also, Monaghan writes that Amazon's claim that its colleagues are operating at 50 percent profit margins is wrong: "The margins of The Other Companies Over the decade, Google (27%), Apple (30%), Microsoft (31%), Netflix (4.5%) and Facebook (44%).
Amazon's profit margin is truly low. As Bloomberg explains it can do this by investing in new warehouses and writing off employees in stocks to which it can claim deductions. In addition, research and development loans and tax credits for past losses are used. Bloomberg writes at the time: "The US corporation tax debt can be reduced to zero." According to the Fair Tax Mark, these losses add up to $ 9.3 billion in funds that Amazon can use for future taxes.
Amazon spokesman also said, "Amazon represents about 1% of global retailer sales with major competitors in each of our countries, and had an effective tax rate of 24% on profits from 2010 to 2018 – not even" dominant "or" untaxed ". "
Monaghan figured the effective tax rate at 21.4 percent, but" [l] it's said Amazon is right, "he argues: this figure is still deliberately misleading because it applies to Amazon's funds, the taxes not what they actually pay. "In terms of the cash actually paid – the cash taxes paid – the figure is 12.7% in the last decade . They do not deny that number but guide the people wrong to a bigger, vague and different figure. "Monaghan says Fair Tax Mark has sent all the numbers to the six companies, none of which has been disputed.
That's still not the case. It's not about the question What Businesses Should Have Paid Sure, $ 3 billion in subsidies to the city and state for Amazon's proposed New York headquarters might have been the "amazing return on investment." which Bill de Blasio had expected . But they're playing with our money, and so far Google's New York campus does not seem to have done much to alleviate New York's human rights crisis. People are sleeping on the sidewalk, rents are rising, and it is freezing out here. Jeff Bezos could spend a few billion dollars from time to time, with a hundred more.
Gizmodo has turned to Netflix, Facebook, Apple and Microsoft and will update this post when we hear it.