If they spend it on their HQ2, let say it is $2B, do they wipe of the $1 Profits this year, ( Paid no tax ), and Net Operating Loss of $1B, which get deducted next year. Assuming they make the same $1B profits next year, that is No Tax again right?
One of the problem I see is that many companies buy Asset like property asset to avoid taxes.
Re:Amazon paid no US income taxes for 2017
by matt_wulfeck on Friday March 02, 2018 @11:25AM
(#16502854)
Theres an important distinction in deferring taxes versus avoiding taxes. Every time they buy a peice of property there’s taxes on the sale. Every year there’s property taxes (very high in WA), then finally there’s a sale and guess what?
Sorry it was a hypothetical question, didnt know there is property tax in US.
Re:Amazon paid no US income taxes for 2017
by dustingetz on Friday March 02, 2018 @07:14AM
(#16500849)
so what happens when you pay with options? they pay corp tax which ends up less?
Re:Amazon paid no US income taxes for 2017
by ambernightcrush on Friday March 02, 2018 @07:16AM
(#16500859)
The employees who get stock options, is the assumption here. Which of the warehouse runners have equity from Amazon?
But that's good. The employees all made lots of money (and will be taxed on it, often at a higher rate than the corporation would have paid!)
So run the same scenario again, but this time say "stock options" instead of salary.