Amazon paid $250 million tax in Washington for 2017, a disclosure that comes as the retailer fights back against a Seattle City Council proposal that would tax big companies based on their number of employees.
It does include sales taxes paid on the company’s own acquisition of equipment and supplies, but not customer purchases of Amazon sold goods. Government agencies treat individual taxpayer information confidentially.
Companies rarely disclose specifics unless compelled by regulators. Washington has no personal or corporate income tax, primarily funds programs through a sales tax tacked on to the cost of goods and services.
Amazon raised its voice in opposition to the levy. The company shows biggest force in Seattle politics. Outside observers come forward to Amazon executives’ objection to the political climate that brought the minimizing taxes.
On U.S. federal income taxes, Amazon recorded a $137 million refund. Amazon’s securities filings show the company paid $957 million in cash in taxes in 2017 to governments worldwide, after accounting for tax refunds.
In 2021, the levy would convert to a 0.7 percent payroll tax, which would likely increase the cost to the company. If Amazon held to its prior expansion plans that gave it room for 55,000 employees, the company’s tax bill could grow to $43 million.Read Full Article