How should the United States cope with Amazon, which is running a huge tax escape?
The online shopping giant Amazon has been strongly criticized for not paying the federal tax for the US against the US while making a profit of more than 1 trillion yen in 2018. While many politicians such as President Donald Trump , Senator Barney Sanders , Joe Biden and others are having problems with Amazon's federal tax evasion, The Verge writer Russell Brandon said, The time has come to see the tax return on Amazon. '
America needs to see Amazon's tax returns-The Verge
While many politicians have criticized Amazon's escape from tax, Amazon said, 'Across the United States and all the countries in which we operate, Amazon has $ 2.6 billion in corporate tax over the past three years. And have paid $ 3.4 billion in corporate income tax. ' In addition, it has invested as much as $ 270 billion (about ¥ 29 trillion) in the United States and has claimed 275,000 jobs since 2010, and defends it as fulfilling its corporate responsibilities.
However, Brandon points out that there is one big problem in this dispute between politics and Amazon. The tax return that describes Amazon's tax escape system, which is the subject of controversy, is treated as a trade secret like other companies in the United States and is legally private. In other words, politicians also don't know what kind of tax breaks and loopholes Amazon actually uses and doesn't pay federal taxes.
In addition to offsetting profits by making large investments, Amazon seems to use tax deduction mechanisms to escape tax, such as employee holdings and stock options given to executives. You are However, in reality, the tax escape system that Amazon uses can be known only by guessing, and politicians can not make rational policy decisions based on real data. So Brandon says, 'It's time for America to look at Amazon's tax returns.'
Of course, not only large companies that are fleeing taxes are Amazon, but in 2018, not more than 60 large companies such as
According to Mr. Matthew Gardner of the Institute for Taxation and Economic Policy , although the tax rate on corporate income in the US is 21% in theory, many companies use deductions etc. There are few companies that are%. In addition, the deductions are also various, such as rational capital investment, or arbitrary tax deduction holes.
However, only the staff of the Ministry of Finance and members of the tax committee can actually view the tax return, and highly confidential information does not circulate. As policy makers and think-tank personnel are not able to obtain this information, the corporate tax movement is also in the dark. 'Even if you're a policy maker as of 2019, you can't tell which tax cuts that you have made for Amazon's escape from tax,' Gardner points out.
One of the reasons why companies do not disclose tax returns is the possibility that the declaration will reveal trade secrets about investments in future businesses that are not working in the water and who do not want to be publicized, and top secret projects. there is. However, in fact, a large company that is fleeing extreme tax is organizing a group that involves lawyers, accountants, legals, etc., and doing a large-scale tax flee. Despite many potential backlashes, Mr. Brandon argued that disclosing tax returns already owned by the Treasury is a meaningful reform.
in Note, Posted by log1h_ik