... and has figured out how to beat them.
The Institute on Taxation and Economic Policy (ITEP) released a study which shows that Amazon utilized several legal mechanisms to avoid paying $5.2 billion in federal corporate income taxes in 2021. The result is that the company paid an "effective federal income tax rate of 6%"—far lower than the statutory corporate tax rate of 21%.
The company used such items as tax credits and deductions such as the foreign-derived intangible income (FDII) deduction—which was made available by the 2017 Trump-GOP tax law.
ITEP asserts that over the past four years, Amazon has reported a total federal tax rate of just 5.1% on over $78 billion of U.S. income.
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