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The online shopping and tech giant scrapped plans to build a second headquarters in New York this week after a backlash over a proposed $3bn in taxpayer subsidies. Local politicians questioned why a company that made $1bn a month in the last three months of 2018 alone should be lured to New York with taxpayers' cash. In 2018, Amazon nearly doubled its profits, from $5.6bn to $11.2bn. But far from paying the statutory 21% income tax rate, it reported a $129m federal income tax rebate for the year – a tax rate of -1%. Amazon is not alone. As ITEP pointed out, last week Netflix posted a profit of $845m in 2018, its largest ever profit, but paid no federal or state income tax. "This is not their first rodeo," said Matthew Gardner, ITEP senior fellow. "More than any company I have ever seen they have built their company around tax avoidance." One central idea of Trump's tax cuts was to cut corporate tax rates from 35% to 21% but as the tax filings come in it is becoming increasingly clear that many companies are not even paying the lower rate, he said. "You can't lay the blame too much on Congress," said Gardner. "It wasn't Congress that came up with these ideas. They are the product of a lobbying blitz from these companies. These companies wrote the law in many cases." In a statement sent to the Guardian after the publication of this article, Amazon said it "pays all the taxes we are required to pay in the US and every country where we operate, including paying $2.6bn in corporate tax and reporting $3.4bn in tax expense over the last three years. "Corporate tax is based on profits, not revenues, and our profits remain modest given retail is a highly competitive, low-margin business and our continued heavy investment." designer bags cyber mondaycheap michael kors shoulder bag
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