Paying Tax For Amazon

The less taxes we pay, the more lives we save. The United States has the highest corporate tax rate of the 34 developed, free market nations that make up the Organization for Economic Cooperation and Development (DECD). Unlike other countries, the United States pays a marginal corporate tax rate of 35% at the federal level and 39.2% state taxes are accounted. This is causing thousands of corporations to move operations out of the United States and into other countries. Therefore, the United States should lower the taxes of big corporations.

why do the people of the United States have to pay taxes? Taxes have been a part of history since the start of the first civilizations. There are many different aspects of having to pay taxes, some negative and some positive. Many people think that taxes are outrageous, unnecessary, and torturous. While others consider them to be used for personal protection beneficial to society.

Why is it necessary to pay taxes in the United States? Taxes have been around as long ago as the first civilization. Different aspects are involved in paying taxes, some negative and some positive. While some opinions state that taxes are unnecessary , others affirm that taxes are beneficial and are used for valuable reasons.

Amazon recorded a second quarter loss of $126m loss, or $0.27 per share in 2014, which was more than the $0.15 per share loss expected by analysts, according to data analyzed by Bloomberg and yet its share price rose substantially (Red Herring, 2014). The loss of revenue was due to several reasons. In a conference with analysts, Tom Szkutak, who is the Amazon.com Inc. CFO pointed out the increased investment in its cloud computing Amazon Web Service (AWS), in addition to the price reduction of the AWS for its customers as some of the reasons for the incurred high costs in the quarter (Red Herring, 2014). Other factors of the loss of revenue as explained by Szkutak was the slowdown in international sales mainly due to Japan’s 3% tax increase on consumer goods that came into effect in April 2014, in addition to the $100 million investment on producing Amazon’s TV shows for Amazon Prime customers in the third quarter of 2014 (Red Herring, 2014). The loss of revenue was also due to heavy investment in launching of its first smartphone called the Amazon Fire and a new subscription platform for e-books (Red Herring, 2014).

Amazon.com, Inc. is one of the popular E-Commerce websites on the internet. Besides that, it is also recognized as America 's largest online retailer. It is founded by Jeffrey Preston Bezos in 1994, a former financial analyst for the New York hedge fund D.E. Shaw & Company. Amazon.com is an American e-commerce company with its headquarters located in Seattle, Washington.

The United States of America has a marginal corporate tax rate of 35%, but after state taxes it reaches an astonishing 39.1%. That does not include the fact that there are additional taxes at some local levels. This is the third highest corporate tax rate in the world following only the United Arab Emirates, and Chad. It is true our tax rates are very high, and many American companies say that “they are not able to compete globally” because of these taxes. Still, they find a way to succeed through the loophole infested 72,000 plus pages of U.S. tax code. As a corporation if you could pay no income taxes why wouldn’t you? The answer to this would be because you have morals and ethics. No one ever said that making

Recently Amazon called for new sales tax law in California, because there was no policy to charge sales tax on online retailers before, but in recent amendments in state law of California added that those who have either physical presence or affiliation in California to do business must be liable for sales tax. (Taxnick, 2011), (McCullagh D, 2012)

taxation, which inhibit the cost of delivery of the products. If Amazon does not absorb

, Inc. is an American multinational electronic commerce company in the online retail market. Its’ headquarters is in Seattle, Washington, United States. It is the world's largest online retailer, with different websites for large countries. Amazon was founded by Jeff Bezos in 1994 (the site went online in 1995). It started as an online bookstore, but soon diversified, selling DVDs, Music, software, games, electronics, apparel, furniture, food, and toys.

The issue arose when Amazon refused to pay for Value Added Tax (VAT) since it was only acting as a service provider, facilitating its e commerce platform by allowing the suppliers to store goods in their warehouse. Since Amazon was not “adding any value” to the product, it was not viable to pay the tax. Amazon functions as a mediator between the customers and the suppliers but deducting its share from the payment and passing it on to the suppliers.

But because due to globalization trend and investor has been expose with many alternative choices especially developing countries, US government has realized that high taxation and increased regulation in developed countries have persuaded investors or corporations to search for more favorable countries for investing and doing business, therefore, now United States still taxes the worldwide income of domestic entities, but allows a credit against U.S. tax liability for foreign taxes paid (Salinas, 2003, p 531).

Amazon was founded in 1994 by Jeff Bezos and originally began as an online bookstore (The History of Amazon). Since its creation, Amazon has branched and has turned into an online super store where consumers can buy just about anything: clothing, jewelry, electronics, health and beauty products, home appliances and more. By 2011, Amazon was raking in a staggering fifty billion dollars in revenue (Sawhney, 2014).

Amazon is a global company founded b Jeff Bezos and is one of the world’s largest retail companies. Amazon is known for its global activity, providing jobs, services, products and giving back to communities all across the nation. Amazon has approximately 64 fulfillment sites outside of North

Tax is the government sources of revenue. Government collects tax from citizen of the country and also from the business firm. Every business firms must pay tax for the betterment of the country. Business firms pay much higher taxes then the citizen of the country. But there are some sectors where’s government provide tax incentives. So investors must look after these kind of sectors and make investment over there.

The problem of taxation of international businesses was noticed in the 1920s. It was noted that interaction of domestic tax system of two different countries can result in double taxation and in such way negatively affect growth of global economy. International laws were introduced in order to avoid double taxation and support global economy. However nowadays in a much more globalized economy, such international rules create opportunities to minimize or avoid paying taxes in both of the countries the business is established. The states that decided to provide such opportunities are now known as “ tax havens”