Business phenomenon in the U.S.: corporations don’t pay taxes

It is very common for companies in the U.S. to avoid paying corporate taxes. An excellent knowledge of tax laws allows such companies to skillfully evade paying taxes.

A 2018 analysis of a number of Fortune 500 companies found that 60 profitable U.S. companies have failed to pay nearly $80 billion in taxes, including Facebook, Amazon, Google, Apple, Uber and others. Not only do these companies find loopholes to avoid paying taxes, some of them are quite successful in claiming tax breaks.

For example, Amazon’s profits rose to $11.2 billion in 2018, almost double the previous year. Do you know how much income tax they corporation paid? $0 and not a dime more. How did they do that? Simple: they reinvested their profits in research, in real estate, and gave away additional financial rewards to their employees. All of this allowed the corporation to get a tax break.