Amazon's US tax cut proposal rejected

According to foreign media reports, at a recent Fort Wayne City Council meeting in Indiana, Amazon's tax cut proposal was rejected with a vote of 3 (in favor): 5 (against): 1 (abstention).

The proposal states that Amazon will pay no property taxes at all during the first year of the Flaugh Road distribution center, but will gradually increase the tax rate over the next nine years, and by the tenth year its tax rate will exceed $1 million.

Supporters of the vote said that if the proposal is not passed, Amazon will seek other investment markets, which will reduce many local jobs and cause many people to lose their original job opportunities. But opponents do not think so. They believe that with the completion of Amazon's Project Mastodon, 1,000 jobs will be created and Amazon will be able to afford the taxes.

It is reported that in the spring of this year, the city council implemented a $16 million tax reduction for Amazon, but the law at that time was for personal property. It can be seen that Amazon has a difficult time in tax reduction. This veto directly shattered Amazon's dream of tax reduction.

In fact, Amazon's tax payment has always been low. A few years ago, Amazon made full use of various US tax policies to achieve the lowest corporate tax payment. States across the United States provide preferential tax policies to companies to attract companies, and implement R&D tax credits to encourage companies to increase R&D innovation, which provides opportunities for Amazon.

As a large and important company in the United States, Amazon's low tax payment has attracted a lot of discussion. This was particularly evident in 2017 and 2018, when people including senior US leaders expressed dissatisfaction with Amazon's low tax payment and questioned whether Amazon's low tax payment was suspected of being illegal. However, Amazon quickly responded, saying that Amazon did not owe any tax. Even the classic Amazon transfer pricing case in 2017, facing the anti-tax avoidance investigation by the US IRS (Internal Revenue Service), ended with Amazon's victory.

Although Amazon's tax reduction proposal was rejected, Amazon can still use other conditions to maintain a lower level of taxes. This proposal can be said to be a further strategy for Amazon to minimize its own taxes and maximize its profits.

Amazon, US, tax cut proposals