Amazon will not pay the federal taxes for the second year in a row

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The US-based e-commerce giant and one of the wealthiest company in the world by its market value, will not be paying taxes to the federal for its second consecutive year.

Quoting to the US-based Institute on Taxation and Economic (ITEP) reports, Fortune Magazine reported said that “Amazon Inc, will not pay any cent in federal taxes for the second year in a row, even after the profit of Amazon has doubled from $5.6 billion in 2017 to $11.2 billion in 2018.”

“Even at this, Amazon reported a $129 million in 2018 federal income tax rebate which was making its tax rate to -1%,” the report added.

On March last year, President Trump on Twitter blasted on Amazon for its limited state taxes, which affected the company shares by 9%, but ITEP stated that the non-existent federal tax payment is a result of the Trump Administration’s Corporate-friendly tax cuts.”

The think tanks reported that “the 2017 tax cuts and Jobs Act not only decreased the corporate tax rates from 35% to 21% but this did not close a slew of tax loopholes that allow the profitable companies to routinely avoid paying federal and state income taxes on almost half of their profits.