The Institute for Taxation and Economic Policy (ITEP) reported that Amazon, the Corporate giant paid no federal income tax on profits of $11.2 billion last year thanks to a variety of tax credits and loop holes and actually received a federal tax rebate of $121 million last year giving it an effective federal tax rate of roughly -1%. It was the second year in a row the company paid no federal taxes.
The poorest 20 percent of American households paid an effective federal tax rate of 1.5% in 2015 according to the report while Amazon paid zero federal tax in 2017 and 2018. And from 2009 to 2018 Amazon earned roughly $26.5 billion in profits and paid approximately $791 million in federal taxes for an effective rate of 3% for that period. That is well below the 35% federal tax rate in effect most of those years and the 21% rate that came into effect with the Trump-GOP tax reductions of 2017. And ITEP studies show that other large Fortune 500 companies also did not pay near the stated corporate federal tax rate during that same time period.
Trump's recent statement that America will never become a Socialist country is the height of hypocrisy. He and his party relate Socialism to social security, medicare, food stamps, health care and any thing to do with the public and those in need. But the Trump-GOP tax plan of 2017 that favors those who need the least. That Trump-GOP tax plan did not close the loop holes or special tax breaks that allow big business to pay no tax even when profitable. And of course the 14% reduction in corporate federal tax and previous tax cuts by the republicans that favor the wealthy and corporate America has their signature as the originators of Socialism in favor of the big and powerful.
Socialism, republican style will cost the tax payers $1.5 trillion because of the tax cuts that will be paid by the tax payers that happen to be the middle class and the poorest tax payers that actually pay federal taxes. The public will hear Trump and the GOP talk a lot about Socialism between now and the 2020 Presidential election and try to convince the people that the democratic party wants America to become a Socialism state. They will try their best to hide their Socialism agenda that the republican party has always pushed and that Trump always supported. Trump's tax returns would show just how much he loves Socialism for the wealthy and corporate America. And that really says it all.
This commentary written by Joe Lorio
