How Companies Like Amazon, Nike and FedEx Avoid Taxes

At least 55 of the largest corporations in America paid no federal corporate income taxes on their 2020 profits, according to the Institute on Taxation and Economic Policy. Some of these companies include big names FedEx, Nike, HP and Salesforce, and it's costing the U.S. government billions of dollars. Those 55 corporations would have paid a collective total of $8.5 billion. Instead, they received $3.5 billion in tax rebates, collectively draining $12 billion from the U.S. government. These estimates don't include corporations that paid only some but not all of these taxes, like Netflix and Amazon.

Watch the video above to learn about how the most profitable companies in the country maneuver the complicated tax system to avoid federal corporate income taxes, different forms of tax expenditures and what policy solutions may bridge the gap.

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How Companies Like Amazon, Nike and FedEx Avoid Taxes

[deadringer]

"Don't hate the player, hate the game."

[win]

The government should write a report every year on where our taxes go so we know

[robertprice]

I own a small LLC which is a governmental contractor- engineering manufacturing business. We build things for the military. I’m retired military, so I was new to the business world. The crazy thing is if a corporation doesn’t take advantage of all the crazy rules and deductions it’s nearly impossible to stay in business. I located in my home town which is small and in need of good jobs. It adds to my costs but I get huge savings on state and local taxes because the state wants small towns to have good jobs, so does the town! At the federal level we cut taxes anyway we can.
The result is this: I employ 350+ people with good pay and benefits. We donate very heavily to the local schools; three elementary, one middle and a high school. We give startup funds to new teachers, and innovation grants to classroom. We also donated heavily to a local not for profit school who trains the mentally handicapped for jobs and life skills. We hire veterans and we have bought several old buildings on the edge of the commerce district downtown for renovation to add space for business start ups. We give scholarships to students who are headed to college or technical school.

So who really pays corporate taxes? If I paid high corporate taxes I wouldn’t be able to give to the community the way I do. I wouldn’t be able to expand, and grow into other areas. What I would do is pass that expenses to the costumer. As it is, I employ 350+ people who pay income tax, buy houses, cars, boats, raise kids and so on. We enable people and the community. Admittedly, we give heavily to the community, but large corporations do as well.

Personally I think we expect corporations to foot the bill for government excessive spending. Rarely to we say let’s cut government spending on programs that don’t work, countries that hate us, or congressional pet projects. It’s “there’s money let’s get it and spend it.” I would be out of business if I operated that way.

[GeneralChangFromDanang]

My goal with starting a small business went from making money to paying as little in taxes as possible. If it looks like I'm going to owe in, I'll make a machinery purchase.

[curtissjody]

The FED has lost it and the sad fact is, it's pretty obvious we are headed for hyperinflation. I think stores better have tight security because when people can't afford to feed their families, things might get ugly

[michaellim]

The more archaic, complicated and subjective the laws are the more job security for accountants, tax attorneys and others are. Awesome!

[codyk]

People always complain about "big government" being ineffective, so they put all their faith into private businesses. What they don't realize is that private companies pay for the government to make ineffective policies through lobbying.

[DonOmarRamiro]

2:44... ALEXA AINT NO SNITCH, LADY.!!! 😂😂😂

[juandoe]

"The system is rigged against its citizens" - Trump...I guess even a broken clock is right twice a day.

[paisan]

Like Cosmo Kramer once said: “it’s a write off for them. They just write it off!”

[brandonbowden]

Flat tax has been talked about for many years but there is no constituency for it. No lobbyists throwing campaign money around.

[Dashawn.B]

Tax avoidance is legal. Tax evasion is illegal. Big difference.

[joeyheller]

The big corporations don’t pay the taxes, their employees do.

[jakeave]

Simplify the tax code. These politicians who raise taxes are so excited to spend other people's money and then when businesses make sound and logical financial decisions and their tax projections don't pan out, they categorize it as "lost tax revenue." The government doesn't lose tax revenue; it gets bummed when it can't take as much of other people's money as it wants too.

[notnoternexto]

I’m not even mad with this. Give more money to the government and they will mismanage it and spend $3 for $1 they receive

[Sirach]

I love how everyone acts like given the opportunity they wouldn't pay taxes and keep their extra $10K a year.

[fitzy]

Pretty discrediting to not even mention the concept of historical net operating losses and their legitimate & logical role in offsetting future taxable income. Imagine you started a company, spend 5 years grinding to grow it, losing $1m per year doing so... in year 6 you turn a profit of $1m. Should you pay federal income tax on that $1m in year 6? Obviously not. Not until you've offset your historical losses (within the statutory time limit).

[coloradobrad]

2:20 All that savings and they still laid everyone off, did share buy backs, and applied for PPP.

[MariaDeigo]

*Great video. We all strive towards financial stability and a better life. It is easy to achieve this through the right investment, by living frugally and budgeting. I’m glad I learnt early in life to work hard for financial freedom*

[TexasRiverRat]

How about a 15% flat tax for everyone? Individuals, businesses, social security payments, including disability with no deductions for anything, period! Paul Ryan claimed he would simplify the tax code so I'd be able to do it on an index card LOL.