Amazon had responded to Joe Biden's tweet about Amazon's tax contributions to the country.

Joe Biden's Tweet

It was reported by an article that Joe Biden stated in a tweet that a large business with billions of profits should be paying more than what teachers and firefighters are paying in taxes. In the tweet, he mentioned Amazon.

Based on an article, Joe Biden had promised to increase the taxes of huge businesses and decrease the taxes of those who are earning not more than $400,000 every year. It means that if he wins the upcoming election, his administration will be putting a focus on decreasing the tax burden on the less privileged sector by not increasing their tax dues. Also, if he becomes that next president of the country, he will be increasing the taxes due to those with large operations and big profits.

Based on an article, Joe Biden's plan to increase tax collections from large companies and the wealthy living in the country can help the U.S. earn $14 trillion in the next ten years.

Amazon's Tweet

According to a tweet by Amazon, the company reacts to Joe Biden's tweet by expressing that Joe Biden's issue may have been about the tax code of the country and not only with the company.

Amazon also expressed in the tweet about the country's tax laws that were designed to help companies contribute to the growth of the U.S. economy. The company expressed its side on how it helps the economy by stating that it employs more or less 500,000 people across the country.

Amazon Pays $0 for Federal Taxes in 2019

In an article, it was revealed that despite reporting $11 billion in profits in 2019, Amazon's tax due for that period was $0. It was even able to receive a tax rebate of $29 million.

Based on the article, possible causes of this result was the combination of the tax cuts that were made in 2017.

There was a time when Amazon was not earning this much profit and it had resulted in carryover losses from the past years. Carryover losses have effects on future tax due to businesses.

Additionally, another possible cause of this outcome is the company's incentives from the government for exhaustively investing in research and development.

Also, the company was reported to have been employing stock-based employee compensation. Stock-based employee compensation is giving ownership stocks in the business to employees as a method of getting their focus in line with the goals of the company's management, according to an article.

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Getting Rebates From The Government

Amazon is not the only company in the history of the United States have shown these tax results. An article reveals that Goldman Sachs, General Motors, and Southwest Airlines had also reported tax advantages similar to Amazon's.