How Companies Like Amazon, Nike and FedEx Avoid Taxes
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- เผยแพร่เมื่อ 13 เม.ย. 2022
- 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
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
Might?.. have you been grocery shopping lately? Things are already ugly. The best bet for anyone with a brain is to get in on a passive income stream while you still can, doesn't matter which one it is just get on it and stay committed.
I agree with you and I believe that the secret to financial stability is having the right investment ideas to enable you earn more money, I don't know who agrees with me but either way I recommend either real estate or crypto and stocks.
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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.
The federal government should be made to budget correctly and function on that budget and not be allowed to run a deficit or borrow money.
Don't forget to ask people to donate to you so that you can send it to a charity and use their money as a tax deductible on your own income.
Well as long as you actually need to buy that machine soon no matter what, then sure that is smart.
People don't realize how much time and effort goes into tax strategy. Half of what it means to be a successful business owner is navigating the tax system.
@@andrewjensen8189 it’s not even about that. It would be more beneficial to just buy anything. It doesn’t even need to make sense. If you don’t use it, it goes to government. If you have the space, you buy it. Over a few years, depreciate it at a ridiculous rate and sell it to yourself. Completely legally.
The government should write a report every year on where our taxes go so we know
Are they not all going for use to "build back better" USA? 😉
@@yengsabio5315 NO. to buy weapons for ukraine and other war stuff around the globe. also to give politicians holiday homes and private jets
@@WillockFlame Not to mention all the unemployed parasites who get $3K a year for each kid they have (normally they have 3 or more).
@@WillockFlame as much money as they waste, the money sent to Ukraine for defense against russian agresion is money well spent in my opinion, for one rocket sent Ukrainians could possibly destroy a russian tank. So the few thousands lost on giving them the rockets is easily "given back" to US by destroying theirs enemy machines
@@robertszumiowski589 some Americans are naïve to think we don't need anyone else. How much stuff do we export and import?? Plus if unchecked Russia could go after Europe.
"Don't hate the player, hate the game."
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.
Very well said 👌
Well said who feels it knows it
Capitalism makes, socialism takes. Taxation is theft.
@Robert Price, so how much money do you earn a year?
If companies were transparent, and actually gave money like yours did to the community, schools, etc, it would take the strain off the government and other tax payers. It’s what we need
The more archaic, complicated and subjective the laws are the more job security for accountants, tax attorneys and others are. Awesome!
To me it's the equivalent of how the Catholic Church use to keep everything in Latin where only the preacher could tell people how to get salvation.
@@kevincassil1973 it's to capitalize knowledge. similar to religions. look scientology. we think of it as crazy, but to an athiest, it's just as crazy as christianity
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.
ITS Called a (TOTALITARIAN GOVERNMENT) that's what we have, sadly.
PRIVATE OWNERSHIP, COMPLETE GOVERNMENT CONTROLLED.
@mgtowkremlin Yeah that's against the UNITED STATES OF AMERICA CONSTITUTION but unfortunately people don't know what is really going on.
We have been conditioned to believe we're all "millionaires" in the making if we only work hard enough, and if we're not there yet, we ain't working hard enough....60-70 hrs a week.... NOT ENOUGH......as Elon Musk infamously claims he works 80 hrs a week, or more.. his subliminal message is that you must work even harder for your corporate Lords so you can have a shot at making it in America by collectively slaving our lives away to generate billions of profits for our master's from which we should be thankful for exploiting us with low wages, small to no benefits, union busting campaigns to keep us peasants where we belong. We are not created equal when we don't have the money to bribe our government through lobbying unlike our corporate masters, effectively becoming the ruling class, the owners of our government and our lives. Literally an elite oligarchy that rules America.INC which is every major industry in this country and beyond through globalization. We have been brainwashed into thinking that basic, progressive human rights, pro-working class policies for a better quality of life is Un-American. One is immediately labeled as socialist or communist for wanting a fair, transparent economic system, for wanting true representation in our government for the benefit of us constituents who put these 'public servants 'In power, instead they prostitute themselves to their higher bidding corporate donors. Our political system is beyond repair, it needs to be completely overhauled if we want to remain a functioning society, as we are already in a steep moral, financial, and spiritual decline in the US.
@@axelband1770 I AGREE WE NEED CHANGE AND THE CONSTITUTION GIVES THE POWER TO THE PEOPLE TO QUESTION THE GOVERNMENTS DIRECTION AND DEMAND A CHANGES. THE SAD REALITY IS MOST PEOPLE DON'T EVEN KNOW WHAT THE CONSTITUTION IS AND THATS WHERE GOVERNMENT SUCCEEDS, WHEN PEOPLE ARE CLUELESS THAN YOU CAN LIE TO THEM AND KEEP THEM IGNORANT.
The big corporations don’t pay the taxes, their employees do.
Yup they pay it for them
😂😂😂 is that what you got from a 12 m long lip???
Like Cosmo Kramer once said: “it’s a write off for them. They just write it off!”
Flat tax has been talked about for many years but there is no constituency for it. No lobbyists throwing campaign money around.
I love how everyone acts like given the opportunity they wouldn't pay taxes and keep their extra $10K a year.
Exactly.
unless you’re a selfish narcissist, i don’t see why you wouldn’t pay your fair share of taxes that give back to the community
Okay and? Just because you think some people might do something if given the chance doesn't make it right or mean these companies should be let to run free.
The problem is the working class Americans have to carry the burden on their backs. I get a yearly $2,000 bonus from my job and I get taxed 40% of that money. Far right policies limit the government, but makes corporations our new superpowers.
"I like your Christ, I do not like your Christians. Your Christians are so unlike your Christ."
A broken system, not just unfair.
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.
If every person/entity paid just 5% we could pay off our debt and have a surplus of funds. We need to get rid of all tax breaks, credits, loop holes, etc. and just implement a flat tax.
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People make investing seem so much harder than it has to be, dollar cost averaging into a low cost S&P 500 fund and basic bond fund is very simple. If that's too hard they make target date funds.
I like to make life hard for myself, so I invest not only in SP1500 and NASDAQ indexes I also use individual stocks, industry specific indexes, crypto trusts, and employ leverage.... But that's because I'm an f'ing nerd.
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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).
Correct me if I am wrong, but the scenario you put above makes sense for new, starting companies. The video focuses on established, multimillion corporations only.
@@pirannha fundamental accounting principles do not and should not discriminate based on who’s been around longer or who’s got a bigger balance sheet.
If a large multinational company cannot write off research and development just bc they’ve made some profits in the past, they would be less incentivized to innovate. If Amazon generates $1bn in losses bc they invested heavily in technology or their supply chain (which one could argue is a net positive contribution to the economy), and you tell them “well, but you were profitable in the past, so you need to pay income tax despite your book loss…” that would be bonkers. Completely backwards / nonsensical. Would have devastating implications on companies trying to grow.
@@fitzy1093 if that’s the case, the regular non business owning American should also be able to write off bills. However that’s not how it works
@@junior1497 not how it works? yes, tax rules are rightfully different for individuals vs. corporations. However, there's a long list of write offs and credits that individuals may be eligible for to reduce their taxable income (e.g. child tax credit, any interest expense on loans, retirement contributions, charitable donations, gambling losses, etc.). Tell me again how it works?
@@fitzy1093 crazy how a corporation can write off a jet, but Im forced to have kids, get a loan (drown in debt), or gamble to get them huh. Rightfully different hahahahaha please
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
I’ve always heard that too. Since the tax payer flips the bill it is easy for the government to not be efficient with what they have. Just raise more taxes to cover that.
Cuz the rich people write the laws and make the government dysfunctional so people like you say "gubbermint sux"
And usually same people who ask for more and more from government. So much hypocrisy. Considering how many demands made by so many experts. I still trust the government more.
@@douglasbrittain7018 Raise taxes? That's sooo basic. You'd make all the plebs mad at you. Just inflate the currency and take out large amounts of debt in their grandchildren's name.
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it's all about finding the right moment to take advantage of and generate colossal ROI which is why you need to do your research or get an advisor.
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.
Because no matter what you do, some one will claim unfair burden on poor.
There are only two things I agree with Milton Friedman about... And they're both about positive ways of structuring the tax code. Firstly a land value tax, which taxes the ground value of a property, the second is a negative income tax, that creates a progressive tax code without a poverty trap.
"The system is rigged against its citizens" - Trump...I guess even a broken clock is right twice a day.
Lol that’s funny he got a town named after him for all his hard work
Funny, since when a businessman cares about the people, let alone his low wage workers.
thats more times than a working clock, as it is not possible to perfectly allign it with the real time.
If Amazon doesn't pay taxes then why the hell they charge me taxes on products I buy from them?
Lol 😉
Lol, first off the government doesn't deserve the money we work hard to pay. also, they do give that money to the government, that's not what that BS corporate taxes mean, it's a different thing
Those are state sales taxes.
2:20 All that savings and they still laid everyone off, did share buy backs, and applied for PPP.
Beefing up the IRS means auditing the poor at a greater rate due to the VERY low cost of audits via mail.
No it doesn't.... The IRS does not audit each tax bracket equally. I believe the lowest tax bracket audit rate is something around 1-2%. The top bracket is around 10-15% audit rate (I think), so the government could simply increase the rate of audit for upper-brackets, while leaving the lower brackets the same.
Exactly. Regulators always go shark hunting with a net and don't care who gets caught in it. They never catch the shark.
👆bullspit
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In my opinion, venturing into a good investment, is not just a strategy for generating passive income but a profitable saving method for future expenses. Those who fail to make the right decisions early in life end up regretting. Nevertheless, investing can be difficult and risky doing it solely. For this reason , I advise on seeking help from professionals(financial advisor). It’s not just watching videos and reading investment book but the challenge is using it well.
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Having a good financial planner is like having a mentor . I was loosing my money trying to invest on my own but it was different with *Donald Nathan Scott* . He has played a great role in improving my finances. Long before now, I relied solely on my work and salary. Right now, I have a way of making much money and without stress so I quit working for others . Honestly , investing isn’t a choice anymore but a *MUST* for anyone who wish to gain access to a good and an independent life.
I guarantee if you close those loopholes, the only businesses that will get hurt will be the small businesses. The big businesses pay their lawyers a lot of money to find new ways to avoid taxes.
No they pay lobbyists to bribe governement officials to make legistlature go their way years ahead of time. The American Way
@@chesterogilvie1393 Well that too.
They also pay lobbyist to poke holes into the law. Not only that, they even get the government to subsidize them and protect them from competition.
Then they would've closed the loopholes in the wrong way. These big corporations need to pay their dues when it's due and the full amount just like 90 percent of Americans. They use the same roads, power, and water we all use and pay for, why do they get a break? There is no excuse, it's corruption.
Because our government representatives allow it.
@Tah BOO Far, far cheaper. They roll over for pennies.
Be more specific which representatives allow it. I remember trolls crying over AOC dress "Tax The Rich"
@@mistervo8185 You have TH-cam. You must have access to Google, too... Right? Look it up and post it here instead of griping.
We want how CNBC avoid taxes
How
So, the exact same video again?
Employment tax, payroll tax, healthcare, matching 401k, impact city fees, positive local property values, small biz commerce
Exactly. Not to mention all the employee taxes that they pay like matching social security and paying unemployment taxes, Medicare, workman’s comp. The property taxes they pay yearly on their existing equipment. That stuff adds up quickly
This is good. Thank you.
The Supreme Court has already famously said, no one is obligated to pay more taxes than is legally due.
That's not the point of this article.
@@WildhareXXX Are you really crying over $8.5 B? Don't you think more efficient tax spending might take care of that a lot quicker? I mean we have the largest military budget in the world, $728.5B in 2022, I don't think we could get by on $720B? The whole system is effed.
@@WanderingExistence The IRS pays out $10B per year in Fraudulent tax filings. They know it, and will do NOTHING about it. Just one example is they sent 3100 refund checks to one address in Detroit several years ago. How can you not figure that out?
The government has to convince & persuade the idea that taxes are a net positive for every persons and corporations in the country. Many people see the government as a net negative producers thus we all try to avoid or pay the minimum amount in taxes, even if it means suffering a loss.
The gov't need to be more transparent about how and where the taxes are being used. Then companies and individuals will see paying taxes as a civil duty. But one of the main recurring issues I have witnessed is that elected political officials view their positions as a privilege rather than a position of civil service for the people.
Budgets are publicly available, I used to have this same “taxes have to benefit me” mentality too until I moved to the middle of nowhere and had to pave mile long road to give my property access to the main road into town and learned how much that cost. The other net positive is not having as many homeless mentally ill and senior citizen that usually drive folks from bigger cities.
It always makes me laugh when folks want transparency from the government so companies “have a reason” to pay taxes, yet because of the lack of transparency in the corporate world we end up with things like Enron, and Theranos, but transparency for thee not for me lol.
I give it a decade or two and we’ll be back at fixing senior citizen homelessness that social security for a moment managed to put behind us.
@@dedederp2693 unfortunately that is one of the problems of taxes. The service that you get isn't necessarily equal to the amount of money that you paid.
@@dedederp2693 i shouldnt pay to pave your road
The government sucks the life out of everything. High taxes, out of control spending, and over regulation of every aspect of the people’s lives.
Big government needs to go on a crash diet and get boiled down to the bare necessities.
@@ling636 transportation is a public good tho
More companies should do that. ❤️ Less tax for the government to waste. 😍
like joe biden pulling out and leaving billions worth of weapons for them to keep
It is funny how people think that by not paying taxes corporations are taking money from them
... As if that money wasn't going to be spent on the military and corporate subsidies. They actually believe the government works for them!! 😆😂🤣
@@WanderingExistence how biden is sending either 3 billion or 83 billion dollars to ukraine. that’s american citizens tax money
People like you shouldn't be allowed to vote.... it's clear you have no idea how politics or taxes work. The government isn't clumsy, it's corrupt. Its owned by these same corrupt corporations who don't pay their taxes because they own the politicians. Taxes are not bad. Where our taxes are being used now is the problem
@WanderingExistence lmao that's because those same corporations own the politicians who say where our taxes are spent! Take money out of politicians. Get politicians who work for the PEOPLE not large donors, and you will see improvement across the board in this country. Greed is the problem. Full stop
" perfectly legal " by david cay johnson a good read about the tax system . these corporations couldn't exist without the support of the nanny state .
Thats why they travel by private jets and deduct the cost as an expense.
@Ed MacLane Uh, yeah, we get that.... That's why he was saying they use the company dime to pay for a more extravagant lifestyle and then are able to write the costs off. 🤦 You didn't say anything new.
I don't understand America, government create tax exemptions to stimulate businesses and the corporations do exactly that then why is it news that corporations 'avoid' taxes?. Weren't they supposed to do exactly that?
I think what they're getting at is once past a certain point they can afford to do both at the same time.
If what I have read over the years about lobbying in Washington is true good luck with getting our elected officials to close any loopholes to these corporations. And if they actually close one loophole it’s a good bet they will open at least one more loophole.
I used to wonder which industry, energy, financial, or healthcare/ pharmaceutical ran Washington. As the years have gone by it seems they all do.
The laws allow businesses to do write offs, not skip out on taxes. Companies pay taxes upfront when they pay for goods and services, and then write them off as expenses when they file tax returns each year. The more money they save the more they can reinvest in their business, i.e. research and development, new hires, community donations. ALL business, big and small do this. Media critics are trying to make big business look like the bad guy and blame for the poor man's troubles. Trust me, no one skips out on taxes when it comes to Uncle Sam.
What about American businesses that operates and pay foreign taxes. Apple and cruise ships?... There are tax laws for big businesses, businesses, and the average person..... The average person will never be able to reinvest in themselves.
Most companies spend less than 15% on average for r&d and less than 3% on community donations.
And there are several fields where you get government funding for research. Not loans, just free money from the tax payer.
@@brokeduece1691 You have a solution to taxing money earned overseas? The government logically only taxes on money that is repatriated. Imagine you thinking someone should convert their foreign reserve into USD to repatriate just to pay tax.
How about you guys do thaat, so we can get rid of US conglo presence in Asia, i'd be happy.
@@mika274 Yes, percentage-wise the numbers are low in those areas. Consumers really don't care. As long as they get their goods and services...that's the trade off. We won't question, just keep us happy, big macs and video games.
You clearly are completely naive to the relationship between politicians who make 400k a year and big businesses… you realize the elite write their own tax laws right? They ARE Uncle Sam lol.
there is definitely a frame of reference at play when you state it costs the government XX$ that companies obey the law... Definitely there are problems with how corporate taxes work with giant companies but need to try harder to have a neutral frame of reference. if they are obeying the law the government did not lose any money.. the government got paid what they are legally supposed to be paid. Changing the laws and fairness is a discussion but please avoid slanted framing.
Good, now the government can't waste the money. Reduce government, don't increase taxes.
These companies also give to senators and politicians
Exactly. Big corporations donate millions in campaign funds to politicians who will serve there interests like going against a $15 minimum wage, universal healthcare, universal childcare, paid leave, free public higher education, clean energy, gun safety, expanding voting rights, expanding civil rights, etc.
Well, what could we do about this?
I'm sorry but I just absolutely love it when news channels point out the problem without telling us how to solve it.
Good. They don’t pass the expense onto us customers.
Theoretically all profits should go to the shareholders and they should be the ones paying the taxes.
well that how it work, for REITs, majority of the profit require to be split among teh shareholders, and those money are tax as income tax at the personal levels. so if u have lower income, u dont get tax as much. if u have high income u get tax to death. majority of american are in teh 10 to 20% tax bracket so if the government tax it at teh personal levels, they dotn get much tax, so they want to tax it at teh corperate level at a flate rate, so all american low income or high income pay the same rate. for regular corperate the profit are distribute to teh share holders. share holders are all just ur regular american as well. the millionair ans billionair are few in number while teh mass is high in numbers and the masses are teh majority share holders. if they tax these at the personal level base on share holders income, most of us will fall at the 0% or 10% tax bracket. the tax income will be too lower, so teh government use media company like these to trick the masses to make corperate look like an greedy individual who not paying tax and try to tax corperate at the corperate level at a flat 30% rate. they get more money when they tax it as a whole at teh corperate level then tax it individually at the share holders income levels. keep in mind that share holders are ur retire grandpa and grandma who have no income, for them capital gain tax rate is 0% ur regular 9 to 5 workers is at the 10% tax rate for capital gain tax . it only the upper class who making over 100k a years that at the 15 to 20% capital tax rate.
Shareholders of corporations pay taxes on the profits when they receive dividends
@@yia01 Money that makes money is taxed lower then a person whom trades there work for money. It is upside down.
Just like one restaurant called Panda Express, always ask you, you want me to round your change for helping medical contibution, when you do you help
the medical or hospital , but you help also Panda Express lower their taxes by them paying the fee you contribute to lower their taxes. A very bright idea to lower their taxes with your money contributioneven in cents , how many store they have 10 thousand, how many millions buy on their restaurant, how much money they collect probably $Billion a year.
They still have to report the receipt of that money; C Corps are limited to 10% of their taxable income in allowable charitable deduction. It’s a wash at best. This is why we need better education on how the tax system actually. This is coming from a tax CPA that works on corporate. This is not accurate.
@@dougradtke Accurate or not, that is what thye do, to lower their taxes.
@@roddizon2242 you’re mistaken. It has 0 tax benefit to accept donations and then pass them forward like a conduit.
I thought tax breaks on stock options is an incentive for the employer to give their employees a share of their success. Also, sure some big corporations pay less than 21% but oftentimes the salaries they pay their employees is taxed at the federal level at a rate >21%.
the tax the employees pay comes out of the employee's salaries, it's not a cost to the company, it's a cost to the individual so it's not relevant
So? If $1 is supposed to be taxed when it is earned by the corporation, and then the remaining $ is then supposed to be taxed again upon being paid to the employees, why do you think cutting out one of those 2 steps will not affect anything?
@@andrewjensen8189 that not how it works
@@andrewjensen8189 If $1 is earned as income and the company pays an employee $0.25 to make that dollar then the company is responsible for taxes on the $0.75 (assuming no other expenses exist but expenses also lower the taxable income).
We’re taxed on profit, not revenue.
THATS THE PROBLEM THE COMPANIES SHIFT THERE TAXES ON TO THERE EMPLOYEE
Good for them. Everyone should avoid paying taxes, not only corporations
The less the better
Conservatives : We need more cops.
Also Conservatives: We shouldn’t have taxes to pay for it.
Haha if nobody would pay taxes you will have anarchy and poorness in a split second.
@@redwhite_040 Yeah feller I'm sure you love paying both Reps and Dems to do their "jobs"
@@Felipe-mw8ym Just because the government wastes money doesn't mean we shouldn’t have a government. Should you choose to starve to death because of some food you don’t like?
Why do we need to pay income tax?
Why do corporations need to pay corporate income tax?
I think we need to understand how these systems work/function before criticizing the companies for avoiding/not paying/credited of any forms of taxes.
I certainly don't want to give my hard earned money to the authority/government without knowing how they are spending it which is crucial!
The budget is publically available for anyone to review.
How do you think the wires that get electricity to your house are maintained? What about your sewage? What about the road you drive on? What about the police? Prisons?
The answers to why you pay taxes are literally in front of you everyday.
The ability for you to walk out your door on paved roads and sidewalks for the most part safely and drink clean water would be a clue why lol. This comment is scary because wealthy people really believe this....
@Hrj7 You seriously think your little electricity bill covers the maintenance of the entire national grid? All the dams, nuclear power plants etc all financed by your little electric bill? Come on, think my friend.
Road tax is a TAX, so what's your point?
There are certain things that will NEVER be profitable. It will never be profitable to build a road that goes into a small rural town but it has to be done. It will never be profitable to create a great public transport system but Europe and Japan figured it out through taxes.
@Hrj7 Electric bills combined are still not enough to fund the grid. Not even close.
You are right, the distribution of taxes in the US in particular is beyond ridiculous. And that is precisely why the US infrastructure is crumbling.
Without taxes, things will only get worse. No single corporation can ever compete with what a government can do. Sure a great company can make good cars and other goods but when it comes to projects than need $150Bn funding with profits being observed after a century if at all, trust me, no company will invest. And that is where governments step in. Taxes are the skeleton and private companies can attach the muscles but the foundation can only be laid by a competent government.
2:44... ALEXA AINT NO SNITCH, LADY.!!! 😂😂😂
2:08 I've never heard someone say "competitive" like that XD
Next time do how churches avoid ax
Righ frfr let's ask Joel Osteen 🤣🤣
Companies do not pay taxes. The cost of taxes are paid for by consumers in the form of higher prices for goods and services.
But let's pretend that companies do pay taxes. Pelosi, Schumer, and even Biden , have spent DECADES in congress, which is where the corporate tax laws were written and approved. So if they have a problem with "tax loopholes" they should not have passed them in the first place, and they have had decades to repeal or change them.
republican gave the rich tax breaks while they had control of all 3 houses, so when trump said he loves stupid people, he was holding your picture real high.
You know that company’s don’t have any money if there weren’t any consumers?!? So in essens the consumer always pays!
@@firstgopinbredhillbilliesl6100 The only idiot here is you.
The rich get tax breaks because they are literally the only ones paying net taxes. 80 % of americans pay no federal taxes when you consider refunds and benefits, so basically welfare. These numbers are from the bureau of labor.
Welfare is more than 70 % of total federal spending, medicare, medicaid, social security, all of these are unsustainable welfare programs, that will collapse on less than 10 years. Why do you think they printed so much money?
Now gtfo of here, you stupid marxist.
@@firstgopinbredhillbilliesl6100 your messiah joe biden been in the gov for 50 years and do nothing but suddenly he had problem with all of this BS foh lmao
@@thdgaming6619 the companies have profit margins that they will definitely keep. As long as a company makes money that had to be paid by someone. The end consumer pays for everything down to the shrink rap of the items they buy.
THIS IS HILARIOUS... WITH ALL THAT IS GOING ON CURRENTLY... *this, this is what they are worried about*
Maybe they should ask a former senator from Delaware who was in congress for 40 years on how those laws were written.....
The problem isn't that these companies aren't paying their "fair share" it's the tax system itself. We should either have a flat percentage for income tax (not a tiered system), regardless of income (the more money you make, the higher dollars of tax you pay) or we eliminate existing payroll and income tax to replace with a universal federal sales tax. So ANY time you make a purchase, taxes are collected and paid to the IRS. Both would eliminate all the nonsense of unfairness and would drastically reduce the cost of collecting tax revenue.
Every corporation pays taxes for everything. look at FEDEX. Every time a gallon of fuel is purchased a tax is paid on the fuel, every time a plane takes off taxes are paid for runway use, every employee is taxed for their income, the employer it taxed to match every employees social security contribution, every raw material or good consumed by the company it taxed, and taxes are paid for every square foot of land the company occupies. Corporations native to America is what pays for the governments wild and uncapped spending. in today's global economy corporations can go anywhere. Dont let politicians chase them away
Yeah, that's why all these companies have headquarters in every European country that has high corporate taxes. They are certainly being "chased away" from sane taxation practices. You realize you idiots are letting them fleece america and stomp out small businesses, right?
And every single one of those expenses paid by the business is passed onto the consumer. THATS why they should pay an income tax. The government isnt going to stop taking income taxes from me, so why should they not pay the same rate as I do?
@@anthonyduke2481 so are you saying that companies will just soak up tax losses and not increase prices if they are forced to pay more in income tax? What if the government just spent their money responsibly and accountability was upheld when they spend us into deficit?
In India they use sec- 35ABA of income tax act 1961 to avoid tax
Great that cnbc is covering this
Specially since everyone else has covered it.
🤔 If that’s the case.. why don’t ALL companies do the same?
Because some companies do right and some don't
Most companies don't have the money to outlast the government in courts.
All companies try to do it. But not all companies have the resources to find loopholes in the tax laws or hire consultants to do it for them. If I had the resources and knowledge to do so, would I? Yeah why not.
Because some companies are mature and not in a growth pattern. Amazon may not pay federal income tax but are and have been deploying money that creates NOL that created jobs and shareholder value. Every employee getting a W-2 pays income tax. Every shareholder who sells the stock realizes a capital gain. Corporate income tax is not the primary means any government should acquiring the majority of tax revenue.
I'm 100% all for loopholes and sticking it to the government. You guys failed to mention that before 2017, companies would get double taxed on their profits. Once to ship thr product out of the country, then again once you bring the profits in.
This perspective is pretty stupid considering that it favors the elite and probably not you.... Lol, what a rube.
I tried looking for CNBCs financials but can’t find them… anyone know if this is a public company ? Would love to see how they report their own income ….
They are not public… owned by Comcast
What about all the churches that we have in USA it is a good good good business you need to make a video about church taxes
good for them.
I think for some people, what they really need is a break from working. Possibly overworked, or poor health. Constant economic growth may not be sustainable.
@@LlnusTechTips. well, that is a start.
“Costing the government billions ” 😂
Why doesn’t our politicians get rid of all these tax loop holes? 🤔
Because they can’t
The federal government should get its money by MMT about $2 trillion a year compounding annually at 6%. End fractional reserve lending which is where most money supply increases come from. Then the Federal government wouldn’t have to tax it’s people at all.
What is MMT?
@@rubenmartinez12 modern monetary theory
What is the government going to invest in to yield 6% annually, consistently?
Somebody back, way back in the day said in life there are only two guarantees: taxes and death. You sir were wrong 😀
For individuals that is the case. Not legal entities.
Taxes is one one thing, paying taxes is another thing. So the qoute isnt wrong. 😀
As one presidential aspirant once said, corporations are people too my friend,
Except of course when it comes to tax avoidance.
They are corporate persons... Which means they can lobby the government for better tax treatment.
How much are the "other taxes"?
The solution is literally sitting there waiting. Have listed corporations filed their tax return using their GAAP number published to shareholders. Company X reported $2 billion in profit? IRA will use that $2 billion as the corporation income and based their tax on $2 billion.
@@netizencapet Ah, I see you don't have much concept about stock market. The moment they try to do that by declaring less profit, their stock price would drop. No board of directors would accept that result. They would only have two choices, either pay up more taxes in order to prop up the stock price and their bonuses, or pay less tax and watch the stock price drop like a stone. It's really that simple. It doesn't matter what accounting tricks being used. IRS simply take the publicly declared profit as the actual taxable income. IF that number is good enough for stockholders and analysts, it's good enough for the IRS.
It's extremely sad that large corporations get away with what they do since most small businesses pay their fair share. A base tax rate should be implemented immediately it's only fair, all businesses should be treated equally and if nothing else small businesses should get a bigger break they work just as hard if not harder and make much less most of the time.
Honestly not paying taxes is good for us the common citizens but in the long run is bad for ourselves. I don’t recommend to skip or “bypass” taxes for our own gain. If you skip or bypass taxes don’t complain about your community roads or any service being bad.
This is exactly why the corporate tax system is ultimately bad for our country.
Bring out the pitchforks.
"beef up the IRS"
yeah, more bureaucracy is the answer, not a simpler unavoidable tax code
This is outrageous!
How could you let companies not pay their taxes?!
It's sickening to see this happen.
Simply outrageous.
How could they do this to these poor politicians?
Now they won't be able to afford their 3rd million dollar mansion. Simply sad.
Blame lobbyists.
5:06 man literally says McDonalds spends money on making hamburgers better 😂😂😂
Alexa didn’t want to get in trouble 🤣🤣🤣🤣
This a great video it shows how blind companies are especially when they don’t want to raise the wages too high. It all has a domino effect because if one or more companies don’t raise there wages the workers of those companies will not have the savings to spend on luxury goods or toys which will affect another company that only sells those items.
A good example would be if let’s say Amazon raised there wages but nobody else did than Amazon would be losing more money since people will stop spending as much money to get gifts or products from there online store;it doesn’t matter if the prices stayed the same it’s about what the consumers can afford to spend.
What? Amazon can keep costs low and pay workers more, while also investing heavily in their delivery network and AWS server business. They do this because they can write off reinvestment AND wages/ compensation.... That's the whole reason why Amazon doesn't pay any corporate tax because they write off all their profit as reinvestment/ labor costs. It also means that they attract higher quality labor by offering more competitive wages. Amazon could become profitable at any time but they choose to grow their business, because that has been their business model since the '90s and what has made them so big.
Actually, these corporations do pay taxes, but they call it “political contributions “ (bribes for those without a high school diploma) and these “taxes “ go to the legislature to keep the program going. 🙄
This piece only discussed one type of federal tax. It was disingenuous at best. There are other and unavoidable taxes too; tariff, payroll, fuel, excise and import. The critical thing to remember about all of this is; corporations _do not_ pay taxes, the customers do that, and if there aren't any customers, there isn't any money for taxes.
CNBC is the BEST.
What’s the difference between Tony Sopprano and the government?
Taxes should be paid on profits earned where they are earned. Simple as that.
In our modern world, profits and where they are earned are complex questions. Unfortunately.
So you think a cancer research company that spends 99% of profits on researching cancer, should pay the same tax rate as an oil company whose profits goes into the pockets of its shareholders?
@@andrewjensen8189 If they are truly spending 99% of profits on research they should apply for non-profit status and pay no tax.
If they are avoiding taxes...why at the end of the month is amazon now charging taxes/gas/delivery increased fees?
they dont avoid those kind of taxes. They ofc pay employee tax, and others. Just not federal
If tax avoidance is such a known issue in the USA (and other countries, of course), why is there not a significant movement towards closing or minimizing these loopholes? That's some food for thought...
Because the wealthy are the ones that write these “loopholes” in the first place. In their minds, they aren’t breaking the law when they are the ones writing them in the first place. Companies and high net worth individuals lobby and influence the gov’t all the time to swing things their way, thus making themselves even more powerful.
Because these tax laws are made by politicians, and the vast majority of said politicians have close ties with rich businessmen or coporations and/or they actively participate in big business, and thus directly benefit from these loopholes. And they spin these loopholes as 'necessary' to encourage investments, and somehow the public buys it.
Americans tend to like pure capitalism and consumerism over quality of life.
Because there exists a delicate balance between a tax code that destroys competitiveness and one that is overly generous. Tax individuals and businesses too high, there will be capital flight especially from multinationals who can pivot and move.
Many of these companies for example Nike do not run their company here, they have a business in the US that sells the products, pay the employees etc.
Then there is another company In a tax haven such as cayman islands(Which has 0% cooperate tax)that own the trademark, so the company in America has to pay all the profits to the company in Cayman islands, then Nike do not have to pay tax.
Is very hard to ban companies to use international tax laws
Yes. We have found many ways on this.
Has anyone done any news headline on the amount of jobs these corporations generate and how much taxes are paid to the government from these jobs?
Shhh they don’t report the good things
And by raising the taxes it just gets passed on to the end consumer who will pay that with higher prices.
This is a very hyperbolic segment NOT really based on facts. One of the things they DON'T mention is the number of tax-exempt corporations or nonprofits that pay NO taxes at the state or federal level in income taxes. A lot of the companies they named contribute greatly to America's national security and economic security.
yes, damn nonprofits not paying taxes
In the last 40 years, the ultra wealthy have stolen 40 trillion dollars in wage theft and taxation avoidance. But yeah, you keep chasing the minutiae .
Uniform Tax system can work better in this kind of situation
If the company is not reporting profits it is because it’s reinvesting, donating, growing, creating jobs, and competing for international market share, etc. The money is being spent on the economy. It’s just a matter of who gets to spend it. The corporations or the government. Let me give you a hint, politicians are not businessmen. There’s already rules on what corporations are allowed to deduct from which are stricter than what politicians do with money which is mostly giving it away to other countries. Also corporate executives pay income tax.
Technically, it’s unpatriotic to avoid it. If you love something, you put money into it, keep it up, like keeping a nice house.
Lol so you love paying both republicans and democrats to do what they do? You think it is patriotic to feed the people who will decide to print money and make your dollars worth less? You are literally paying them to take your money away
You could live the country but hate the government bureaucrats.
@@alicemendes804 not picking parties. They’re criminal. They let corporate america get away with literally murder. But if you want america to be beautiful, industrious, and all around kickass, can’t do it on taxing only the middle class.
@Hrj7 it needs to keep society from imploding. If enough people are without food or basic security, then they have failed and what kind of government will replace it?
@Hrj7 the unregulating is a major problem. And starvation vs, going hungry are different. People in America are lacking food. Kids eat crap cuz of no regulation on sugar,… and yet with the obesity problem others are still hungry. Will taxes stop this? No. But I don’t see mega churches going in and being Jesus like and feeding the poor.
Isn't it really awesome that Amazon NY is unionized 🙂
My Alexa device gave the same answer as in the video. And now Amazon knows I watch your videos.
@2:40 in the video a woman asks Alexa how much tax Amazon should pay. They Alexa on my desk heard the key word and did answer. Said it had to report 30% tax unless it has a double-taxation treaty with the US. Or something like that. Maybe Alexa watched your video.
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These companies spends a lot of money to lawyers, political brokers, donations and sponsorships of political charities.
In place of taxes they put in effort in other areas that ultimately benefit society
Are divideds and buybacks treated as a business expenses and write-offs
Even if they pay dividends and the company doesn’t pay taxes, it doesn’t avoid taxes altogether. If you think about it, the receivers of those dividends have to pay taxes, so someone, somewhere, will pay taxes on that money unless the dividends are paid to a person who owns the stock in a Roth IRA
@@bgroks1 good point
Good for them! I hate paying taxes when I see the streets and public places in my city (Miami) are crap. Gov has failed to guarantee a safe place to live. Also, thousands of people getting money from our taxes for doing nothing and/or having kids like rabbits.
They pay employees and almost half of that goes to taxes. Let’s see politicians use our tax dollars more efficiently instead.
Not true
And be more efficient with the money they have instead of a lot of unnecessary spending
I am sensing that they're trying to bash Corporations and business. Tax strategy is very important for business and understanding how to navigation the tax waters is equally important. Not sure why people are complaining when they hear about a company not paying any tax. As long as the company is being honest about their books it nobody's business.
People complain because they know corporations are screwing them over but they don't really understand how- honestly I think people complain too much about a loss of 8.5 billion dollars when the government spends that in half a day. But I think it's also important to consider that while both corporations and individuals can take deductions the scope of deductions is different. For example if a company spends money on food for the employees they can write that off as an expense of keeping the business running... For me, I don't get it right off all my food expenses to keep me running.
Part of the reason for this is that we want the jobs in America and not offshore. We must tax our corporations without driving the production overseas where the environmental standards are nonexistent.
we shouldn't tax the corporations anything. we tax enough at the individual level. most companies don't pay tax because they bonus out so much... well, those bonuses are taxed on the executive's individual return. sometimes at an even higher tax rate than the corporate rate.
@@jgons I am not sure that you are wrong. You get from my comment that I understand your point.
@@jamesheadings8956 yeah. i just think people forget all the other taxes they contribute to with payroll withholdings, fuel & road taxes, collecting sales tax, commercial activity taxes and many many more for all levels of government. they contribute plenty without an actual federal tax. i see some people say all corporations should pay 10% of every dollar that comes in. Well, lots of sectors don't even have 10% margins... so when you hear stuff like that you know they shouldn't really be a part of the discussion.