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IPFS News Link • Business/ Commerce

Some clear thinking about Amazon's 'shocking' tax incentives

•, By Simon Black

The company was under intense pressure from the media and politicians who were angered that New York City's local government was giving away too many tax incentives, purportedly worth around $1.5 billion.

(Including the state government, the total tax break was around $2.8 billion.)

People had some ridiculous idea that NYC Mayor Bill de Blasio was going to hand a check for $1.5 billion over to Jeff Bezos, already the richest man in the world.

That's complete nonsense.

The biggest part of the package was a tax credit that would vary based on how much Amazon paid its employees; it was capped at $1.2 billion over ten years.

Let's assume it's the maximum level– that works out to be $120 million per year.

Now, in exchange for that incentive, how much tax would Amazon pay?

There's been a lot of media attention about the fact that Amazon has hardly paid a dime in federal income tax over the past few years.