Analysts accuse big U.S. tech firms of paying almost $278 billion less corporate income tax in the past decade compared with the statutory rate for U.S. companies making the same profits.
The Guardian reveals Amazon, Meta, Alphabet, Netflix, Apple and Microsoft —the “Silicon Six”— generated a combined $11 trillion in revenue and $2.5 trillion in profits over the last decade. But they paid an average of just 18.8% in combined national and federal corporation taxes, compared with an average 29.7% in the U.S., according to the Fair Tax Foundation (FTF).
“Our analysis would indicate that tax avoidance continues to be hardwired into corporate structures,” Fair Tax Foundation Chief Executive Paul Monaghan told The Guardian. “The Silicon Six’s corporate income tax contributions are, in percentage terms, way below what sectors such as banking and energy are paying in many parts of the world.”
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Analysis at FTF also discovered the companies had inflated their stated tax payments by $82 billion over the same period by including contingencies for tax they did not expect to pay. Monaghan added that these companies have “enormous political influence as well as economic power,” in that they all spend hundreds of millions of dollars on lobbying government officials on key tax-writing committees to have more say in how the tax system works.
The Guardian reports that Netflix had the lowest rate of tax actually paid compared to profit at 14.7%, while Microsoft paid 20.4%. Amazon, meanwhile, had the worst tax conduct based on factors such as the total amount of tax paid, much if it through “obvious profit shifting” such as booking a sizeable portion of its U.K. income in low-tax Luxembourg. But Amazon’s corporate tax rate was still 19.6% ahead of Netflix and Meta (15.4%) and Apple (18.4%).
The report comes as leaders of many of these same tech companies’ influence genuflect to President Donald Trump. Amazon’s Jeff Bezos, Apple’s Tim Cook and Meta’s Mark Zuckerberg all attended Donald Trump’s second inauguration.
Read the full Guardian story at this link.
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