Institute on Taxation and Economic Policy
Is the Trump Organization’s Sales Tax Avoidance More Aggressive Than Amazon’s?

In recent weeks, President Trump has been raking Amazon over the coals for failing to collect state and local sales taxes on many of the company’s sales—a criticism that has some merit. But a new story first reported by James Kosur at RedStateDisaster, and then picked up today by the Wall Street Journal, provides fascinating insight into the sales tax collection habits of the Trump Organization’s “official retail website,” TrumpStore.com.

Associated Press: Amazon Ignores Trump’s Attacks as It Molds a Business Empire

April 6, 2018

Trump’s charge that Amazon pays “little or no taxes” may have merit. Matthew Gardner, a senior fellow at the left-leaning Institute on Taxation and Economic Policy, said in February that Amazon “has built its business model on tax avoidance.” Amazon reported $5.6 billion of U.S. profits in 2017 “and didn’t pay a dime of federal […]

The Motley Fool: Amazon Is a Master of Tax Avoidance

April 6, 2018

Until the stock’s recent dive, Amazon was the second-most valuable company in the country, worth nearly $800 billion and behind only Apple. However, the company paid no U.S. income taxes on a $5.6 billion in domestic profits last year thanks to a $789 million windfall from the new tax law, according to the Institute on Taxation […]

Matthew Gardner, a senior fellow at the left-leaning Institute on Taxation and Economic Policy, said this appears to be another example of wealthy Americans “gaming” the tax system through special loopholes. “The whole point is to help New Yorkers to avoid a tax hike, and in particular to help wealthy New Yorkers avoid a tax […]

MarketWatch: Trump Is Jealous Amazon Is Better at Avoiding Taxes

April 4, 2018

In 2017, Amazon paid no federal tax on $5.6 billion in U.S. profits, according to an analysis by Matthew Gardner at the Institute on Taxation and Economic Policy. During the previous five years, Amazon paid an effective rate of 11.4% on its profits of $8.2 billion, about a third the statutory rate, Gardner said. “More […]

Washington Post: If Trump Wants to Go After Amazon, He Has Options

April 4, 2018

Despite Trump’s complaints, Amazon started paying sales taxes in 2017 in most states after setting up warehouses across the country to expedite its delivery times. But Amazon does not collect sales taxes on goods sold by third-party vendors, and several big cities in seven states still are not collecting sales taxes at the same level as from local […]

Cities Fail to Disclose Tax Incentives in Bids for Amazon’s HQ2

The Amazon HQ2 project would be the biggest in U.S. history as measured in projected jobs, yet little is known about the incentives cities have offered Amazon to lure its second headquarters. This lack of disclosure prevents public participation in the deal, including raising important questions about whether tax incentives that cities are offering are in the best short- and long-term interest of their residents. This is the main finding of Public Auction, Private Dealings: Will Amazon’s HQ2 Veer to Secrecy Create A Missed Opportunity for Inclusive, Accountable Development?, a Good Jobs First study released today.

Teachers’ Strikes Are Emblematic of Larger Tax Challenges for States

As other researchers as well as journalists have noted, teachers striking or threatening to strike over low wages and overall lack of investment isn’t simply a narrative about schools and public workers’ pay. It is illustrative of a broader conflict over tax laws and how states and local jurisdictions fund critical public services that range from K-12 education, public safety, roads and bridges, health care, parks, to higher education.

New York Times: Silicon Valley Warms to Trump After a Chilly Start

March 30, 2018

But Silicon Valley’s favorite thing about Mr. Trump is almost certainly his new tax code. Many tech companies lobbied for corporate tax reform for years before Mr. Trump signed the new tax bill. Tech giants immediately reaped the benefits. Under the new rules, Apple saved $43.7 billion in taxes, according to the Institute on Taxation […]

New York Times: The Facts Behind Trump’s Tweet on Amazon, Taxes and the Postal Service

March 30, 2018

Mr. Trump has made similar claims before about Amazon’s tax payments, both as president and a private citizen. After he mentioned it in August 2017, The New York Times reported: If Mr. Trump’s point was that Amazon did not collect sales taxes — which are owed by the purchaser and collected by the retailer — […]

New York Times: Still Angry at The Washington Post’s Coverage, Trump Bashes Jeff Bezos’ Amazon

March 30, 2018

There was also some irony in the criticism coming from Trump, who has boasted about his dexterity in avoiding paying taxes. “This is the guy who said that not paying taxes ‘makes me smart,’” said Matt Gardner, senior fellow at the Institute on Taxation and Economic Policy, a nonpartisan research organization. Read more

ABC News: President Trump Attacks Amazon in New Tweet

March 30, 2018

Earlier this week, the Institute on Taxation and Economic Policy, a nonpartisan organization, released a report saying that Amazon has an advantage over brick-and-mortar businesses because Amazon does not collect sales tax from seven states. In other states, the retailer does not charge the full amount of the state sales tax. Carl Davis, the research […]

Politifact: The Facts Behind Trump’s Jabs at Amazon on Taxes, USPS and Lost Retail Jobs

March 30, 2018

Amazon paid $957 million in income tax in 2017, according to regulatory filings. Amazon paid nothing in federal taxes this year thanks to tax credits and, in large part, Trump’s new tax law. But the Institute on Taxation and Economic Policy found that Amazon is either not collecting local taxes or is charging a lower […]

Gizmodo: Trump’s Claim That Amazon Pays No Taxes Is Utter Nonsense

March 30, 2018

Recent financial reports have highlighted the fact that Amazon, which raked in more than $5.6 billion in profits last year, paid $0 in federal income taxes. It accomplished this, according to the Institute on Taxation and Economic Policy, by taking advantage of “various tax credits and tax breaks for executive stock options,” including a one-time […]

Newsweek: Trump, Who Just Gave Amazon a Huge Tax Break, Wants the Company Taxed

March 30, 2018

Noticeably absent from Trump’s critique of the company’s tax payments was its treatment under federal tax law. Amazon, which is currently valued at $673 billion, paid zero federal taxes in 2017 despite earning $5.6 billion in U.S. profits, according to an analysis of Amazon’s latest annual report by the Institute on Taxation and Economic Policy’s […]

Fortune: President Trump Claims Amazon Pays “Little or No Taxes.” Here’s Where He’s Wrong

March 30, 2018

Where Trump is correct: Amazon doesn’t collect taxes on behalf of third-party vendors, and it still may not collect some local taxes, giving it an advantage over some traditional retailers, according to the Institute on Taxation and Economic Policy, a think tank. According to an analysis from the ITEP, the gap between the tax rate […]

The Wrap: Trump Blasts Amazon for Tax Breaks, Using USPS as ‘Delivery Boy’

March 30, 2018

The Seattle-based company avoided paying federal income taxes for 2017, despite posting more than $5.5 billion in income last year, according to a recent analysis from Matthew Gardner of the Institute on Taxation and Economic Policy. Amazon paid $412 million in taxes in 2016. And while the president isn’t a fan of the Amazon-USPS relationship, […]

CNN: Trump v. Amazon, Let’s Set the Record Straight

March 30, 2018

The company has not disclosed how much its customers pay in sales taxes, but it is considerable. Its North American sales came to $106 billion last year, suggesting that it collects billions in sales taxes for various states. The president is correct that Amazon does not always collect city and local sales taxes, according to […]

Bloomberg Law: Trump’s Amazon Tweet Comes at Eventful Time for State-Local Taxes

March 30, 2018

Meanwhile, Amazon may not be paying its share of local sales taxes. A report released March 26 by the left-leaning Institute on Taxation and Economic Policy said Amazon either doesn’t collect and remit local sales tax or is charging a lower sales tax rate than traditional retailers in seven states: Alabama, Alaska, Idaho, Iowa, Mississippi, […]

Dallas Morning News: Texas Was Tougher Than Other States in Dealing with Amazon on Sales Taxes

March 30, 2018

When a Dallas resident or shopper in College Station or Lubbock makes a purchase from Amazon or any other online retailer with a physical presence in Texas such as Wayfair and RH.com, the state gets its 6.25 percent. The cities get their local sales taxes too. In Dallas, that’s an additional 2 percent for a […]

Bond Buyer: Why Cities in Some States Aren’t Getting E-Commerce Taxes from Amazon

March 28, 2018

Local governments in seven states are not getting a share of the sales taxes Amazon is collecting for e-commerce transactions because of gaps in state and local laws, according to a report by the Institute on Taxation and Economic Policy. Amazon began collecting sales tax in all 45 states that have statewide sales taxes as […]

Pacific Standard: Inside the Tax Law’s $25 Billion Oil Company Bonanza

March 27, 2018

More than 50 percent of the tax bill’s benefits will go to the wealthiest 5 percent of Americans, and more than 25 percent to the wealthiest 1 percent, according to the Institute on Taxation and Economic Policy. As Businessweek put it, “President Donald Trump and Republicans sold their $1.5 trillion tax cut as a boon […]

New York Times: As Amazon Steps Up Tax Collections, Some Cities Are Left Out

March 27, 2018

When Amazon agreed last year to begin collecting sales tax in New Mexico, state officials celebrated what they said could be tens of millions of dollars in annual tax revenue. But they aren’t cheering in Albuquerque City Hall. A year after that announcement, New Mexico’s largest city hasn’t seen a dime from Amazon. That’s because […]

Albuquerque Journal: NM cities miss out on Amazon tax payments

March 27, 2018

New Mexico is one of seven states in which Amazon is not collecting local sales taxes, even though the retail giant agreed last year to pay taxes to the state, according to a report released Monday. That’s because New Mexico has tax laws that prevent local collections, said the report by the Institute on Taxation […]

Seattle Times: As Amazon steps up tax collections, some cities are left out

March 27, 2018

Thanks in part to a series of deals with state governments in recent years, Amazon is collecting sales tax in every state that has one. But those deals do not always extend to taxes assessed by local governments. The company still is not collecting sales taxes in dozens of cities, including Philadelphia, Pittsburgh and Cedar […]