I was browsing through my Twitter feed when I came across this tweet that had been retweeted by someone that I follow:
Amazon will pay $0 in federal income taxes on $11.2 billion in profit. https://t.co/Kmfv6TMzJV
— FORTUNE (@FortuneMagazine) February 14, 2019
I then read the article which talks about how Amazon is not going to pay anything in federal taxes for 2018. I then started reading some of the comments about it, and I noticed a trend. It seemed like many people wanted to take this news and attack rich people about it, but I had a completely different takeaway. The article mentions all the loopholes in the tax code that companies like Amazon use to avoid paying as much taxes as possible, and I agree. This has been the case for many years. Most people will use this to say we need to raise taxes on people, but I have another suggestion. Why not simplify the tax code? The reason Amazon can get away from not paying any taxes is because the tax code is too complicated already, so they can hire a massive team of people who spend too much time trying to figure every oversight written into the tax code to figure out how to benefit the company.
I really think we should just make it simple. Imagine telling every business in America that they needed to pay somelike like 10% in federal taxes on their profit? That is it. That’s all the tax code needs to say and 10% of Amazon’s $11.2 billion is now $1.2 billion in taxes. That seems like a simple solution. I don’t understand why this can’t be worked out. Then we don’t have to fret over are they paying enough or too little.
That’s just my random thought after reading Twitter today.