Amazonian Market Value

"Amazon" is the longest river in the world and the largest e-commerce in the world; Alibaba has discovered the largest treasure in history and the largest e-commerce platform in China.

Amazon and Alibaba have also created the world's greatest tax burden.

In the past two years, although the market value once exceeded $1 trillion and founder Bezos is still on the throne of the world's richest man, Amazon has not paid a penny of federal income tax in the past two years, and has realized income tax revenue (at the same time, Alibaba pays more than 100 million yuan a day)!

How did Amazon do that? Mainly using the "loss offset" rule in the U. S. tax law, and applying this rule to a new height in history!

According to the U.S. tax law, enterprises can offset the annual taxable income after 15 years or so with the loss of that year. After the implementation of the new tax law, the income tax was further reduced by 14%. Cao Dewang, the glass king, went to the United States to build factories.

For example, Amazon earned a net profit of $11.2 billion last year, but after enjoying the U.S. federal tax credit and deducting equity compensation, it received a federal tax rebate of $129 million, which, after offsetting the 21% corporate tax rate, brought Amazon a negative tax rate of 1%.

Similarly, Amazon's net profit in 2017 was $5.6 billion, but after receiving a $137 million federal tax rebate, the federal tax rate was negative 2.5%.

That's not all. Amazon still has about $1.5 billion in federal tax rebates.

That is to say, Amazon will not have to pay a penny of federal tax for the next 10 years at least, even if its profits exceed $10 billion a year.

Trump himself encouraged Amazon not to pay taxes!

After Trump came to power, he had visited Amazon more than once, saying that Bezos had been using his Washington Post newspaper to build momentum for businesses, making Amazon pay a lot less corporate tax.

But just as the United States could not provide evidence that Hua5G posed a threat to U.S. security, Trump did not provide any evidence to support his criticism.

More ironically, it was Trump himself who encouraged Amazon not to pay taxes!

In 2017, in order to encourage American businesses to keep their money in the United States and "make the United States stronger again", Trump announced a new tax reform bill in the United States, reducing the corporate tax rate from 35% to 21%.

Look at Bezos, Tego, you are encouraging me to set up factories everywhere to reduce and exempt federal taxes.

As a result, Amazon, like Foxconn in response to Trump, has used its "world reputation" to build centers around the United States in search of more tax incentives.

According to statistics, between 2005 and 2014, Amazon won more than $600 million in tax cuts from governments across the country by setting up warehouses, and an additional $147 million in tax incentives by setting up data centers across the United States.

In fact, Amazon is not the only U.S. company that has cut taxes this way: in the past 40 years, half of the profitable businesses in the U.S. have not paid taxes, including federal and state income taxes.

Amazon has honestly paid more than 1 billion state income taxes in 2016! (Amazon can't escape from its owner but the second shopkeeper!)

Terrible Amazon!

Amazon's "boneless cannibalism" on federal taxes is reminiscent of the chilling piranha in the Amazon River.

Someone has done an experiment: put a cow in a piranha-eating territory, and within a minute, the cow turns into a white bone! 

In fact, when Bezos named the company Amazon, he saw the beauty of the savage expansion of the rainforest.

Only when one arrives in Seattle can one realize how powerful Amazon is.

Of Seattle's 500,000 age-appropriate population, 40,000 are Amazon employees (excluding Amazon's 40,000 robots!). Like Hangzhou with 10 million permanent residents, 750,000 of them work for Amazon!

From the perspective of e-commerce market share, Amazon once accounted for 43% of the total U.S. network sales in the U.S. market, and only declined to about 25% in 2012, but this is still a disappointing achievement for other competitors.

Since its inception, the company has been winding to the sky, never seeing the end.

In 1995, Bezos set up Amazon Online Bookstore to make the girl who was the author's dream read all the books in the world. Finally, Bezos turned it into the largest online bookstore on the blue planet.

Subsequently, Amazon's business scope continued to expand to music products, clothing, household appliances and other fields, becoming the world's first integrated e-commerce platform, and profoundly affected the domestic Dangdang, Jingdong, Ali and other e-commerce companies.

Even worse, Amazon's expansion is not slowing down at all, even if its market value exceeds $1 trillion.

Before that, we summarized Amazon's business and used to classify Amazon as Jingdong's mall business + Taobao's third-party services + Google's technological capabilities.

Before 2017, malls and third-party services accounted for 80% of Amazon's total revenue.

But in the last two years, Amazon's long-term investment in AWS (cloud computing) business has been rewarded with crazy returns: in 2017, Amazon's cloud computing business generated $17.459 billion in revenue, more than Alibaba's total revenue in one year!

And in the last quarter of 2018, Amazon AWS achieved $7.3 billion in revenue (about 50 billion yuan) in just one quarter, yeah.