Trump-GOP Law Slashes Amazon’s Tax Bill by 87% as Company Fires 30,000 Workers, Profits Soar
Original article by Jake Johnson republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).
“Congress made a choice: cut assistance for the most vulnerable to double down on a tax code already favoring dominant firms,” said one progressive think tank.
The tax law that congressional Republicans and US President Donald Trump enacted last summer has proved to be a massive boon for Amazon, slashing the corporate behemoth’s 2025 tax bill even as its profits surged and it moved ahead with mass layoffs that have cost 30,000 workers their jobs since October.
Citing a new securities filing, the Wall Street Journal reported Friday that Amazon’s “current US taxes, an accounting measure of taxes incurred last year, declined to $1.2 billion from $9 billion” while the company’s “pretax US profit increased by 44.5%, to $89.5 billion. On a cash basis, the company paid $2.8 billion in federal income taxes last year after paying more than $7 billion in each of the prior two years.”
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The 87% decline in Amazon’s federal tax bill for 2025 was largely attributable to the One Big Beautiful Bill Act’s corporate-friendly depreciation tax breaks.
The new securities filing comes just days after Amazon confirmed it axed 16,000 corporate jobs as part of what’s believed to be a sweeping effort to replace workers with robots and artificial intelligence models in the coming years.
The Roosevelt Institute, a progressive think tank, noted that the tax benefits that Amazon and other giant corporations are raking in “didn’t come free.”
“The same law slashed Medicaid and the [Affordable Care Act] and is now exacerbating our medical debt crisis,” the organization wrote on social media. “Congress made a choice: cut assistance for the most vulnerable to double down on a tax code already favoring dominant firms.”
In a statement on Friday, Amazon—founded by billionaire Jeff Bezos—said its dramatically lower tax bill “reflects… changes by Congress” purportedly aimed at encouraging “greater investment in the American economy, its innovation, and its workers.”
The Institute on Taxation and Economic Policy (ITEP) noted Friday that Amazon is one of four companies that “have now disclosed that they collectively received $51 billion in federal tax breaks in 2025, much of that likely from the so-called One Big Beautiful Bill Act (OBBBA) that was signed into law by Trump over the summer.”
“The annual financial reports recently released by Amazon, Alphabet, Meta, and Tesla disclose that these corporations collectively reported $315 billion in US profits for 2025, and collectively paid just 4.9% of that amount in federal corporate income taxes—with Tesla paying exactly zero,” wrote ITEP’s Matthew Gardner. “That amounts to a collective tax savings of $51 billion last year for these four giant multinational corporations, versus what they would have paid if they paid the full 21% federal corporate income tax rate.”
“ Tax cuts pushed through by the Trump administration last year and in 2017 have made it possible for the fastest-growing companies in the world to pay record-low federal income tax rates on their income,” Gardner added. “The tax avoidance of these four companies alone blew a $51 billion hole in the federal budget last year, and this is likely just the tip of the iceberg.”
Original article by Jake Johnson republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).
