Friday, February 15, 2019

Netflix Made $845 Million In Profits And Paid $0 In Taxes Under New GOP Tax Law

http://labor411.org/411-blog/netflix-made-845-million-in-profits-and-paid-0-in-taxes-under-new-gop-tax-law/?fbclid=IwAR1a8d2RJWo8TLMKucu50Vlhqm92iwe3XC3FGynDWTA99l8CKeiVkMHQeYU

Sahid Fawaz February 7, 2019

Chances are you, and everyone else you know, paid more in taxes than Netflix did thanks to the Republican tax plan.

The Institute on Taxation and Economic Policy reports:

“The popular video streaming service Netflix posted its largest-ever U.S. profit in 2018­­—$845 million—on which it didn’t pay a dime in federal or state income taxes. In fact, the company reported a $22 million federal tax rebate.

•••••

Netflix’s tax avoidance should come as no surprise to those who followed the debate leading up to the passage of the new tax law: A 2017 ITEP report identified Netflix as one of 100 profitable Fortune 500 corporations that paid a 0 percent federal income tax rate in at least one profitable year between 2008 and 2015. In fact, Netflix did it twice, and paid an average tax rate of 13.6 percent over the eight-year period, meaning that the company sheltered more than half of its profits from the 35 percent federal income tax rate in effect at the time.

Leading up to the 2017 tax battle, the hope of reformers was that Congress would take a fiscally responsible approach and weed out loopholes that made Netflix’s tax avoidance possible. Instead, GOP leaders who championed the law and President Trump chose to focus on cutting the corporate tax rate as far as possible—from 35 to 21 percent—while leaving in place special breaks and loopholes.”

For the rest of the article, visit the ITEP here.

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