Hacker News new | past | comments | ask | show | jobs | submit login

They don't pay zero taxes. They pay zero taxes (or close to) in some countries. Understandably those countries aren't happy[1].

However, I can assure you that if you start a company in the UK that turns a profit, you will pay corporation tax at a rate substantially above 0%.

[1] Worth pointing out that this isn't the only way governments earn tax money from companies. The less direct route is through salaries. Amazon makes sales and, out of the money it earns, pays staff, these staff in turn pay income tax, which increases the tax take of the country in which they live. For tech companies with higher earning staff (granted Amazon may not be a great example because they have plenty of staff in lower-paying roles, e.g., in warehousing), in the UK those staff are likely to pay higher rate tax. I'm not saying this makes it OK for Amazon to pay no corporation tax: what I'm saying is that the tax benefit to a country flows via multiple streams. At the moment it seems like somebody has dammed one of those streams, but the point still stands.




Until you become big enough to trade and play countries off against each other. Multinationals have, for the most part, been placed above the nation and government. They get to pick and choose.


Amazon does not pay taxes from salaries. The employees pay taxes from salaries. Amazon, if you moved to Mars, shouldn't reduce your salary because you're not paying tax to the UK.


> Amazon does not pay taxes from salaries.

for the one millionth time, it doesn't actually matter whether you pay income tax or your employer pays it for you. [0]

if you want to be precise, amazon doesn't pay income tax, but it does have to pay payroll taxes for each employee, which is proportional to the income they are paid.

> Amazon, if you moved to Mars, shouldn't reduce your salary because you're not paying tax to the UK.

amazon changes payscales based on local COL at all if it's offices. if enough employees lived in a zero income tax environment to matter, amazon (or any other large company) would absolutely shift salaries down.

[0] https://en.wikipedia.org/wiki/Tax_incidence


> Amazon does not pay taxes from salaries. The employees pay taxes from salaries.

Yes. If you read what I wrote that is actually what I said.

The larger point is that the government receives tax from Amazon's employees so that, even in the absence of corporation tax, there is a benefit to the country of Amazon operating there. Not to mention that providing jobs is in itself a good thing.

Again, to be clear, I'm not saying it's right or fair that they pay little corporation tax.




Join us for AI Startup School this June 16-17 in San Francisco!

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: