Warren Tax Aims to Level the Playing Field

Senator/presidential hopeful candidate Elizabeth Warren is pushing for a new corporate tax on profits above $100 million and is targeting Amazon. Should any company pay $0?

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Total Votes : 65

Scroll down to see how people across America voted.

With the 2020 Presidential Election right around the corner, more and more candidates are coming up with new policies in order to gain more public interest for the election. According to ABC, Massachusetts Senator, Elizabeth Warren, has proposed a new corporate tax to be imposed upon larger more successful companies in order to ‘level’ the playing field for smaller businesses. This tax is aimed at large companies such as Amazon and Occidental Petroleum who reportedly did not pay any Federal Income taxes the previous year.

Warren’s proposed tax would not only target Amazon and Occidental; The tax also aims to go for companies that make over $100 million in profits. Warren wrote about her proposal for Medium, and went into depth about how the tax would work on the big business companies. She wrote, “…For every dollar of profit above $100 million, the corporation will pay a 7 [percent] tax,” and goes on to state that Amazon would have to pay about $698 million in taxes and Occidental would also have to pay about $280 million in taxes.

According to Amazon’s press release for 2018, the company earned about $72.4 billion in sales during the year’s fourth quarter. This was a 20 percent increase from the 2017 fourth quarter, and due to this, the company also reported $232.9 billion in sales for the entire year. In terms of profits, the company made $11.2 billion in 2018 which is twice as much as the $5.6 billion they gained in 2017.

In the Occidental Petroleum press release for their 2018 year, the company reported a $4.1 billion net income (profit) over the year. They also reported making $922 million in core income for the fourth quarter.

Many politicians have noticed this increase in profit while also bringing up the fact that their net federal income tax turned out to be zero dollars. Vermont Senator and presidential candidate, Bernie Sanders, has been very vocal about his distaste towards Amazon and their zero percent corporate tax. President Donald Trump has also voiced his problems with the company not paying any taxes and took to Twitter to condemn them.

In his tweet, Trump states, “Unlike others, they pay little or no taxes to state & local governments… and are putting many thousands of retailers out of business!” In regards to Trump’s last statement, Amazon’s retail success is putting other retailers in danger of losing their business. According to Investopedia, some of these companies include Barnes & Noble, Macy’s, and Foot Locker to name a few.

Amazon has been reported as the top book retailer in the world due to the Amazon Kindle sales and has caused the Barnes & Noble stock to drop by about 80 percent. For Macy’s, they seem to be in constant competition with Amazon, which sees the latter come out on top almost all the time. The company did have a good first quarter for 2018, 3.6 percent sales increase according to Investopedia, but have since had their stock fall by about 45 percent.

Warren’s tax seems to aim at limiting Amazon and other big successful companies from gaining too much economic control without any taxes to pay back. The proposal of this tax seems to be garnering some serious consideration after much of the public, and many politicians including the president, have condemned the company for paying nothing.

Here’s how people on the Zip app are weighing in on this all over the country!

Senator/presidential hopeful candidate Elizabeth Warren is pushing for a new corporate tax on profits above $100 million and is targeting Amazon. Should any company pay $0?

45% It’s legal
55% It’s unfair
48% It’s legal
52% It’s unfair
36% It’s legal
64% It’s unfair

It’s legal

It’s unfair

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