How Does Amazon Become A Typical "Profitable Enterprise"?

Amazon is the longest river in the world and the largest electricity supplier in the world. "Alibaba" has discovered the largest treasure in history, and is also China's largest electricity supplier platform.

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

In the past two years, although the market value has been over 1 trillion US dollars, founder Bezos is still on the throne of the world's richest man, but Amazon has not paid a penny of federal income tax in the past two years, and has realized the income tax income (at the same time, Alibaba's daily tax payment is as high as more than 100 million RMB).

How did Amazon do it?

It mainly used the rule of "loss after arrival" in the US tax law, and applied this rule to a new height of history.

According to the US tax law, enterprises can use the deficit of the year to offset the annual taxable income in the next 15 years or so. After the implementation of the new tax law, the income tax has been further reduced by 14%, so that Cao Dewang, the king of glass, has gone to the United States to build factories.

For example, Amazon has a net profit of $11 billion 200 million last year, but after enjoying the tax credit and deducting equity compensation, it received a federal tax rebate of $129 million, which has a negative 1% tax rate for Amazon after offset 21% of the corporate tax rate.

Similarly, Amazon's net profit in 2017 was $5 billion 600 million, but after a federal tax rebate of 137 million dollars, the federal tax rate was 2.5%.

That's not enough. Amazon has about $1 billion 500 million in federal tax rebate.

That is to say, even if profits are more than $10 billion a year, Amazon can at least pay a penny of federal tax in the next 10 years.

It is Trump himself who encourages Amazon not to pay taxes.

After Trump came to power, he once crossed Amazon, saying that Bezos has been making use of his Washington Post to promote the business and let Amazon pay less business taxes.

But as the United States is unable to provide evidence that HUAWEI 5G poses a threat to us security, Trump has not provided any evidence to support his criticism.

More ironically, it is Trump himself who encourages Amazon not to pay taxes.

In 2017, in order to encourage American companies to keep their money in the United States and "let the United States grow strong again," Trump announced the new US tax reform act, which lowered the corporate tax rate from 35% to 21%.

Bezos, look, tiger, you are encouraging me to set up factories around the country to reduce federal taxes.

Thus, Amazon, like Trump, responded to Foxconn's own "reputation of the world" and set up various centers throughout the country to find more preferential tax policies.

According to statistics, during the period from 2005 to 2014, Amazon built a storage center across the country, and gained more than $600 million in tax cuts by governments. At the same time, it also received an additional $147 million in tax incentives by establishing data centers across the country.

In fact, there are more than one Amazon tax exemption company: over the past 40 years, half of the lucrative businesses in the United States have no taxes, including federal and state income taxes.

Amazon actually paid about 1000000000 of the state income tax in 2016.

(Amazon) this is the two shopkeeper who escaped from the East.

Terrible Amazon!

Amazon's "cannibalism" on federal taxes can easily remind people of the shuddering piranha in the Amazon River.

Someone has done an experiment: putting a cow into the territory of piranha, in less than a minute, the cow becomes white bone.

In fact, Bezos took the name of the company as Amazon, and saw the beauty of the barbarous expansion of the rainforest.

Only when you arrive in Seattle can you realize how powerful Amazon is.

Of the 500 thousand school-age population in Seattle, 40 thousand are Amazon employees (excluding Amazon's more than 40 thousand robot workers!)

Just like Hangzhou with 10 million permanent residents, 750 thousand of them work for Amazon.

From the electricity market share, Amazon's electricity market in the United States once accounted for 43% of the total sales of the US network, and it dropped to about 25% by 2012, but this is still a result of despair for other competitors.

Since the foundation of the company, it is a company that winds to the sky and can never see the end.

In 1995, Bezos wanted to make the girl who was a writer's dream read the world book. He created the Amazon online bookstore and finally built it into the biggest online bookstore on the blue planet.

Subsequently, Amazon's business scope continued to expand to music products, clothing, home appliances and other fields, becoming the world's first comprehensive e-commerce platform, and deeply affected the Dangdang, Jingdong, Alibaba and other electricity supplier companies in China.

More frightening is that even if the market value exceeded 1 trillion dollars, the speed of Amazon expansion did not slow down.

Before we summed up Amazon's business, we used to classify Amazon as Jingdong's mall business + Taobao's third party service + Google's technological power.

Before 2017, mall and third party services accounted for 80% of the total revenue of Amazon.

But in the past two years, Amazon's massive investment in AWS (Cloud Computing) business has been madly rewarded: in 2017, Amazon's cloud computing business achieved $17 billion 459 million in revenue, more than Alibaba's total revenue a year.

In the fourth quarter of 2018, Amazon AWS used only one quarter to achieve a revenue of 7 billion 300 million US dollars (about 50 billion yuan), which is 4 times of Alibaba's annual cloud computing revenue.

In the traditional non key areas such as new retail and advertising, these years have also contributed more and more profits to Amazon. Amazon's advertising revenue has made Google, which has been monopolizing for many years in this field, more and more confused.

In June 2017, Amazon bought total food at a price of 13 billion 700 million US dollars. The layout of such a big field in the new field made every opponent cold and also made Amazon a public enemy of the retail industry. The retail industry in the United States was officially divided into two camps: businesses outside Amazon and Amazon.

But over the years, Amazon, which has seen rapid revenue growth, has been "not interested" in profitability.

So I went back to the concept mentioned above: Amazon is a typical "profitable enterprise".

Whether from the valuation of all the way up, or the growth rate of the business is higher than the horizon every year, Amazon has the capability of making a big profit, but it is actively not to make profits, but to spend every penny earned for investment and layout.

Moreover, Amazon's investment is not like Tencent thought it is "no dream", but rather tightly around the layout of the electricity supplier, will take every road leading to the electricity supplier after good, forming a frightening dominion in every subdivision area.

Is there any reason why such a company, which is far away from the future, is afraid of it?