Topic: Amazon Tax

Boycott organizers are targeting Amazon for its $1 million contribution to the presidential inauguration and its pursuit of municipal tax breaks. The "We Ain't Buying It" campaign demands that corporations remain accountable to customers rather than aligning with the administration. Despite the protest, early data indicated record-breaking online holiday spending.

The Hollywood film industry is facing a significant downturn, with production in Los Angeles down nearly 40% over the last two years. Factors include the aftermath of the 2023 actors and writers strikes and the shift of production to states with better tax incentives like New Mexico. Despite the crisis in traditional studios, streaming entities like Apple and Amazon continue to dominate award shows and high-budget content creation.

Senator Elizabeth Warren proposed a wealth tax on fortunes over $50 million, which she claims would affect 75,000 households. In related news, Amazon agreed to a $61.7 million settlement after the FTC found the company withheld tips from Amazon Flex drivers to pay their base wages. Similar practices have been reported at Instacart, leading some to speculate this scandal influenced Jeff Bezos's decision to step down as CEO.

Politicians frequently criticize Amazon for paying zero federal income tax despite billions in profit. This financial outcome is attributed to the company plowing profits back into research and development, which is a deductible cost under U.S. tax law. These investments funded the creation of Alexa, Ring doorbells, and Amazon Web Services, which now powers a significant portion of the internet.

France has implemented a 3% Digital Services Tax (DST) targeting major US technology firms like Google, Facebook, and Amazon. Tech leaders testified that the tax is discriminatory and difficult to calculate due to data tracking requirements. President Trump has threatened to retaliate by placing tariffs on French wine imports.

Andrew Yang's "Freedom Dividend" proposal of $1,000 per month for every adult is scrutinized for its cost, estimated at $150 billion monthly. Yang intends to fund the program through a 10% Value Added Tax (VAT) and claims automation and Amazon are responsible for closing 30% of American malls.

Democratic presidential candidate Andrew Yang appears on Tucker Carlson Tonight to advocate for a Value-Added Tax (VAT) to capture revenue from tech giants like Amazon and Netflix. Yang argues that a VAT is harder to game than corporate income tax and could fund a "Freedom Dividend." The hosts criticize the proposal as a regressive tax on consumers, drawing on their personal experiences living under VAT systems in Europe.

Bernie Sanders criticized Jeff Bezos for his massive wealth accumulation while Amazon employees rely on food stamps. Meanwhile, Seattle's proposed "homeless tax" per employee has angered Amazon and Starbucks, leading to speculation that Amazon will move its operations to a more business-friendly city.

Reports suggest President Trump is considering changing the tax treatment for Amazon, which the hosts link to his frustration with Jeff Bezos's ownership of the Washington Post. They criticize the mainstream media for glossing over this potential use of the IRS as a retaliatory tool. The discussion notes the significant impact such a move could have on Amazon's market valuation.

A local robotics team from Port Townsend, coached by a show producer, has reached the state semifinals held at Amazon's headquarters in Seattle. A GoFundMe campaign titled "Howling Chickens" seeks to fund the trip, with the coach noting that donations are tax-deductible, prompting a humorous callback to the show's earlier discussion on the efficacy of tax-exempt status.

The European Union ordered Amazon to pay $295 million in back taxes to Luxembourg, ruling that the country provided illegal tax benefits over an eight-year period. The hosts compare this to the EU's previous crackdown on Apple in Ireland, characterizing it as a "bait and switch" where countries lure corporations with sweet deals only for the EU to later declare those deals null and void.

France is leading an EU initiative to implement an "equalization tax" targeting the revenue of major digital companies like Amazon, Apple, and Google. The proposal aims to harmonize taxes across the bloc and prevent multinational corporations from using low-tax members like Ireland and Luxembourg to shelter profits. The French are reportedly pushing for a turnover tax set between 2% and 5% of revenue.

Seattle is considering a new income tax on individuals earning over $250,000 to fund affordable housing and homeless services. The proposal has sparked debate among Amazon tech workers regarding fairness and the high cost of living in the South Lake Union neighborhood.

The city of Chicago has implemented a 9% "cloud tax" on electronically delivered amusements and computer leases, affecting services like Netflix, Spotify, and Amazon Web Services. Legal experts suggest the tax may violate the Internet Tax Freedom Act by discriminating against online services.

Senate Bill 336, the Marketplace Fairness Act of 2013, is introduced as a federal effort to mandate the collection of sales tax for online purchases across state lines. The hosts note that major retailers like Walmart and Target support the bill to eliminate the price advantage of online-only competitors. They mock the list of Senate sponsors, including Senators Enzi, Durbin, and Alexander.

Governor Jerry Brown signed a law requiring out-of-state retailers to collect sales tax if they have a physical presence in California, leading Amazon to cancel all affiliate contracts in the state. The hosts discuss the impact on their personal income and the constitutional implications of "taxation without representation" regarding online affiliates.