Current Events > Netflix paid 1.1% in federal tax

(+) Yeah! (+)

What do I have to write on my 1040 to pay only 1.1%?

Step one: be worth more than you've ever been or could ever hope to be

netflix fucked the consumer and the government out of money.

Tyranthraxus posted...

What do I have to write on my 1040 to pay only 1.1%?

Lose a ton of money and write it off

except you can't because you aren't a business

Apparently they paid a paltry $81 million in taxes from $10.5 billion in pre tax income in the last 4 years. Even with the Trump tax cuts, I still dont get how they can pay such a negligible percentage even with the explanation provided by the article below:

https://itep.org/netflix-posts-record-profits-federal-tax-rate-of- just-1-percent/#:~:text=Its%20pre%2Dtax%20 U.S.%20income,tax%20profits%20for%20the%20year.

Behind Netflixs consistently low tax rates is an equally consistent explanation for how it got there. The limited tax disclosures Netflix makes each year point to three tax breaks that collectively explain most or all its tax avoidance each year.

• Accelerated depreciation breaks allow companies to write off the costs of investments in equipment more quickly than the equipment wears out and loses value. The most likely outcome is that this rewards companies for making investments they would have made absent any tax break.
• The stock option tax break allows companies to write off stock-option related expenses for tax purposes that go far beyond expenses they report to investors. This effectively subsidizes companies that use stock options to compensate employees, mostly their top executives.
• The research and development (R&D) tax credit is supposed to encourage innovation but probably rewards companies for research they would have conducted in the absence of any tax break. Reasonable people can disagree on whether the United States needs to subsidize (through the tax code or otherwise) any research conducted by Netflix.

Tsk tsk