|WSJ article on taxation and a rebuttal to Democrats bickering about Amazon paying taxes, points out that |
some key offsets are the $160 billion of investments in their warehouses, cloud computing, wind and solar investments, and employee gains when options were exercised, not the earlier estimate of issuance cost.
What else is lowering Amazon’s tax rate? When companies give employees restricted stock grants, companies take an expense for financial statement purposes, based on estimated value. The tax deduction isn’t set until compensation vests and employees can take it—and pay personal income taxes on it. If a company awards restricted stock worth $20, it records a $20 expense and assumes it will get a $20 tax deduction. But if the stock price rises and it vests at $35, the company then takes a larger-than-expected tax deduction.