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R U Using AmazonSmile?

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alex_m1
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CEO
Re: Billions and billions
alex_m1   8/18/2014 6:11:35 PM
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@max:> Amazon still hasn't actually made a profit -- they have a huge turnover but they spend it as soon as they get it...

It's not exactly that. Amazon has benefited greatly from the online tax loophole. While it has benefited cusomers with lower prices - it's still surely not according to the spirit of the law. And there also use various tax shelters to prevent from paying taxes - again using a loophole.

So some analysis of the business claims that without all those tax benefits , there's no big cost/efficiency advantage for amazon over regular retailers who do ecomerce.

Now that those loopholes are closing, their situation is a bit more difficult - higher prices than competitiors  and amazon is losing money.It would be interesting to see how amazon navigates itself , especially with competition over walmart.

Max The Magnificent
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Re: Billions and billions
Max The Magnificent   8/18/2014 10:26:28 AM
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@seantellis: UK turnover in 2011-12 was £3.3bn (about $5bn) but they paid zero tax.

I think that may be because -- as yet -- Amazon still hasn't actually made a profit -- they have a huge turnover but they spend it as soon as they get it...

Max The Magnificent
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Re: Billions and billions
Max The Magnificent   8/18/2014 10:24:17 AM
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@alex_m1: But you as a part of the great monopoly of eetimes...

Moi? Mais non!

seantellis
User Rank
Rookie
Re: Billions and billions
seantellis   8/18/2014 5:21:33 AM
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I'm afraid that I think smile.amazon.com is a bit of a smokescreen.

While the amounts above are quite large, they are small compared to the amount of money that Amazon *should* be paying in corporate tax.

According to Wikipedia, corporate tax in the US is between 15% and 35% of profits, and 20% of profits in the UK. UK turnover in 2011-12 was £3.3bn (about $5bn) but they paid zero tax.

These tax dollars (or pounds in my case) would be consistently collected, and would go to fund many of the same services that the charitable donations are being used for, and more.

alex_m1
User Rank
CEO
Re: Billions and billions
alex_m1   8/17/2014 5:55:52 PM
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@Max, personally i would prefer that we would not encourage a monopolist. But you as a part of the great monopoly of eetimes must view it differently:)

Max The Magnificent
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Re: Billions and billions
Max The Magnificent   8/15/2014 1:35:46 PM
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@zeeglen: Only an accountant could come up with this sort of accuracy.

When the revolution comes...

zeeglen
User Rank
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Re: Billions and billions
zeeglen   8/15/2014 1:33:59 PM
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Right, engineers are usually very happy with 1% tolerances. 

Accountants are different.  A well-known taxation authority once had rules (maybe it still does) for paying quarterly estimated taxes.  Basically gaze into your xtal ball and make an estimate of what you will earn by year end, then part of the calculation involves multiplying by a factor with 4 decimal places of significant figures.  Only an accountant could come up with this sort of accuracy.

Of course Amazon does have a smart idea and to 1 significant decimal place.

Max The Magnificent
User Rank
Blogger
Billions and billions
Max The Magnificent   8/15/2014 1:01:42 PM
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When you first see a number like 0.5%, your knee-jerk reaction might be "Well, that's not much," but it all depends on what this 0.5% is of.

Amazon takes in about $65 billion a year, so if everyone used AmazonSmile for all of their purchases, charities would benefit to the tune of $325,000,000 a year, which is not a sum to be sniffed at!

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