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Amazon's Taxes Plummet Despite Record $90 Billion Profits

2/7/2026

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Summary

Story summary

Amazon's U.S. income taxes fell to $1.2 billion in 2025, down from $9 billion, while profits rose to about $90 billion.
The decline is linked to new tax laws allowing immediate deductions for capital investments and research.
Amazon paid $2.75 billion in cash taxes in 2025, down from $7.63 billion in 2024.
The White House says the legislation supports domestic manufacturing by allowing full expensing for new equipment.

History

Historical Context

The Tax Reform Act of 1986, signed by President Ronald Reagan on October 22, aimed to simplify the tax code by lowering the top individual tax rate from 50% to 28% and broadening the tax base. This legislation removed around six million low-income Americans from the tax rolls and significantly impacted corporate tax revenues, contributing to a 30% decline by 1990, influencing modern tax policies.

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Story summary

Amazon's U.S. income taxes fell to $1.2 billion in 2025, down from $9 billion, while profits rose to about $90 billion.
The decline is linked to new tax laws allowing immediate deductions for capital investments and research.
Amazon paid $2.75 billion in cash taxes in 2025, down from $7.63 billion in 2024.
The White House says the legislation supports domestic manufacturing by allowing full expensing for new equipment.

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