Trump-GOP Law Cuts Amazon Taxes 87% as Layoffs Rise, Profits Skyrocket
The tax legislation enacted by congressional Republicans and former President Donald Trump has significantly impacted Amazon’s financial landscape. The company has seen a remarkable reduction in its federal tax obligations, leading to an 87% decline in its tax bill for 2025. This change has coincided with a substantial increase in profits and notable layoffs.
Amazon’s Tax Bill and Profit Surge
Recent filings reveal that Amazon’s 2025 tax bill will decrease to approximately $1.2 billion, down from $9 billion. This shift contrasts sharply with a 44.5% increase in the company’s pretax profits, now estimated at $89.5 billion.
Corporate Tax Breaks
The significant reduction in Amazon’s tax liability stems primarily from the One Big Beautiful Bill Act, which introduced favorable depreciation tax breaks for large corporations. Despite these benefits, Amazon has faced criticism due to concurrent layoffs impacting around 30,000 employees since last October.
Job Cuts and Automation
- Amazon confirmed the elimination of 16,000 corporate jobs recently.
- The layoffs are part of a broader initiative to integrate automation and artificial intelligence into operations.
Impact on Social Services
Critics, including the Roosevelt Institute, have highlighted the broader implications of this tax legislation. They argue that the tax benefits afforded to Amazon and similar corporations come at a cost, particularly affecting Medicaid and the Affordable Care Act.
Federal Tax Breaks for Corporations
The Institute on Taxation and Economic Policy (ITEP) noted that Amazon is one of four companies that collectively received $51 billion in federal tax breaks in 2025. This collaborative tax relief has raised concerns about the equity of the tax code and its impacts on the federal budget.
Collective Financial Overview
| Company | Reported US Profits ($ Billion) | Federal Corporate Income Taxes Paid (% of Profits) |
|---|---|---|
| Amazon | 89.5 | 1.3 |
| Alphabet | Not Specified | Not Specified |
| Meta | Not Specified | Not Specified |
| Tesla | Not Specified | 0 (zero) |
Conclusion
The tax cuts implemented under Trump have allowed Amazon and other companies to record historic low tax rates, raising significant concerns about fiscal responsibilities. The federal budget faces a $51 billion deficit largely attributed to the tax avoidance strategies of these corporations, highlighting the ongoing debate about tax reform and its implications for American society.
