Tech Giants Accused of Dodging Nearly $278 Billion in U.S. Taxes Over Ten Years
Amazon, Meta, Alphabet, Netflix, Apple, and Microsoft, collectively known as the “Silicon Six,” are facing allegations of evading almost $278 billion in U.S. corporate income taxes over the last decade, according to a new report by the Fair Tax Foundation (FTF).
The tech firms are said to have paid an average corporate tax rate of just 18.8% over the period, significantly lower than the U.S. statutory tax rate of 29.7% for businesses with similar profit levels.
During this time, these companies collectively generated $11 trillion in revenue and $2.5 trillion in profit, the FTF report reveals.
The report, which was initially covered by The Guardian, suggests that these firms have built tax avoidance strategies into their operational frameworks. Excluding one-time repatriation tax payments related to past tax avoidance practices, the firms’ effective tax rate drops further to 16.1%.
The FTF also argues that the tech giants have inflated their tax contributions by approximately $82 billion by including taxes that are unlikely to be paid.
FTF CEO Paul Monaghan criticized these actions as “aggressive” and accused the companies of wielding economic and political power through significant lobbying efforts.
These revelations come at a time when U.S. tech companies are under intense scrutiny, particularly following high-profile appearances by executives like Jeff Bezos, Tim Cook, and Mark Zuckerberg at Donald Trump’s second presidential inauguration.
The report’s release also coincides with ongoing tax discussions between the U.K. and the U.S., where concessions for American companies are reportedly on the table.
Among the Silicon Six, Netflix had the lowest tax-to-profit ratio at 14.7%, while Microsoft reported the highest at 20.4%. Amazon’s tax practices were criticized for “obvious profit shifting,” though its corporate tax rate of 19.6% was still higher than Meta’s 15.4% and Apple’s 18.4%.
In response, Amazon clarified that its UK tax contributions were fully compliant with UK law and attributed its lower tax rate to significant investment and low margins. Meta, Netflix, and Amazon all stated they follow the tax regulations of every jurisdiction in which they operate, while Alphabet, Microsoft, and Apple declined to comment.
