Netflix Posted Biggest-Ever Profit in 2018 and Paid $0 in Taxes

Google dh8aON
Apr 16 24 Comments

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TOP 24 Comments
  • BluVector sparked
    Someone should do the math on how much tax revenue the govt would lose if these companies didn’t exist
    Apr 16 2
    • Google / Eng
      hurrayy

      Google Eng

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      14 yoe engineer in tech
      hurrayymore
      Also do the analysis on what else these companies can do, if govt forces them to pay the taxes
      Apr 16
    • New / Consultant
      PinkJacket

      New Consultant

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      Google, Techstars, Mozilla
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      PinkJacketmore
      VAT tax them. #AndrewYang style.
      Apr 16
  • Chase zTnH87
    But, Netflix employees paid taxes right??
    Apr 16 6
    • Google dh8aON
      OP
      I rather have the tax come out of corporate coffers than an engineer's TC.
      Apr 16
    • Oracle pzd
      There is no such thing as corporate coffers. If Netflix pays more taxes, employees will simply get less. You can't have your 🍰 and eat it too.
      Apr 16
    • Tableau krxi15
      @Oracle, but Netflix doesn’t pay dividends, so how did the profits go to stockholders exactly?
      Apr 16
    • Oracle pzd
      Right so they invested the money back into the business - even better.
      Apr 16
    • Tableau krxi15
      But did they? If they invested it back, then how is it considered a profit from Tax perspective, isn’t it the cost of running business in that case.
      Apr 16
  • Oracle pzd
    Is the implication here that Netflix has a moral obligation to pay more than what tax code requires of them?
    Apr 16 4
    • SAP uezc76
      No, I am pretty sure this is not the implication. I think the implication is that the tax code "has a moral obligation" to require them to pay more.
      Apr 16
    • Oracle pzd
      (deleted my previous comment, didn't want to sound sarcastic.)

      Remember that the laws you write today is going to determine the course of the next recession. You do not want to grab so much that you can't get your hands out of the jar.
      Apr 16
    • Microsoft
      tech.ladki

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      tech.ladkimore
      How much is so much?
      The same could be said for any non zero tax rate
      Apr 16
    • Oracle pzd
      Yep exactly.
      Apr 16
  • Microsoft
    tech.ladki

    Microsoft

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    Google
    tech.ladkimore
    If corporations not paying tax is as good as it can be, as commenters here strongly believe, why even have corporate taxes?
    Apr 16 2
    • Google / Eng Bergey Sin
      A: It's a silent way (doesn't appear on a W-2 or 1040) for politicians to raise taxes from the population.
      Apr 16
    • BluVector sparked
      Most people aren’t saying that there shouldn’t be corporate taxes, just that they aren’t upset that a successful company that is still growing and reinvesting doesn’t have to pay any directly
      Apr 16
  • Google / Eng Bergey Sin
    Firms can't pay taxes, only people can. When you impose taxes on a company, really some combination of shareholders (through lower returns), employees (lower wages), and customers (higher prices) bears the burden. Which of these bears the brunt of the tax depends on the specifics of the markers the firm operates in. A cynical view is that corporate taxes allow politicians to silently (doesn't appear on a W-2 or 1040) raise more taxes from the population.
    Apr 16 1
    • Apple castigator
      Except that the excesses of revenues goes in large part to shareholders and in small part to employees
      Apr 16
  • Google poorish
    Plz. Netflix hired so many people ,and these people pay income tax at around 30 percent …… plus the sales tax that consumes paid , the cash flow that employees spent back into economy. Why is not paying corporate tax a "loss"? It simply means corporates are reinvesting into themselves...
    Apr 16 0
  • Tableau / Eng
    ThePlague

    Tableau Eng

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    ThePlaguemore
    Amazon did the same. It is called re-investing profits
    Apr 16 0
  • Apple Dr.Dre
    I haven’t read Netflix financial report yet; but I suspect it’s just miss understanding of how to interpret the numbers. Go to their cash flow statement and u should see them indicate the cash they paid for tax. I can see they’re paying zero Federal tax but they gotta paid quite a bit of state income taxes.
    Apr 16 0
  • Apple castigator
    I would be OK if there wasn’t any corporate tax, but I would zero any kind of subsidy and put a cap on dividends and payback. Revenues must fuel reinvestment in the business, not enrich Wall Street parasites
    Apr 16 0