A recent report by the Fair Tax Foundation (FTF) accused six major tech companies of tax evasion, drawing attention to Big Tech's tax practices.
Allegations and Facts
According to the Fair Tax Foundation report, six major tech companies — Amazon, Meta, Alphabet, Netflix, Apple, and Microsoft — avoided paying nearly $278 billion in U.S. corporate income taxes over the past decade. These firms paid an average tax rate of 18.8%, significantly lower than the 29.7% average for comparable companies.
Companies' Responses
Amazon, Meta, and Netflix denied the allegations of tax evasion. Amazon stated that it has invested over $1.2 trillion in the U.S. since 2010 and complies with all tax laws. Similarly, Meta assured that it follows local tax rules in every country it operates in.
Discussion on Tax Fairness
The FTF report sparked public discussion about corporate tax fairness as budget deficits grow. Experts emphasize that the companies' tax strategies, such as using low-tax jurisdictions, are legal but raise questions about the need for tax system reform.
The increased scrutiny of Silicon Six's corporate tax practices highlights the need for open discussions about tax fairness in modern economic realities.
