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Yeah I think this is the real problem. Most people think Amazon makes a lot of money. They even say they made $12B, but they gave billions to of RSUs to employe
by rb808 8y ago
Yeah I think this is the real problem. Most people think Amazon makes a lot of money. They even say they made $12B, but they gave billions to of RSUs to employees so the IRS wisely says they didn't make much. The truth is they didn't make much/any money which is why their tax is low.
- olliej 8y agoThe problem I have is being able to report different profits to different groups - you should be required to have a single pretax profit number, and that is what you report. If you really don’t make money then you should be required to report that to your shareholders, and conversely if you tell your shareholders you’re making money, then you should be required to report that value to the irs. I don’t care which one you use (I mean I do, but in this case it’s not the specific point), what I’m saying is you don’t get to make money by having overvalued shares (by giving one profit number or the market), while not paying tax (by reporting a different number to irs)
- rb808 8y agoChoose the tax number. "Accounting for Growth" was a classic book written after the late 80's stock market bubble in the UK about how people were fooled by bad accounting and how to spot fraud. One of the main pieces of advice is that the tax number is usually more correct. If a company says it makes huge profit while paying little tax its likely not real profit.