One Thing: Day 236: How Amazon Pays $0 Tax
Day 236: How Amazon Pays $0 Tax
Last week I finished off explaining how the Virtual office landscape is experiencing some serious fatigue and what the future of offices will look like.
Speaking of where we’ll end up…
Freedom is never more than a generation away from extinction.
It’s not something that gets passed down like a bad cancer gene or blue eyes.
Freedom is something that was fought for and needs to be protected…. handed down for the next generation to do the same.
The alternative is to converse via rocking chair telling our kids and grandkids what it was like when we were free and the American Dream was possible.
We must FIGHT FOR FREEDOM and stop asking to have it taken away.
Your ONE COACHING THING Today Is:
‘How Amazon Pays $0 Tax’
Last week I got an INSANE amount of comments around the question I answered “How do I go from $100,000 to $500,000 with my coaching business…
A large part of my answer was explaining ‘A Feedback Loop.’
I’ll further explain the concept using Amazon and my boy Jeff Bezos.
If I have a room of 100 people and I ask ‘what is your number one expense?’… 80 hands go up for mortgages and housing.
Not even close to their highest expense.
Your number one expense… my number one expense and everyone we know’s number one expense is the same…
Not by a little but by a COUNTRY MILE.
A smart place to educate yourself.
In 2019 Amazon paid $0 income tax on over $13 Billion dollars of revenue.
If that’s not mind-boggling enough…. they also received a $129 Million dollar tax rebate (refund) from the government.
So, how do they do it…?
A Feedback Loop.
You only pay tax on profit.
Amazon avoids income tax by feeding revenue back into their business… In 2019 they had an operating loss of $627 Million.
- Research and Development… $22.6 Billion was fed back into the company as they continue to CREATE new products and services.
- Property, Plant, and Equipment… they’ve fed back over $60 Billion back in over the last few years.
- Stock-Based Compensation… rather than pay in cash they pay their staff bonuses in shares/stock options and can, therefore, write off the shares as a business expense.
*The higher the Amazon stock price goes the more they can write off as an expense!!
Last year Amazon saved over $1 Billion in tax with the above Feedback Loop where they fed operations rather than their pockets.
Think of the above and then the example of a guy that goes from $100,000 to $200,000 with his coaching business…
Then buys a boat.
Wonders why he’s not getting anywhere.
In a nutshell… Amazon reinvests all their profits back into the company to help it grow. Therefore, pay no tax.
Your business is your child… feed it.
You heard it here first.
Please forward this to someone that needs my daily email in their life.
Obsessed with your business coaching success,
Karl Bryan aka King Karl
PS. Camping Tip: If you get lost in the woods… a compass can help you get lost more north.
PPS. If you’re looking for a proven system to follow for your coaching…. I created business coaching software and high-end step by step training to support it…
It’ll teach you ‘How to find any small business owner $100,000 in 45 minutes without them spending an extra dollar on marketing or advertising.’
Imagine finding your annual $12,000 to $50,000 coaching fees BEFORE you started coaching your new clients?! And a proven coaching system created for you to follow with your new coaching client.
Reply to this post if you want to start following a proven coaching system.
PPPS. Forward this to someone that needs to subscribe to my daily emails and get a limited time, complimentary subscription to my business coaching magazine go here:
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Entertaining, Informative, Uncensored, Unedited:
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Karl Bryan gets clients for Business Coaches...period. He is the Founder and Editor-in-Chief of The Six-Figure Coach Magazine and Chairman of Leader Publishing Worldwide, home of the largest private community of Business Coaches (24 countries and counting) in the world.
His goal is straight forward… to help serious coaches/consultants get more clients.