Amazon has disclosed that its tax liabilities dropped to $1.2 billion in the last year, down from $9 billion the year prior, even as its profits surged by 45% to nearly $90 billion. This drastic reduction in tax payments has raised concerns and questions regarding the factors that led to such a shift. According to Politico, a significant part of this tax decrease can be attributed to generous new depreciation deductions introduced in the One Big Beautiful Bill by Republican lawmakers, which greatly benefits Amazon given its massive infrastructure needs for its delivery operations and its investment in artificial intelligence data centers.

Additionally, the expansion of tax credits for company expenditures on research and development has also contributed to the reduced tax burden, albeit to a lesser extent. With these advantages, Amazon has managed to enhance its profit margins while lowering its tax contributions, a scenario that has not gone unnoticed by critics. The company has long faced scrutiny from Democrats over its tax policies and promises to face backlash following its recent tax report submitted to the U.S. Securities and Exchange Commission.

As Amazon prepares for potential criticism, the broader implications of such tax cuts raise questions about the fairness and sustainability of tax policies favoring large corporations. The situation underlines ongoing debates in the U.S. about corporate taxation, economic inequality, and the responsibility of companies to contribute fairly to public revenue, especially as they reap substantial benefits from the market and government policies.