Whether you paid $8.99 for basic, $12.99 for standard, or splurged for the $15.99 premium package so you would have the privilege of watching endless streaming shows and movies on Netflix last month, a new analysis shows you still paid much, much more than the company paid in federal and local income taxes for the entire year.
“When hugely profitable corporations avoid tax, that means smaller businesses and working families must make up the difference.” —Matthew Gardner, ITEP senior fellowAccording to Matthew Gardner, senior fellow at the Institute on Taxation and Economic Policy (ITEP), “The popular video streaming service Netflix posted its largest-ever U.S. profit in 2018—$845 million—on which it didn’t pay a dime in federal or state income taxes.”
Not a dime. Not one penny.
“In fact,” noted Gardner in a blog post on ITEP’s website on Tuesday, “the company reported a $22 million federal income tax rebate.” So even if you paid Netflix nothing last month because you chose not to subscribe—or maybe you were enjoying an introductory free-month trial—you still didn’t make out better than the online giant.
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