Description: Amazon has pulled the plug on setting up a second HQ in Long Island, New York. Opposition had been rising to the approximately $3 billion in tax breaks Amazon was due to receive from putting offices in the Empire State. The argument seems to break down on two sides: one claiming Amazon is bringing big benefits of jobs, taxes and salaries; the other claiming Amazon is not that great an employer and is being treated to big tax breaks.
Date: February 15 , 2019
1) What do you see as the most interesting part of this Amazon story?
2) The article says this e-Commerce giant has a tax rate of negative one per cent. How do you think this came about?
3) Page 806 in Wiley’s Financial Accounting: Tools for Business Decision-Making gives us historical information on Amazon’s price-earnings ratio. See if you can find Amazon’s price-earnings ratio for he most recent fiscal year.