by Lauren Fruen
Netflix paid NOTHING in federal or state taxes in 2018 despite posting record profits of $845million – and even got a $22million rebate
Netflix didn’t pay a cent in state or federal income taxes last year, despite posting its largest-ever U.S. profit in 2018 of $845million, according to a new report.
In addition, the streaming giant reported a $22 million federal tax rebate, according to the Institute on Taxation and Economic Policy (ITEP).
Senior fellow at ITEP Matthew Gardner said corporations like Netflix, which has its headquarters in Los Gatos, California, are still ‘exploiting loopholes’ and called the figures ‘troubling’.
Netflix says they paid $131 million in taxes in 2018 and this is declared in financial documents. But Gardner says this figure relates to taxes paid abroad, according to a separate part of their statements.
He told DailyMail.com: ‘It is pretty clearly true that Netflix’s cash payment of worldwide income taxes in 2018 was $131 million. But that is a worldwide number—the amount Netflix actually paid to national, state and local governments worldwide in 2018. This tells us precisely nothing about the amount Netflix paid to any specific government, including the U.S.’
Gardner added: ‘Fortunately, however, there is another, more complete geographic disclosure of income tax payments.
‘The notes to the financial statements have a detailed section on income taxes. And what this tells us is that all of the income taxes Netflix paid in 2018 were foreign taxes. Zero federal income taxes, zero state income taxes in the US.’
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