Amazon’s Tax Bill Falls to $1.2B After $7.8B Relief, Warren Criticizes
Amazon’s tax bill plunged from $9B in 2024 to $1.2B last year after it secured $7.8B in tax relief under new depreciation and R&D incentives. The $7.8B break equals 100,000 years of median US household income and far exceeds Taylor Swift’s $2B tour revenue.
1. Tax Relief and Earnings Impact
Amazon reduced its federal tax expense from $9 billion in 2024 to $1.2 billion in 2025 after tapping $7.8 billion in tax relief. This dramatic cut boosted after-tax profits and lowered the company’s effective tax rate significantly.
2. Drivers of Tax Reduction
The bulk of the $7.8 billion relief stemmed from expanded depreciation allowances and enhanced research-and-development credits under recent legislation. Amazon also noted it invested approximately $340 billion in US operations last year, qualifying for additional incentives.
3. Political Criticism and Comparisons
Senator Elizabeth Warren slammed the scale of Amazon’s relief, equating it to 100,000 years of median household income and noting it was four times the $2 billion revenue of Taylor Swift’s Eras Tour. She argued that such incentives prioritize corporate gains over taxpayer needs and could fuel legislative pushback.