Amazon released its quarterly earnings report today: worldwide net sales increased 26% to $75.5 billion, but operating income decreased about 10% to $4 billion, and net income decreased 30% to $2.5 billion. Back in February I wrote an article looking at what Amazon actually pays in income taxes, and delving a bit into the fundamentals of its business. With new numbers and an active effort in Seattle to impose a payroll tax on the company, let’s update those numbers.
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Understanding Amazon’s income tax bill
It’s become a common meme in political circles to claim that Amazon pays nothing, or next to nothing, in income taxes. But is it true? Let’s dig in.
Continue readingWho owns Amazon?
We talk about companies in funny ways. Sometimes we anthropomorphize them, as many have with Amazon over the past couple of days while discussing the company’s decision to pause construction of its new office tower or whether it can afford to pay an additional $20 million a year in taxes. Company executives, on the other hand, will often justify decisions as necessary to fulfill their fiduciary responsibility to “the shareholders,” i.e. the often faceless owners of the company’s stock who vote for the board of directors, and by proxy control who is running the company and making key decisions. Given …
Continue readingHarrell declines to continue as mayor, but issues 4 executive orders
Seattle Mayor Bruce Harrell held a press conference late Friday afternoon, once again flanked by city department heads and his family members, to deliver the news that he has decided to decline to serve as Mayor of Seattle through the end of November. But his first 48 hours in office have been busy: he also unveiled four executive orders that he signed today.
Continue readingUnderstanding Amazon’s “HQ2” announcement
Late last week, Amazon announced that it intends to set up a second headquarters campus in another city in North America, where it would employ up to 40,000 people over time. Since then, local politicians and pundits have sounded off on what this means for Seattle. I used to work in business and operations for a division of Microsoft; I was involved in the strategy, selection and setup of several new sites, and I worked with people across the company who did similar work. Based on that knowledge, here’s my take on what Amazon is doing, why they’re doing it, …
Continue readingNews roundup: Uber driver union, of course
The Uber union news still dominates the papers this morning, though a few other nuggets slipped through.
Continue readingAmazon Alley
The City Council today considered the vacation of right-of-way for an alley in a block of south Lake Union where Amazon is building a new office tower.
Continue readingMarathon City Council meeting tomorrow
Three are 52 items on the agenda for tomorrow’s weekly Full Council meeting — the last of the calendar year, and the last for this sitting Council before the newly elected members get sworn in on January 4th. Might as well get comfy; we’re going to be here a while.
Continue readingNews roundup: Amazon, Comcast, more
This morning’s news covers Amazon, Comcast, the NHL, police reform, gun safety, and the Seattle P-I globe.
Continue readingLots of anger at Amazon
This morning the Transportation Committee reviewed a fairly routine request to vacate an alley in a block that Amazon wants to build a new office building on. But during the public comment session, there was a lot of anger directed at Amazon for a variety of practices.
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