WEBDESK: A new report by the Fair Tax Foundation has raised serious concerns about the tax practices of some of the world’s biggest tech companies, known collectively as the Silicon Six. These companies – Amazon, Meta, Apple, Microsoft, Alphabet (Google), and Netflix – are accused of avoiding around $278 billion in US corporate taxes over the last ten years.
The report found that the Silicon Six paid an average effective corporate tax rate of just 18.8%. This is far lower than the official US corporate tax rate of 29.7%. When excluding one-time repatriation tax payments, the average tax rate drops even further to 16.1%.
According to the FTF, these companies earned $11tn in revenue and $2.5tn in profit during the period under review.
Netflix had the lowest effective tax rate among the Silicon Six, paying only 14.7%. Amazon, while showing a slightly higher rate of 19.6%, was still named as having the worst tax behaviour. The report suggests that these companies shifted their profits to tax-friendly countries to reduce the amount of tax paid in the US.
The Fair Tax Foundation also pointed out that the Silicon Six overstated their tax payments by nearly $82 billion in their financial reports, by including taxes they might pay in the future – a move seen as misleading.
Chief executive Paul Monaghan described these practices as “aggressive” and accused the firms of leveraging both economic and political influence through extensive lobbying.
The Foundation criticized these firms for embedding tax avoidance into their business models and using their political and economic power to influence tax laws in their favour.
In response, companies like Meta, Netflix, and Amazon stated that they comply with current tax laws and contribute significantly to the economy through investment and job creation.
This report has reignited global conversations about tax fairness and corporate responsibility, with many calling for tighter regulations on the Silicon Six and similar tech giants.
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