Amazon's federal tax bill decreased dramatically to $1.2 billion in 2025 from $9 billion in the prior year, a shift attributed to enhanced depreciation allowances and expanded research and development tax credits introduced under recent tax policy changes. The $7.8 billion reduction in tax obligations occurred despite the e-commerce giant reporting increased profitability during the period.
Senator Elizabeth Warren publicly objected to the magnitude of Amazon's tax relief, asserting that the financial benefit to the company exceeds what an average U.S. household would earn over 100,000 years based on median income figures. Warren contended that such tax savings could have been redirected toward healthcare funding and other public priorities.
The tax code modifications, which broadened depreciation schedules and research incentive provisions, have generated broader debate regarding corporate tax burden distribution. Amazon's significant tax reduction underscores how changes to business deduction structures can substantially affect effective tax rates for large corporations, particularly those with substantial capital investments and research operations.