Trump’s Tax Law Helps Amazon Rake In Nearly $2 Billion In One Quarter
Amazon brought in $1.9 billion in profits during the final months of 2017, helped by a significant tax cut from the Tax Cuts and Jobs Act signed into law by President Donald Trump, the company announced Thursday.
The company’s income during the holiday months of 2017 were nearly double the $749 million Amazon brought in during the final quarter in 2016, helped by both the tax law and better than expected sales of the home automation technology Alexa.
“Our 2017 projections for Alexa were very optimistic, and we far exceeded them,” Amazon founder and CEO Jeff Bezos said in a statement. “We don’t see positive surprises of this magnitude very often — expect us to double down.”
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The “provisional tax benefit for the impact of the U.S. Tax Cuts and Jobs Act of 2017 of approximately $789 million” also helped the company’s income, but net sales during the last months of 2017 increased 31 percent to $177.9 billion, compared with $136 billion in 2016, the company said.
As an online company, Amazon startled the world when it purchased organic grocery chain Whole Foods in August. Sales from “physical stores,” which includes a few Amazon retail outlets but is mostly Whole Foods, were $4.52 billion. Whole Foods’ revenue from late 2016 was $3.5 billion.
Amazon also runs physical stores without cashiers at several locations around the country, in addition to fulfilling 40 cents out of every dollar each dollar spent online in the U.S., the Wall Street Journal reports.
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