{"id":308672,"date":"2021-03-25T11:15:28","date_gmt":"2021-03-25T15:15:28","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=308672"},"modified":"2021-03-25T11:15:34","modified_gmt":"2021-03-25T15:15:34","slug":"zoom-profits-in-2020-660-million-zoom-tax-payment-in-2021-0","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/zoom-profits-in-2020-660-million-zoom-tax-payment-in-2021-0\/","title":{"rendered":"Zoom Profits in 2020: $660 Million. Zoom Tax Payment In 2021: $0."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fzoom-profits-in-2020-660-million-zoom-tax-payment-in-2021-0%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=308672&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/03\/fb_image-3402.jpeg?w=1200&amp;h=800&amp;ixlib=react-9.0.3\" class=\"ff-og-image-inserted\" \/><\/div>\n<p>With the COVID-19 pandemic forcing workers to stay home for much of 2020, the videoconferencing utility Zoom made money hand over fist.<\/p>\n<p>Zoom hauled in some $660 million in pre-tax profits in 2020, compared to $16 million in profits in 2019, <a href=\"https:\/\/itep.org\/zoom-pays-0-in-federal-income-taxes-on-pandemic-profits\/\">according<\/a> to the Institute on Taxation and Economic Policy.<\/p>\n<p>But the California-based company, founded in 2011 by Eric Yuan, didn\u2019t pay a single dollar in U.S. taxes, according to reports.&nbsp;A simple application of the federal corporate tax rate of 21% would put the company\u2019s IRS bill at $138,600,000.<\/p>\n<p>\u201cThe Silicon Valley firm appears to have achieved that feat largely thanks to its use of stock-based compensation for employees, which helped reduce its worldwide tax bill by more than $302 million for the year ending Jan. 31,\u201d The New York Post <a href=\"https:\/\/nypost.com\/2021\/03\/23\/zoom-paid-no-federal-income-tax-amid-pandemic-profits\/\">reported<\/a>.<\/p>\n<p>\u201cCorporations that pay their executives in stock often benefit from a provision in the federal tax code that lets them write off expenses that appear far larger than their actual cost,\u201d according to the Institute.<\/p>\n<p>\u201cStock options aren\u2019t the entire story behind Zoom\u2019s success in avoiding federal income taxes in 2020,\u201d Matthew Gardner, a senior fellow at the think tank, wrote in a&nbsp;<a href=\"https:\/\/itep.org\/zoom-pays-0-in-federal-income-taxes-on-pandemic-profits\/\" target=\"_blank\" rel=\"noreferrer noopener\">blog post<\/a> detailing Zoom\u2019s tax discount. \u201cThe company appears to have enjoyed tax benefits from accelerated depreciation&nbsp;and research and development tax credits. Notably, the combination of three tax breaks appears to be the recipe that&nbsp;Amazon&nbsp;and&nbsp;Netflix have used with such success to reduce their federal tax bills during the Trump corporate tax era so far.\u201d<\/p>\n<p>\u201c\u2026 [C]ompanies that compensate their leadership with stock options can write off, for tax purposes, huge expenses that far exceed their actual cost. This is a strategy that has been leveraged effectively by virtually every tech giant in the last decade, from Apple to Facebook to Microsoft. Zoom\u2019s success in using stock options to avoid taxes is neither surprising nor (currently) illegal,\u201d Gardner wrote.<\/p>\n<blockquote readability=\"10\">\n<p><em>Zoom\u2019s corporate tax avoidance has helped create a short-term cash bonanza for the company: Zoom ended the fourth quarter of 2020 with $4.2 billion in cash and equivalents. This prompted one analyst on the company\u2019s&nbsp;fourth-quarter earnings call&nbsp;to ask how the company planned to spend it all, to which Zoom\u2019s CFO and CEO responded that while they haven\u2019t yet mapped out a strategy to deploy their newfound mountain of cash, \u201cif any of you have any great advice how to do that\u201d they\u2019d love to hear it.<\/em><\/p>\n<\/blockquote>\n<p>Gardner noted that that may end soon under President Joe Biden and congressional Democrats, who have signaled \u201ctheir intention to revisit the question of corporate tax reform, the breathtaking tax avoidance of these three companies gives policymakers a clear path forward for base-broadening tax reform. If lawmakers want to change this, they need only look to their own handiwork in failing to curb tax breaks in the past.\u201d<\/p>\n<p>Sen. Bernie Sanders (I-VT), who has long called for higher corporate taxes, said that Zoom was taking advantage of a \u201crigged\u201d corporate tax code.<\/p>\n<p>\u201cIf you paid $14.99 a month for a Zoom Pro membership, you paid more to Zoom than it paid in federal income taxes even as it made $660 million in profits last year \u2013 a 4,000 percent increase since 2019,\u201d Sanders wrote on Twitter. \u201cYes. It\u2019s time to end a rigged tax code that benefits the wealthy &amp; powerful.\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\" readability=\"11.633522727273\">\n<p lang=\"en\" dir=\"ltr\">If you paid $14.99 a month for a Zoom Pro membership, you paid more to Zoom than it paid in federal income taxes even as it made $660 million in profits last year \u2013 a 4,000 percent increase since 2019. Yes. It&#8217;s time to end a rigged tax code that benefits the wealthy &amp; powerful. <a href=\"https:\/\/t.co\/P6hQnpWAPT\">https:\/\/t.co\/P6hQnpWAPT<\/a><\/p>\n<p>\u2014 Bernie Sanders (@SenSanders) <a href=\"https:\/\/twitter.com\/SenSanders\/status\/1373638850619322372?ref_src=twsrc%5Etfw\">March 21, 2021<\/a><\/p>\n<\/blockquote>\n<p>Zoom did pay about $5.7 million in global income taxes for the 2019 tax year, an effective tax rate of just 0.8%, according to the company\u2019s annual report.<\/p>\n<p><em>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <a href=\"https:\/\/www.dailywire.com\/subscribe\">member<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the COVID-19 pandemic forcing workers to stay home for much of 2020, the videoconferencing utility Zoom made money hand over fist.Zoom hauled in some $660 million in pre-tax profits &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2311122,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/03\/fb_image-3402.jpeg?w=1200&h=800&ixlib=react-9.0.3","fifu_image_alt":"Zoom Profits in 2020: $660 Million. Zoom Tax Payment In 2021: $0.","footnotes":""},"categories":[],"tags":[],"class_list":["post-308672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/03\/fb_image-3402.jpeg?w=1200&h=800&ixlib=react-9.0.3","fifu_image_alt":"Zoom Profits in 2020: $660 Million. Zoom Tax Payment In 2021: $0.","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/308672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=308672"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/308672\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2311122"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=308672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=308672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=308672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}