They say there are two inevitables in life: death and taxes.
But perhaps we can add one more: an increase in the cost of Netflix. So with all that money the streaming giant is pulling in, they must have a pretty hefty tax bill. Turns out, no matter the tier plan you're on, whatever you paid them last month is still more than they gave Uncle Sam. Netflix earned a record income of $845 million in the US during 2018, but paid not a cent to the IRS. In fact, they received a $22 million dollar rebate, according to the Institute on Taxation and Economic Policy. ITEP senior fellow Matthew Gardner blames the Tax Cuts and Jobs Act passed in 2017, noting, "the company's profit last year equaled its haul in the previous four years put together."
Would knowing this make you reconsider your subscription? Did you already file your taxes for this year? How does it compare to last year?
"#Netflix posted its largest-ever U.S. profit in 2018—$845 million—on which it didn't pay a dime in federal or state income taxes... In fact, the streaming giant received a $22 million return."
— Streets Kitchen (@streetskitchen) February 6, 2019
Netflix and (no tax) bill. https://t.co/GB5aGDXp6q
— Richard Phillips (@taxjusticewonk) February 5, 2019