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OP-ED: Why are you paying more in taxes than Amazon and Netflix?

MINNESOTA SPOKESMAN-RECORDER — This tax season, millions of Americans will be receiving smaller refunds from the IRS — or worse, a bill.

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By Morris Pearl

This tax season, millions of Americans will be receiving smaller refunds from the IRS — or worse, a bill. At the same time, two of the most profitable companies in the country are not only avoiding paying taxes altogether, but one is receiving a federal rebate check of hundreds of millions of dollars.

Both corporations and individuals are subject to federal income taxes. For those individuals who earn their money through work, the rates are anywhere from 10 to 37 percent. For those of us who live off investment income, marginal tax rates are zero percent, 15 percent and 20 percent (this sucks too, but I’ll get into that at another time).

On the other hand, the corporate tax rate is 21 percent. It would be reasonable to assume that companies like Amazon and Netflix would pay 21 percent — or at least close to that figure — after applying deductions and other tax credits. This has not been the case.

From 2012 to 2017, Amazon paid federal income tax at an average rate of 11.4 percent on over $8 billion in profits, almost half the highest marginal tax rate for corporations now and less than one-third the marginal tax rate for corporations before 2018, which was 35 percent. In both 2017 and 2018, the company paid $0, and this year, the company will be receiving a $129 million rebate.

Netflix didn’t pay much more, either. The streaming service paid $0 in tax in 2017, and their tax rate was 1 percent for 2018. This is despite Netflix boasting 139 million paying subscribers in 2018, with a profit of about $845 million.

Unfortunately, this is a longstanding problem with the tax code; not simply a result of Republicans’ Tax Cuts and Jobs Act going into effect. In 2017, after raking in $5.6 billion in U.S, profits, Amazon paid $0 in federal income tax. They achieved this zero-dollar tax bill in part by claiming tax credits for executive stock options.

These companies get a tax deduction when people with stock options exercise these options. For example, say two years ago (when the stock price was $140), the company issued stock options with an exercise price of $140. Let’s say that now, the stock price is $340, and employees cash in their options. The company issues them shares of stock, and the company gets a tax deduction of $200 per share even though the company does not actually have any cash expenses (on a cash basis, the company is actually up $140 per share). In fact, for financial accounting purposes, the company only has the much smaller expense of the value of the option at the time it is granted.

Netflix did the same, as well as something even more ridiculous. To lower their tax contribution, Netflix claimed a number of research and development (R&D) credits. This credit doesn’t just mean that research is deductible (like any other expense), but that (for the eligible R&D costs) the federal government actually pays 100 percent of the costs one of two ways.

A company can either take 100 percent of the eligible R&D costs and deduct it from whatever they owe or have it added to their refund. Interestingly, in all of the discussions of that credit that I read, members of Congress were always talking about inventing lifesaving drugs to cure cancer or something similar. I never heard anyone discuss the need for taxpayers to pay for research into making better recommendations for what shows you might like to stream, but alas.

Obviously, Netflix’s effective tax rate of 1 percent is fundamentally unfair, and Amazon getting a refund is absurd. But, after Republicans’ tax overhaul in late 2017, one can be sure their tax rate is lower than that of middle-class Americans is now absolutely by design and not a mistake.

There’s no reason why two extremely successful companies have lower effective tax rates than the average middle-class American, but here we are.

Morris Pearl is a former managing director at BlackRock, Inc., and Chair of the Patriotic Millionaires.

This article originally appeared in the Minnesota Spokesman-Recorder.

Activism

At the event, 16 entities signed the EIP pledge, vowing to take steps to increase public contracting opportunities in their spheres for small and historically underutilized businesses.  The pledge signees included Hub International, the Port of San Francisco, the San Francisco Public Utilities Commission, California High-Speed Rail Authority, the Port of Oakland, Robert Graham of Webcor Builders, Holder Construction, the Weitz Company, Sky Blue Builders, Hornblower, Swinerton, Luster National, Talson Solutions, Center for Community Wealth Building, and the Construction Contractors Alliance.

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Toks Omishakin, secretary of the California State Transportation Agency, was one of the speakers at the event. Photo by Shellee Fisher Photography and Design.
Toks Omishakin, secretary of the California State Transportation Agency, was one of the speakers at the event. Photo by Shellee Fisher Photography and Design.

By Calvin Naito, Special to The Post

On June 4, a national nonprofit named the Equity in Infrastructure Project (EIP) – which aims to increase public construction contracting opportunities for small and historically underutilized businesses – held a day-long event in downtown San Francisco to rally supporters and build momentum to its cause.

It was attended by more than 100 individuals from public agencies, private firms, and other organizations committed to increasing contracting opportunities with governmental agencies, thereby creating more competition and lowering public costs.

The EIP event was held the Hyatt Regency San Francisco in conjunction with BuildIT, which aims to increase contracting opportunities for LGBT-owned businesses.

At the event, 16 entities signed the EIP pledge, vowing to take steps to increase public contracting opportunities in their spheres for small and historically underutilized businesses.

The pledge signees included Hub International, the Port of San Francisco, the San Francisco Public Utilities Commission, California High-Speed Rail Authority, the Port of Oakland, Robert Graham of Webcor Builders, Holder Construction, the Weitz Company, Sky Blue Builders, Hornblower, Swinerton, Luster National, Talson Solutions, Center for Community Wealth Building, and the Construction Contractors Alliance.

Following the workshop, BuildIT hosted a VIP evening reception honoring EIP, whose principals – Phil Washington, John Procari, and Rick Jacobs – accepted the award.

The event also set in motion the coalition’s efforts to implement recommendations from EIP’s “Procurement for Prosperity: A Playbook.”

The Playbook is a practical guide for public agency leaders and procurement and contracting practitioners to grow the capacity of small and first-time contractors, strengthen competition, and deliver better value for taxpayers.

Toks Omishakin, Secretary of the California State Transportation Agency (CalSTA), a long-time EIP supporter, also told attendees, “This is about commitment.  This has been a life’s work. This is a tailwind moment.”

The event’s presenting sponsor was Hub International, one of the largest insurance brokerages in the nation, which was joined by partners Travelers Insurance and the State Compensation Insurance Fund.

After the pledge-signing ceremony, attendees participated in a workshop in which they examined the policies, practices, and programs needed to meet EIP goals, learned from practitioners, and identified next steps toward utilizing the Playbook.

Ingrid Meriwether, formerly of Merriwether & Williams Insurance Services (MWIS) and current president of Hub International’s Aligned Risk Management, MWIS, described the hard-fought lessons she and her MWIS team have learned over the last three decades administering contractor development programs (CDPs) for the City and County of San Francisco, Alameda County, City of Los Angeles, LA Metro, and other municipalities.

The CDPs help small and local construction firms win public infrastructure contracts with these government agencies.  The program provides bonding assistance, contract financing, technical support, training, and other services to underrepresented businesses funded by public agencies who seek greater contracting participation with these firms.

Merriwether said programs like these “break down systemic barriers, create greater fairness, and save taxpayers money by enabling more competition.  The contractor development programs have, cumulatively, over two decades, helped contractors access over $1 billion in bonding, supporting over $380 million in awarded contracts, and maintaining a loss ratio 250 times lower than the industry average – while saving participating municipalities more than $27 million in contracting costs as a result of enabling more competition.”

Rick Jacobs, EIP co-founder and co-chair urged attendees make plans to meet again in the near future “to continue building on this work, share progress on organizational commitments, and discuss how we can collectively advance the goals of the EIP pledge.”

For more information on the EIP and to access a copy of the Playbook, go online to https://equityininfrastructure.org/

Calvin Naito is communications manager for Equity in Infrastructure Project.

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Activism

Oakland Museum Presents Landmark Retrospective Celebrating Beloved Bay Area Artist Mildred Howard

“Poetics of Memory” coincides with a year of major recognition for Howard. In 2026, she received the California Arts Council’s 50th Anniversary Award, honoring artists whose work has shaped California’s cultural and civic life, as well as the Museum of the African Diaspora’s Artist Impact Award. In 2025, she was awarded a prestigious Guggenheim Fellowship in recognition of her transformative contributions to American cultural life.

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Mildred Howard. Photo by Christine Cueto for the Oakland Museum of California, 2025.
Mildred Howard. Photo by Christine Cueto for the Oakland Museum of California, 2025.

Special to The Post

The Oakland Museum of California (OMCA) opened “Mildred Howard: Poetics of Memory,” the first major museum survey of Bay Area artist Mildred Howard, on June 12.

The exhibition spans five decades of Howard’s influential work, bringing together immersive installations, found-object sculptures, archival materials, and new commissions that explore memory, identity, and power in American life.

“Poetics of Memory” coincides with a year of major recognition for Howard. In 2026, she received the California Arts Council’s 50th Anniversary Award, honoring artists whose work has shaped California’s cultural and civic life, as well as the Museum of the African Diaspora’s Artist Impact Award. In 2025, she was awarded a prestigious Guggenheim Fellowship in recognition of her transformative contributions to American cultural life.

Howard was born in San Francisco in 1945 and raised in the East Bay, where she went on to study Afro-Haitian dance, make and sell clothing, and experiment with collage and sculpture.

Her multimedia art practice emerged from these experiences, later becoming associated with West Coast conceptual art, San Francisco funk, and a vibrant community of artists like Oliver Jackson, Betye Saar, and Raymond Saunders. Since the 1970s, she has used found materials and family stories to explore memory—both individual and collective.

At OMCA, visitors enter “Poetics of Memory” through a series of intimate galleries featuring Howard’s early mixed-media pieces and sculptures, along with a large video projection of a number of her public artworks.

Together, they emphasize Howard’s interest in everyday objects as powerful carriers of individual and shared stories. Highlights include collages that remix images of the artist herself; found-object sculptures like The History of the United States with a few Parts Missing (2007) that address omissions in dominant narratives; and public works like “Locks and Keys for Harry Bridges” (2001) that transform urban space into a meditation on access and labor.

This culminates in a richly detailed “studio” environment, where works in progress, archival exhibition flyers, historic photographs of Howard and her community, postcards from fellow artists, and other materials offer insight into her creative process and daily life.

The exhibition then opens into a high-ceilinged, dramatically lit space that brings together Howard’s signature immersive installations. On one end, “Crossings” (1997/2026) – a field of hundreds of ceramic eggs leading to an ornate mirror – suggests cycles of birth, motherhood, and transition, while drawing on the emotional echoes of the Middle Passage. On the other end, “Blackbird in a Red Sky” (a.k.a. “Fall of the Blood House”) (2002) – a red glass shack bordered by a pond – also uses reflection and transparency to draw viewers into the work and prompt consideration of themes of identity and home.

Howard’s newest video installation, “Moving Stills” (2026), repurposes never-before-seen family footage she took as a teenager on a train trip to the American South. Projected onto cascading layers of translucent fabric that stretch across an entire gallery wall, the piece immerses viewers in a layered meditation on memory, migration, and time.

The “Mildred Howard: Poetics of Memoryexhibit will be on display through Oct. 11 at the Oakland Museum of California, 1000 Oak St., Oakland, CA 94612. Museum hours are Wednesday through Sunday, 11 a.m. to 5 p.m., with extended hours on Fridays to 9 p.m.

This story is sourced from the Oakland Museum of California press office.

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Alameda County

Ferry Fares to Increase July 1 as Ridership Hits Record Highs

The Oakland and Alameda routes will increase from $4.90 to $5.10, the South San Francisco route will go up from $7.40 to $7.60, and the Vallejo route will increase from $9.90 to $10.

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Courtesy photo.

By Mike Aldax, The Richmond Standard

Starting July 1, the standard adult fare for the San Francisco Bay Ferry route between Richmond and San Francisco will increase to $5.20, up from the current $4.90.

Discounted fares for eligible passengers, including youth, seniors, people with disabilities, and Clipper START users, will rise to $2.60 from the current $2.40. Children under 5 will continue to ride for free.

The Oakland and Alameda routes will increase from $4.90 to $5.10, the South San Francisco route will go up from $7.40 to $7.60, and the Vallejo route will increase from $9.90 to $10.

The adjustments are part of a systemwide fare update approved by the agency’s Board of Directors, which is moving away from a flat 3% annual increase to route-specific pricing for the 2027 and 2028 fiscal years.

This fare update arrives as San Francisco Bay Ferry celebrates a historic May, transporting 301,270 passengers. The record-breaking figure represents an 8% increase over May 2025 and marks the third consecutive month of record-setting ridership.

Furthermore, it is the sixth month in a row that passenger numbers have exceeded pre-pandemic levels. Weekend travel has been a primary driver of this growth, with average weekend ridership seeing a 56% increase compared to pre-pandemic trends.

The agency states that the fare adjustments are necessary to ensure the long-term fiscal sustainability of public ferry services. By shifting to route-specific adjustments, the agency aims to offset rising operating costs while maintaining the high levels of service frequency and reliability.

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