Business

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.

Published

7 years ago

March 19, 2019

Oakland Post

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.

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Alameda County

Mayor Barbara Lee Declares ‘Delroy Lindo Day,’ Presents Acclaimed Actor with Key to the City

Oakland Mayor Barbara Lee honored acclaimed actor Delroy Lindo with the Key to the City and declared “Delroy Lindo Day” to celebrate his contributions to film, television, and theater.

Published

10 minutes ago

May 15, 2026

Oakland Post

Oakland Mayor Barbara Lee presents Oakland actor Delroy Lindo the key to the cCity Council chambers of Oakland City Hall in downtown Oakland. Photo by Carla Thomas.

By Carla Thomas

Oakland honored one of its most distinguished residents on May 6 as Mayor Barbara Lee presented acclaimed actor Delroy Lindo with the Key to the City and an official proclamation declaring “Delroy Lindo Day.”

The event, titled “Rooted in Legacy: Honoring Delroy Lindo,” took place at Oakland City Hall and brought together community leaders, artists, and young people for an evening centered on storytelling, cultural pride, and intergenerational connection.

Lindo, a critically acclaimed artist who lives in Oakland, was recognized for his extensive contributions to film, television, and theater, as well as his impact on the global African diaspora. Most recently the Oscar-nominated artist was recognized for his phenomenal role as a bluesman in Ryan Coogler’s “Sinners,” a winner both critically and at the box office.

His celebrated body of work included roles in “Unprisoned,” “Malcolm X”, “Clockers,” “Get Shorty,” and ”Da 5 Bloods,” among others.

“He’s brought depth, inspiration, and authenticity to the screen,” said Lee.

The program highlighted both Lindo’s artistic legacy and his influence as a mentor. A centerpiece of the evening was an intimate fireside conversation between MLee and Lindo.

“I am a living, breathing example of somebody who has achieved the American Dream,” said Lindo. “The other side of that is I walk through the world as a Black man of African descent.”

At 5 years of age, Lindo played King Balthazar in a Nativity play. And years later on Easter of 1973 in New York the Negro Ensemble Company’s play, “The River Niger” left a great impact on him.

“Seeing that production and so many Blacks in the audience, gave me an understanding that maybe I could have a career as an actor,” said Lindo.

Students from the Oakland School for the Arts delivered powerful monologues, adding a dynamic and emotional layer to the program. The students’ instructor, Tavia Percia, chairman of the school’s theatre department, watched the performance proudly. Their performances emphasized the importance of arts education and demonstrated the next generation of talent inspired by figures like Lindo.

Five young men from All Tied Up Academy had the honor of presenting the “Rooted in Legacy” plaque to Lindo with Lee.

The evening also featured a cinematic showcase of Lindo’s work, offering a retrospective glimpse into his decades-long career.

The Golden State Warriors presented Lindo with a custom jersey, symbolizing the city’s appreciation for his contributions both on and off the screen.

The highlight of the evening came as Lee formally presented Lindo with the Key to the City and read the proclamation establishing “Delroy Lindo Day.” The recognition marked not only his artistic achievements but also his enduring connection to Oakland and his commitment to community engagement.

Celebrities, including filmmaker Ryan Coogler, congratulated Lindo via a video presentation. Lindo did not hold back the tears of gratitude. “I carry Oakland with me wherever I go,” said. Lindo, who is Jamaican via the UK, said he chose the Bay Area to call home with his wife and raise his son.

When young men who grew up with his son entered the council chambers, Lindo welcomed them to the stage for a hug and acknowledgement. “These young men are all honorable. I’ve watched them grow up, and they are the future,” he said. “These are three people that give me hope for this country.”

Addressing the audience, Lindo said, “You are part of the infrastructure of my life. My life would not be as it is without you. You give me more than I give you. Wherever I go, I bring Oakland with me.”

advised everyone to push past negativity of the world.

“Hold onto your dreams, particularly now in this country being fed the constant narrative that ‘we are less than,’ because we know we are more than. And kudos to Mayor Lee at the forefront for decades repping us for Oakland and America.”

“Everyone, hold fast to your purpose and charge as a human being and to the young; go for yours!”

Lindo thanked his many fans, friends, and family in the audience. Attendees included broadcaster Dave Clark, attorney John Burris, former Alameda County Supervisor Keith Carson, Dr. Albert Brooks who delivered his son, and First African Methodist Episcopal Church Rev. Rodney Smith. Screenwriter David Webb Peoples, who gave him his first film role in Australia, “The Blood of Heroes, was also in attendance.

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Activism

‘Hire Oakland’ Job Fair Draws 2,000, Connecting Residents to Immediate Job Opportunities

Oakland’s Hire Oakland job fair, hosted by Mayor Barbara Lee’s office, connected over 2,000 job seekers with employers, highlighting a strong demand for quality jobs and career pathways in the city.

Published

1 hour ago

May 15, 2026

Oakland Post

Left to right: Yawo Tekpa, OPIC Manager, One Stop Operator; Sofia Navarro, Deputy City Administrator; and Ray Lankford, CEO of the Oakland Private Industry Council. Photo by Jonathan Fitness Jones.

By Post Staff

The Office of Mayor Barbara Lee, in partnership with the City of Oakland and regional employers, hosted a successful Hire Oakland job fair this week at Frank H. Ogawa Plaza, bringing together job seekers and employers for a day focused on opportunity, connection, and economic mobility.

With more than 2,000 RSVPs, the event on Wednesday reflected strong demand across Oakland for access to quality jobs and career pathways. Attendees participated in on-site recruitment, application support, and hands-on workshops designed to help job seekers navigate hiring processes and prepare for interviews.

Over the course of the day, employers and community partners engaged directly with residents in a welcoming, high-energy environment centered on opportunity and hope. Participating employers included EBMUD, Samuel Merritt University, the City of Oakland, BART, PG&E, AC Transit, East Bay Regional Parks District, Southwest Airlines, FedEx, and many others offering immediate openings and career pathways across sectors.

Workforce development partners Oakland Private Industry Council (OPIC) and Lao Family Community Development provided connections to résumé support, interview coaching, and individualized job search assistance throughout the event.

The strong turnout underscores a clear reality: Oakland residents are eager for pathways into meaningful work, and sustained investment in youth and workforce programs is essential.

That is why Mayor Lee has prioritized relaunching the Oakland Police Cadet Program and the Mayor’s Youth Employment and Education Program (MYEEP)—ensuring young people have early access to paid work experience, mentorship, and long-term career pathways, according to a City press statement.

“The turnout shows what we already know—Oaklanders are ready to work, ready to grow, and ready to build their futures here at home,” said Lee. “When we connect people directly to employers and invest in young people early, we are not just filling jobs—we are changing lives and strengthening our city’s future.”

The Hire Oakland job fair is part of the City’s broader effort to strengthen workforce pipelines, expand access to good-paying jobs, and ensure Oakland residents are first in line for local opportunity.

About Hire OaklandHire Oakland is a citywide workforce initiative led by the Office of Mayor Barbara Lee in partnership with City departments, workforce development organizations, and regional employers. The program connects Oakland job seekers to real-time hiring opportunities, training resources, and career pathways.