How Nike Will Never Pay Taxes

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💸 In 2020 Nike made a profit of close to $3 billion, yet they paid $0 in federal tax. What? Nike has been ducking and weaving around tax laws in order to keep as much of their profit as possible, and between 2018 and 2020, didn’t pay a single dollar. In fact, they received close to $750 million in tax rebates! This is how Nike, thanks to a tiny island in the Atlantic, pays almost no taxes.

🎬 In this video, we will cover:
0:00 - Intro
0:36 - Nike’s game of Dodgeball
5:04 - Offshoring
7:18 - Sponsor
8:41 - Race to the Bottom

📚 Sources:

[1] Nike has paid no federal income taxes for the past three years
https://www.wweek.com/news/business/2021/04/03/nike-has-paid-no-federal-income-taxes-for-the-past-three-years/

[2] Apple & Nike avoid new tax on stock buybacks by speeding them up
https://news.bloombergtax.com/daily-tax-report/apple-nike-avoid-new-tax-on-stock-buybacks-by-speeding-them-up

[3] No federal taxes for dozens of big profitable companies
https://www.nytimes.com/2021/04/02/business/economy/zero-corporate-tax.html

[4] Nike doesn't dispute it paid 0 in federal income tax
https://itep.org/nikes-tax-avoidance-response-does-not-dispute-it-paid-0-in-federal-income-tax/

[5] How companies like amazon nike and fedex avoid paying federal taxes
https://www.cnbc.com/2022/04/14/how-companies-like-amazon-nike-and-fedex-avoid-paying-federal-taxes-.html

[6] EU Attempting to Close Tax Loopholes
https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32016L1164

[7] The Anti Tax Avoidance Directive
https://taxation-customs.ec.europa.eu/anti-tax-avoidance-directive_en

[8] Ireland Tax Rate - 12%
https://www.revenue.ie/en/companies-and-charities/corporation-tax-for-companies/corporation-tax/basis-of-charge.aspx

[9] US Corporate Tax Rate - 21% in the lowest state, some are as high as 30%
https://taxfoundation.org/data/all/state/combined-federal-state-corporate-tax-rates-2022/

[10] What is a Tax Rebate?
https://www.investopedia.com/terms/t/tax-refund.asp

[11] Nike Investor Profits
https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2023/NIKE-Inc.-Reports-Fiscal-2023-Fourth-Quarter-and-Full-Year-Results/default.aspx

[12] Nike Gross Profit
https://www.macrotrends.net/stocks/charts/NKE/nike/gross-profit

[13] Nike Swoosh
https://finance.yahoo.com/news/dutch-legal-trick-nike-used-165701810.html

[14] Tax Credit: What is it, How it Works
https://www.investopedia.com/terms/t/taxcredit.asp

[15] Nike shifted billions in profits from Europe to tax-free Bermuda, Paradise Papers leak shows
https://www.cbc.ca/news/business/nike-tax-avoidance-tax-loophole-netherlands-bermuda-1.4380596

[16] Explaining the Trump Tax Reform Plan
https://www.investopedia.com/taxes/trumps-tax-reform-plan-explained/

[17] Cares Act
https://en.wikipedia.org/wiki/CARES_Act

[18] Biden Won a Global Tax Rate, Now Americans wonder if it was a good idea.
https://www.washingtonpost.com/business/2023/07/03/global-minimum-tax-american-businesses/

[19] A race to the bottom - Companies attracting foreign companies
https://policy-practice.oxfam.org/resources/tax-battles-the-dangerous-global-race-to-the-bottom-on-corporate-tax-620159/

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Видео How Nike Will Never Pay Taxes канала Dollar Stories