Big Tech’s Tax Trick: How Amazon, Apple, and More Skipped $278 Billion

What Is Going On?

Some of the biggest companies in the world — like Amazon, Apple, Meta (the company that owns Facebook), Alphabet (Google’s parent company), Netflix, and Microsoft — are being called the “Silicon Six.”

These six companies make a lot of money. But now, people are saying they did not pay their fair share of taxes. In fact, a report says they may have avoided paying $278 billion in U.S. corporate taxes over the past 10 years. That’s a huge amount!

Let’s break this down so it’s easy to understand.

What Are Corporate Taxes?

When people work, they pay taxes on their income. Companies also pay taxes on the money they make. These are called corporate taxes.

In the U.S., the government says businesses should pay around 21% of their profits in taxes. This money goes toward things like schools, roads, and healthcare.

But here’s the twist: big companies often don’t pay that full amount.

How Did the “Silicon Six” Avoid Taxes?

These tech giants used legal tricks to lower their tax bills. That means they didn’t break the law — but they found ways to pay less than most companies or people do.

Here’s how they did it:

Moving Profits Overseas: Some companies told the government that they made their money in other countries with lower tax rates. For example, Ireland only charges about 12.5% in taxes.
Smart Accounting: They moved money around in a way that looked like they made less profit in the U.S., so they paid fewer taxes here.
Using Tax Loopholes: These are special rules in the tax law that let businesses lower their taxes legally.

How Much Did They Actually Pay?

According to reports, these six companies together made over $1.3 trillion in profit from 2014 to 2023. But they paid only about 60% of what they were supposed to pay in taxes.

Instead of paying the full amount, they saved a huge chunk — around $278 billion.

Imagine if you owed $10 for lunch and only paid $4. That’s kind of what these companies did — but on a much, much bigger scale.

Why Does This Matter?

That money could have helped pay for a lot of things, like:

Building new schools
Fixing roads and bridges
Helping families in need
Providing better healthcare
Protecting the environment

When big companies don’t pay their share, everyone else pays more. That means regular people and small businesses often have to make up the difference.

What Are People Saying?

Many people are upset. They think it’s unfair that big companies get away with this while regular folks can’t.

A group called the Fair Tax Foundation said that these tech companies talk a lot about “doing good” — but they aren’t helping the country by skipping their tax bills.

Some lawmakers and leaders are also calling for changes. They want to close the loopholes and make sure these companies pay what they owe.

What Do the Companies Say?

The “Silicon Six” say they follow the law. They say they use smart accountants and lawyers to follow all the rules. And they say they do pay taxes — just not always in the U.S.

Some of them also say they give back in other ways, like:

Creating jobs
Donating to charities
Investing in clean energy
Supporting local businesses

But many people say that’s not enough. Paying fair taxes is one of the best ways to support a country.

What Can Be Done?

There are a few ideas on how to fix this problem:

Global Tax Rules: Leaders around the world are talking about making a global minimum tax. That means big companies would have to pay a fair amount, no matter where they say their profits are made.
Closing Loopholes: Some lawmakers want to fix the laws that allow these tricks.
More IRS Funding: Giving the IRS more money and tools to check what big companies are doing could help stop tax avoidance.

What Should You Think?

This story is about fairness. Most people pay their taxes. And they expect big companies — especially ones that make billions — to do the same.

Learning about taxes might not sound fun, but it affects everything around us. Schools, parks, roads, and even hospitals depend on tax money.

When big businesses skip out, everyone else pays the price.

Final Thoughts

The “Silicon Six” are some of the richest and most powerful companies in the world. But even they need to follow the rules. Paying taxes helps build strong communities and a better country for everyone.

It’s okay to use smart business tools — but skipping out on taxes that help families and kids just isn’t right.

Let’s hope leaders work together to make things more fair. Because everyone — big or small — should pay their part.