Zoom’s pandemic popularity saw company profits increase by more than 4,000 per cent yet it has paid no federal corporate income tax, according to a new report.
Zoom’s video conferencing platform was widely used by remote workers and school children across the US due to Covid social distancing and quarantine measures.
“The immediate shift to online activity explains the company’s unprecedented income growth.
For many, Zoom has become a ubiquitous daily meeting space, both for work, class instruction, family gatherings and evening happy hours,” said an ITEP report.
“But why was the company’s income bonanza not matched by at least a token federal tax bill?.
Zoom’s income tax reconciliation says it reduced its worldwide income taxes by $300m in 2020 using stock-based compensation.”.
And the report added: “The company appears to have enjoyed tax benefits from accelerated depreciation and research and development tax credits. »