WASHINGTON (AP) – Amazon founder and CEO Jeff Bezos on Tuesday endorsed President Joe Biden’s focus on building the nation’s infrastructure, saying the company even supports an increase in the corporate tax rate to help turn it off.
Bezos’s statement, posted on the company’s website, was notable because it came after Biden criticized the company about how much it pays in federal taxes when it recently presented its $ 2.3 billion infrastructure proposal.
Biden has proposed raising the US corporate tax rate to 28% from 21% to help pay for his plan, an idea Republican leaders see as detrimental to economic growth. Democrats are sure to cite the support of individual companies to undermine that argument.
“We recognize that this investment will require concessions from all sides, both in the specifics of what is included and how it is paid for (we support an increase in the corporate tax rate),” Bezos wrote. “We hope that Congress and the Administration will come together to find the correct and balanced solution that will maintain or improve America’s competitiveness.”
Bezos was careful not to endorse a specific plan. Rather, he said, “we support the Biden Administration’s approach to making bold investments in American infrastructure.”
The company would benefit from investments made in roads, bridges, airports and broadband. Business groups have joined the federal government’s call for more investment in public works, but have generally resisted Biden’s call to increase corporate income tax, and the U.S. Chamber of Commerce . to pay for the infrastructure. “
In addition to partially undoing the corporate tax cut implemented during President Donald Trump’s administration, Biden also wants to establish a minimum US tax on corporate income abroad and make it more difficult for companies to move their profits abroad.
Amazon has long been criticized for paying virtually no federal taxes in the US for years, even as it built an e-commerce empire that currently has a market value of $ 1.6 trillion.
That has changed slightly in recent years as the Seattle company has become more profitable. Last year, it reported paying $ 1.7 billion in federal taxes on its US income of $ 20.2 billion, which equates to an effective tax rate of about 8%.
AP business writer Michael Liedtke in San Ramon, California, contributed to this report.
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