Jeff Bezos Supports Increasing Corporate Taxes

Amazon (AMZN) CEO Jeff Bezos said in a statement Tuesday that the company “supports an increase in the corporate tax rate.”

“We support the Biden Administration’s focus on making bold investments in American infrastructure,” said Bezos. “Both Democrats and Republicans have supported infrastructure in the past, and the time is right to work together to make this happen. We recognize that this investment will require concessions from all sides, both in specifics of what is included and in how to pay. for. “

In 2019, then-former Vice President Joe Biden scream Amazon for its history of using tax credits and deductions to reduce its corporate income tax bill. The company responded by saying, “We pay every penny we owe” and that it had paid $ 2.6 billion in corporate taxes since 2016.
And again last year, then-presidential candidate Biden said Amazon should “start paying its taxes,” as part of a broader critique of successful big companies. Amazon has repeatedly said that it follows all applicable tax laws.
The company also recently clashed with Senator Elizabeth Warren, who has advocated raising taxes on large corporations. Last month, Warren said in a cheep: “Giant corporations like Amazon report huge profits to their shareholders, but they take advantage of loopholes and tax havens to pay next to nothing in taxes. That is not correct.”
Amazon replied, saying: “You make the tax laws @SenWarren; we just follow them. If you don’t like the laws you’ve created, change them by all means. Here are the facts: Amazon has paid billions of dollars in corporate taxes just in the last years “.
For fiscal years 2017 and 2018, Amazon’s financial statements showed that it expected to receive a money back from the federal government, not that it owed money in income taxes. For fiscal year 2019, Amazon said it owed more than $ 1 billion in federal income taxes, a figure that experts said was just over 1% of its profits.
In 2020, Amazon paid $ 1.7 billion in federal taxes, the company saying in his reply to Warren. His net income for the year was $ 21.3 billion.

While it has already drawn some criticism, the Biden administration’s infrastructure plan may be compelling enough to convince more corporate leaders to sign on in support of increasing business taxes.

Bezos said in his statement: “We hope that Congress and the Administration will come together to find the correct and balanced solution that will maintain or improve the competitiveness of the United States.”

And you are not alone. Rick Rieder, director of global fixed income investments at BlackRock, the world’s largest asset manager, said that reversing the Trump-era corporate tax cuts will not hurt the economy and could actually be positive for growth.
Rieder told CNN Business last month that he believes the US economy can “definitely” bear higher corporate taxes, and suggested that raising the corporate rate could help ensure that economic gains are distributed more equitably between corporations and workers.

“The US economy is incredibly resilient,” he said, “and it will actually do well when it gets some of this redistribution of income and consumption in a better and easier place, particularly for the low and middle income.”

– CNN’s Brian Fung and Matt Egan contributed to this report.


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