Amazon founder and CEO Jeff Bezos endorsed Joe Biden’s plan to increase corporate taxes after the U.S. president recognized the company for its contributions to federal coffers.
Mr. Bezos, the richest man in the world who must take more than one back seat in the company later in the year, released a statement via the company’s website last night to say it supports the White House in its $ 2.3 billion goal to strengthen the country’s infrastructure .
Basically there was support for the proposals to help pay for it.
The president has proposed raising the corporate tax rate to 28% from 21% to account for most of the cost, but he faces opposition from businesses, Republicans and Democrats on the grounds that it is likely to be counterproductive for economic growth.
Mr. Biden can use Amazon’s support as evidence to undermine that argument.
While announcing the massive infrastructure investment plan Last week, he said of the company’s tax planning, “Amazon uses various loopholes to avoid paying a single dime in federal income tax.
“I don’t want to punish them, but it’s just plain wrong. It’s just plain wrong. Firefighter, teacher, paying 22% [tax], Amazon and 90 other big companies paying no federal tax? I will put an end to this. “
Mr. Bezos said in his statement: “We support the focus of the Biden administration on bold investments in US infrastructure.
“Democrats and Republicans have supported infrastructure in the past, and now is a good time to work together to make it happen.
“We recognize that this investment will require concessions from all sides, both on the details of what is included and how it is paid (we are in favor of an increase in the corporate tax rate).
“We look forward to Congress and the administration coming together to find the right balanced solution that maintains or enhances the competitiveness of the United States.”
The statement was careful not to endorse the president’s infrastructure plan, but rather to focus on the issue and signal a willingness to contribute more to the public purse.
The proposed White House tax shake would also effectively set a minimum tax rate for American companies on their global profits to help solve the thorny international problem of evasion.
Last year, Amazon said it paid $ 1.7 billion in federal taxes on its $ 20.2 billion U.S. income, which works out to an effective tax rate of around 8%.