Amazon CEO Bezos, Stung by Broad Criticism, Endorses U.S. Company Tax Hike
By David Shepardson
“We help the Biden Administration’s concentrate on making daring investments in American infrastructure,” Bezos mentioned in a weblog publish. “We acknowledge this funding would require concessions from all sides — each on the specifics of what’s included in addition to the way it will get paid for (we’re supportive of an increase within the company tax price).”
The biggest on-line U.S. retailer, which has been broadly criticized lately for paying little or no U.S. federal revenue tax, didn’t endorse elevating charges to a particular determine.
The White Home didn’t instantly remark.
Biden’s infrastructure plan proposes growing the company tax price to twenty-eight% from 21% and would revise the tax code to shut loopholes that enable corporations to maneuver income abroad
Biden mentioned final week Amazon was one in all 91 Fortune 500 corporations that “use varied loopholes the place they pay not a single solitary penny in federal revenue tax,” in sharp distinction to center class households paying over 20% tax charges.
Bezos is stepping down from the CEO function throughout third quarter of 2021.
After paying no federal revenue tax in 2017 or 2018, Amazon reported a $162 million present U.S. federal tax legal responsibility for 2019 and $1.835 billion U.S. federal tax legal responsibility for 2020.
Biden’s predecessor, Donald Trump, and Republican lawmakers reduce the company price to 21% in 2017 from 35%. Trump repeatedly promised to deal with the nation’s crumbling infrastructure throughout his presidency however by no means delivered on that.
The U.S. Chamber of Commerce, the most important U.S. enterprise group, final month referred to as Biden’s proposed hike in company taxes “dangerously misguided” and warned it could “sluggish the financial restoration and make the U.S. much less aggressive globally.”
In June 2019, Biden named Amazon and mentioned no firm making billions in income ought to pay a decrease tax price than firefighters and lecturers.
(Reporting by David Shepardson; Modifying by Leslie Adler and David Gregorio)