Bezos, one of the world’s richest men and founder as well as chief executive of online giant Amazon, said he agrees with President Biden’s idea to improve America’s aging infrastructure.
On Tuesday, Bezos said Amazon supports President Biden’s “idea of raising corporate taxes to fund infrastructure.” He said Amazon welcomes the Biden administration’s “strong focus on infrastructure development. The statement from Bezos was published on Amazon’s official website. A few days ago, President Biden criticized the e-tailing giant Amazon for its “zero tax” practices.
Biden said he wants to end the “zero tax” phenomenon for large companies and raise corporate taxes to 28 percent from the current 21 percent to fund his $2.3 trillion infrastructure plan.
Last month, Biden said, based on a report due out in 2019, that Fortune 500 companies, including Amazon, don’t pay a penny in federal taxes, “and that’s wrong.” However, the data cited by Biden appears to be outdated. since 2019, Seattle-based Amazon has been improving its earnings and therefore has paid federal taxes. According to the statement in question, Amazon paid $1.7 billion in federal taxes last year, compared to its $20.2 billion in operating income within the U.S. during the same period, which equates to an 8 percent tax rate.
How Bezos sees Biden’s infrastructure plan
Bezos was more cautious in his stance, avoiding expressing support or opposition to a specific program. He said, “We hope the administration and Congress can find a correct and balanced program to safeguard and enhance U.S. competitiveness.” Bezos, 57, added: “We are clear that this investment plan will require compromise concessions from all sides, both in the details of the investment and in the way it will be funded, which will require further discussion.”
Amazon is the world’s largest online retail platform and a world leader in delivery services. Amazon will also benefit from the U.S. government’s investment in building roads, bridges, airports, and broadband.
How have other businesses reacted?
The business community has also demanded that the U.S. government increase public spending, but they also oppose Biden’s plan to raise corporate taxes overall. The U.S. Chamber of Commerce called the tax increase “extremely dangerous and misleading.”
Biden also advocates setting a minimum tax rate on the overseas income of U.S. companies. This would make it difficult for high-tech giants, including Amazon and Google, to avoid the U.S. tax regime by shifting earnings overseas in the future.
Recent Comments