Jeff Bezos comes out in support of increased corporate taxes

Amazon (AMZN) CEO Jeff Bezos stated in a statement Tuesday that the corporate is “supportive of a rise in the corporate tax rate.”

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

In 2019, the then-former Vice President Joe Biden called out Amazon for its historical past of utilizing tax credit and deductions to cut back its corporate income tax invoice. The company fired back, saying, “we pay every penny we owe,” and that it had paid $2.6 billion in corporate taxes since 2016.
And once more final 12 months, then-Presidential candidate Biden said Amazon ought to “start paying their taxes,” as half of a broader critique of giant, profitable companies. Amazon has repeatedly stated that it follows all relevant tax legal guidelines.
The firm additionally just lately sparred with Sen. Elizabeth Warren, who has advocated for raising taxes on big corporations. Last month Warren stated in a tweet: “Giant corporations like Amazon report huge profits to their shareholders — but they exploit loopholes and tax havens to pay close to nothing in taxes. That’s just not right.”
Amazon responded to her, saying: “You make the tax laws @SenWarren; we just follow them. If you don’t like the laws you’ve created, by all means, change them. Here are the facts: Amazon has paid billions of dollars in corporate taxes over the past few years alone.”
For the 2017 and 2018 tax years, Amazon’s monetary filings confirmed that it expected to receive money back from the federal authorities, not that it owed cash in revenue tax. For the 2019 tax 12 months, Amazon said it owed greater than $1 billion in federal revenue tax.
In 2020, Amazon paid $1.7 billion in federal taxes, the corporate said in its response to Warren. Its net income for the year was $21.3 billion.

While it has already drawn some criticism, the Biden administration’s infrastructure plan could also be compelling sufficient to persuade extra corporate leaders to signal on in support of mountain climbing enterprise taxes.

Bezos stated in his assertion: “We look forward to Congress and the Administration coming together to find the right, balanced solution that maintains or enhances U.S. competitiveness.”

And he isn’t alone. Rick Rieder, chief funding officer of world mounted revenue for BlackRock, the world’s largest asset supervisor, stated rolling again Trump-era corporate tax cuts will not harm the economic system — and will really be optimistic for development.
Rieder told CNN Business last month that he thinks the US economic system can “definitely” face up to increased corporate taxes, and urged that elevating the corporate price may assist be sure that financial beneficial properties are distributed extra evenly amongst companies and employees.

“The US economy is amazingly resilient,” he stated, “and in fact will perform well when you get some of this income redistribution and consumption at an easier and a better place, particularly for lower and middle income.”

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

–Correction: An earlier model of this story misstated the share of Amazon’s 2019 revenue it owed in complete US federal revenue taxes that 12 months.

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