Corporate Tax

Bezos, CEO of Amazon, advocates widespread criticism and advocates a rise in US company tax

WASHINGTON (Reuters) – Inc supports a US corporate tax rate hike as part of an infrastructure overhaul, said Jeff Bezos, executive director of the largest US retailer, Tuesday after being told by the White House, Congress and Congress with dwindling Criticism had been faced on social media.

“We support the Biden Administration’s focus on bold investments in American infrastructure,” said Bezos in a blog post. “We understand that this investment will require concessions on all sides – both in terms of the details of the benefits included and in terms of the way in which they are paid for (we support an increase in the corporate tax rate).”

The largest online retailer in the US, often criticized in recent years for paying little or no US federal income tax, did not advocate increasing tax rates to any value.

The White House did not respond immediately.

Biden’s infrastructure plan is to raise the corporate tax rate from 21% to 28% and to revise tax law to address loopholes that allow companies to shift profits overseas

Biden said last week that Amazon is one of 91 Fortune 500 companies that “exploit various loopholes where they don’t pay a single penny in federal income tax,” in contrast to middle-class families who pay tax rates in excess of 20%.

Bezos is stepping down from his position as CEO in the third quarter of 2021.

After paying no federal income tax in 2017 or 2018, Amazon reported a current federal tax liability of $ 162 million for 2019 and a federal tax liability of $ 1.835 billion for 2020.

Biden’s predecessor Donald Trump and the Republican legislature cut the corporate rate from 35% to 21% in 2017. Trump repeatedly promised to tackle the nation’s crumbling infrastructure during his presidency, but never delivered.

The US Chamber of Commerce, the largest US corporation, called Biden’s proposed corporate tax hike last month “dangerously misguided” and warned it would “slow the economic recovery and make the US less competitive globally.”

In June 2019, Biden called Amazon and said no company making billions in profits should pay a lower tax rate than firefighters and teachers.

Reporting by David Shepardson; Arrangement by Leslie Adler and David Gregorio

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