Corporate Tax

Elizabeth Warren saves on corporate taxes and “snotty tweets” with Amazon

Elizabeth Warren had it with Amazon “snotty tweets”.

The Massachusetts senator and major tech critic got into a bit of a back-and-forth with Amazon’s increasingly combative Twitter account on Thursday night after calling the e-commerce giant for “manipulating tax laws to avoid paying their fair share” would have. And while it was hardly the first time Warren singled out Amazon, her tweet sparked a sharp reaction from the Amazon News account.

“You make the tax laws, @SenWarren; We just follow them, ”tweeted the company. “If you don’t like the laws you made, be sure to change them.”

1/3 They make the tax laws @SenWarren; we just follow them. If you don’t like the laws you made, by all means change them. Here are the facts: Amazon has paid billions in corporate taxes in the last few years alone.

– Amazon News (@amazonnews) March 26, 2021

Warren would like to do just that. In the video she posted on Twitter, the Senator says she plans to introduce a bill to tax the “book profits” of large corporations, similar to what President Joe Biden has proposed. While companies like Amazon say they abide by the law, many – and perhaps Amazon especially – have been able to significantly reduce their corporate tax liability through a variety of tactics, such as: B. by transferring past operating losses to offset current profits and international profits, relocating and using tax credits for research and development.

Warren says her book profit tax return would fill some of those “loopholes”. As she first pointed out during her presidential campaign, the proposal would impose a 7 percent tax on “every dollar of profit over $ 100 million” that companies report to their investors, as opposed to what is ultimately reported to the government.

Amazon announced Thursday night that the company paid $ 1.7 billion in federal taxes in 2020 – that’s still just 7 percent of the company’s pretax income of $ 24.2 billion last year, well below that Corporate tax rate of 21 percent (company files suggest this) no federal income tax paid in 2017 and 2018). The company also argued that it generated $ 18 billion in local sales taxes and used the country’s investment tax credits to create hundreds of thousands of new jobs with a minimum starting wage of $ 15 an hour.

“Can we raise the federal minimum wage to $ 15 while you work on changing the tax code?” The company snapped.

3/3 What did we do about it? Investments of $ 350 billion since 2010 and 400,000 new jobs in the US last year alone. And while you’re working on changing the tax code, can we please raise the federal minimum wage to $ 15?

– Amazon News (@amazonnews) March 26, 2021

In response, Warren argued that Amazon’s “armies of lawyers and lobbyists” were the cause of the current tax laws, not them.

“I did not write the loopholes you are exploiting,” said the Cambridge Democrat, adding that it struggled to get Amazon to pay its “fair share”, amid their other ongoing struggles with the company wanted to dissolve them.

Thursday’s exchange came as Amazon, which promotes its “industry-leading” wages and benefits, fought a workers’ union movement in Alabama. It also comes less than a day after the Amazon News account got into a Twitter argument with a Wisconsin congressman over a report that one of the company’s delivery drivers regularly urinated in a plastic bottle due to a strenuous 14-hour shift.

“Bet I’ll fight to get you to pay your fair share,” Warren wrote. “And fight your union destruction. And fight to break big tech so you aren’t powerful enough to pester senators with snotty tweets. “

I didn’t write the loopholes that you take advantage of, @amazon – your armies of lawyers and lobbyists did. But you bet I’ll fight to get you to pay your fair share. And fight your union destruction. And fight to break big tech so you aren’t powerful enough to pester senators with snotty tweets. https://t.co/3vCAI93MST

– Elizabeth Warren (@SenWarren) March 26, 2021

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