Home » Jeff Bezos comes out in help of elevated company taxes

Jeff Bezos comes out in help of elevated company taxes

by newsking24

Amazon (AMZN) CEO Jeff Bezos mentioned in a assertion 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 mentioned. “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 known as out Amazon for its historical past of utilizing tax credit and deductions to cut back its company revenue tax invoice. The firm fired again, saying, “we pay every penny we owe,” and that it had paid $2.6 billion in company taxes since 2016.
And once more final yr, then-Presidential candidate Biden mentioned Amazon ought to “start paying their taxes,” as a part of a broader critique of enormous, profitable companies. Amazon has repeatedly mentioned that it follows all relevant tax legal guidelines.
The firm additionally not too long ago sparred with Sen. Elizabeth Warren, who has advocated for elevating taxes on large firms. Last month Warren mentioned 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 anticipated to obtain a reimbursement from the federal authorities, not that it owed cash in revenue tax. For the 2019 tax yr, Amazon mentioned it owed greater than $1 billion in federal revenue tax.
In 2020, Amazon paid $1.7 billion in federal taxes, the corporate mentioned in its response to Warren. Its internet revenue for the yr was $21.three billion.

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

Bezos mentioned 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 is not alone. Rick Rieder, chief funding officer of worldwide fastened revenue for BlackRock, the world’s largest asset supervisor, mentioned rolling again Trump-era company tax cuts will not harm the financial system — and will truly be optimistic for development.
Rieder instructed CNN Business final month that he thinks the US financial system can “definitely” stand up to greater company taxes, and steered that elevating the company price might assist be certain that financial positive aspects are distributed extra evenly amongst firms and employees.

“The US economy is amazingly resilient,” he mentioned, “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 proportion of Amazon’s 2019 revenue it owed in whole US federal revenue taxes that yr.

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