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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 an increase within the company tax charge.”

“We assist the Biden Administration’s deal with making daring investments in American infrastructure,” Bezos stated. “Each Democrats and Republicans have supported infrastructure previously, and it is the precise time to work collectively to make this occur. We acknowledge this funding would require concessions from all sides — each on the specifics of what is included in addition to the way it will get 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 scale back its corporate income tax invoice. The company fired back, saying, “we pay each penny we owe,” and that it had paid $2.6 billion in company taxes since 2016.
And once more final 12 months, then-Presidential candidate Biden said Amazon ought to “begin paying their taxes,” as a part of a broader critique of huge, profitable companies. Amazon has repeatedly stated that it follows all relevant tax legal guidelines.
The corporate additionally lately sparred with Sen. Elizabeth Warren, who has advocated for raising taxes on big corporations. Final month Warren stated in a tweet: “Big firms like Amazon report large earnings to their shareholders — however they exploit loopholes and tax havens to pay near nothing in taxes. That is simply not proper.”
Amazon responded to her, saying: “You make the tax legal guidelines @SenWarren; we simply comply with them. Should you do not just like the legal guidelines you have created, by all means, change them. Listed below are the information: Amazon has paid billions of {dollars} in company taxes over the previous 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.three billion.

Whereas 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 assist of climbing enterprise taxes.

Bezos stated in his assertion: “We look ahead to Congress and the Administration coming collectively to search out the precise, balanced answer that maintains or enhances U.S. competitiveness.”

And he isn’t alone. Rick Rieder, chief funding officer of worldwide fastened revenue for BlackRock, the world’s largest asset supervisor, stated rolling again Trump-era corporate tax cuts will not harm the financial system — and will truly be constructive for development.
Rieder told CNN Business last month that he thinks the US financial system can “positively” face up to larger company taxes, and advised that elevating the company charge may assist be certain that financial positive factors are distributed extra evenly amongst firms and staff.

“The US financial system is amazingly resilient,” he stated, “and in reality will carry out nicely once you get a few of this revenue redistribution and consumption at a better and a greater place, significantly for decrease and center revenue.”

–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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