Jeff Bezos, Amazon founder and CEO, endorsed President Joe Biden’s focus on building up the country’s infrastructure, including the corporate tax hike.
The billionaire posted his statement on the company’s website. It was significant as it came after Biden singled out the firm for criticism about how much it pays in federal taxes. Significantly, Biden unveiled last week the first piece of a massive two-part infrastructure package – the American Jobs Plan.
The package is likely to have wide-ranging effects on the U.S. economy. Notably, it involves federal spending to improve the nation’s aging roads, bridges, and ports, as well as clean-energy projects. Moreover, it includes broadband in rural areas, affordable housing initiatives, and funding for care workers.
Furthermore, funding for the package would come from a corporate tax increase that would offset the cost over 15 years. The tax rate for corporations would grow to 28%, up from 21%. For multinational companies, the Biden administration is seeking to put in place a 21% global minimum tax rate. This proposal was endorsed by Treasury Secretary Janet Yellen on Monday.
In 2020, Amazon reported paying $1.7 bn in federal taxes
Amazon, a $1.62 trillion firm, is a leading corporation to come out in support of the corporate tax increase.
U.S. President Joe Biden also plans to set a minimum U.S. tax on overseas corporate income and make it more difficult for corporations to shift earnings offshore.
As we remember, Amazon has long been under scrutiny for paying virtually no federal taxes in the U.S. for years. The giant company built an e-commerce empire that currently has a market value of approximately $1.6 trillion.
That has changed slightly in recent years as Amazon has become more profitable. In 2020, the company reported paying $1.7 bn in federal taxes on its U.S. income of $20.2 bn, working out to an effective tax rate of nearly 8%.