Jeff Bezos comes out in assist of elevated company taxes

Jeff Bezos comes out in support of increased corporate taxes

2021-04-07 20:20:26

Amazon (AMZN) CEO Jeff Bezos mentioned in a assertion Tuesday that the corporate is “supportive of an increase within the company tax price.”

“We assist the Biden Administration’s deal with making daring investments in American infrastructure,” Bezos mentioned. “Each Democrats and Republicans have supported infrastructure up to now, and it is the correct 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 referred to as out Amazon for its historical past of utilizing tax credit and deductions to scale back its company revenue tax invoice. The firm fired again, 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 mentioned Amazon ought to “begin paying their taxes,” as a part of a broader critique of huge, profitable companies. Amazon has repeatedly mentioned that it follows all relevant tax legal guidelines.
The corporate additionally lately sparred with Sen. Elizabeth Warren, who has advocated for elevating taxes on massive companies. Final month Warren mentioned in a tweet: “Big companies 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. When you do not just like the legal guidelines you have created, by all means, change them. Listed below are the details: 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 anticipated to obtain a refund from the federal authorities, not that it owed cash in revenue tax. For the 2019 tax 12 months, 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 12 months was $21.3 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 mountaineering enterprise taxes.

Bezos mentioned in his assertion: “We stay up for Congress and the Administration coming collectively to seek out the correct, balanced answer that maintains or enhances U.S. competitiveness.”

And he isn’t alone. Rick Rieder, chief funding officer of world fastened revenue for BlackRock, the world’s largest asset supervisor, mentioned rolling again Trump-era company tax cuts will not damage the economic system — and will truly be optimistic for progress.
Rieder instructed CNN Enterprise final month that he thinks the US economic system can “undoubtedly” face up to increased company taxes, and prompt that elevating the company price may assist make sure that financial positive factors are distributed extra evenly amongst companies and staff.

“The US economic system is amazingly resilient,” he mentioned, “and in reality will carry out effectively while you get a few of this revenue redistribution and consumption at a neater and a greater place, notably 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 whole US federal revenue taxes that 12 months.

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