Jeff Bezos supports corporate tax increase

Amazon’s founder and former Chief Executive has voiced his support for increasing taxes on U.S. businesses. The world’s richest man – according to the recently published Forbes list – has said he agrees with President Joe Biden’s push to raise the corporate tax rate from 21% to 28%.

The tax hike is set to fund much of the new administration’s stimulus and infrastructure plans. This massive spending plan is set to upgrade much of America’s infrastructure, including water pipes, roads, bridges, ports, and the internet.

Ironically, Joe Biden singled out Amazon when unveiling the proposal, stating that Amazon was an example of a company that was paying too little in corporate tax.

In a statement, Bezos said that he supported the president’s focus on infrastructure and called on a consensus to be formed between Democrats and Republicans, urging both sides to work together for the benefit of the whole country.

He went on to say – “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 we’re supportive of a rise in the corporate tax rate. We look forward to Congress and the Administration coming together to find the right, balanced solution that maintains or enhances U.S. competitiveness.”

Standing apart

Jeff Bezos’s stance sets him apart from other business leaders and Republican supporters. Powerful business lobbyists have spoken against the proposed increase, claiming that it would hurt economic growth.

Mr. Bezos stopped short of saying whether Amazon would support the other tax changes proposed by President Biden. These other changes are aimed at gleaning more tax from U.S. companies’ overseas operations. Included in this is the proposed Global Minimum Tax, which the U.S. would like to see pinned at 21%.

According to business and tax analysts, these changes are likely to face stronger opposition from businesses than the proposed rise to corporate taxes. The fact that Jeff Bezos remained tight-lipped on the subject supports this analysis.

According to the Institute of Taxation and Economic Policy, Amazon paid an effective tax rate of 9.4% in 2020. Despite supporting the increase, the company has come under much criticism for its tax practices. Just recently it has begun to push back against its critics.

When Senator Elizabeth Warren accused the company of exploiting loopholes to effectively pay “close to nothing” in taxes, Amazon tweeted a reply.

“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.”

If the tax changes get pushed through by the Biden administration, Amazon’s next tax bill will make for interesting reading.