Amazon (Amazon) CEO Jeff Bezos (Jeff Bezos) In a statement on Tuesday, the company “supports raising corporate tax rates.”
Bezos said: “We support the Biden administration’s focus on bold investment in American infrastructure.” “In the past, Democrats and Republicans supported infrastructure. Now is the time to work together to achieve this goal. We recognize Until then, this investment will require concessions from all parties-including specific content and how to obtain payment in order.”
In 2019, then Vice President Joe Biden called on Amazon to use tax credits and deductions to reduce the history of corporate income tax bills. The company fought back, saying, “We have to pay back every penny,” and has paid $2.6 billion in corporate taxes since 2016.
Last year, the then presidential candidate Biden once again stated that Amazon should “start paying taxes” as part of widespread criticism of large successful companies. Amazon has repeatedly stated that it complies with all applicable tax laws.
The company has also recently kept in touch with Senator Elizabeth Warren, who has advocated raising taxes for large companies. Warren said in a tweet last month: “Large companies like Amazon report huge profits to their shareholders-but they use loopholes and tax havens to pay almost no taxes. That’s not right.”
Amazon responded to this by saying: “You make tax laws @SenWarren; we just follow them. If you don’t like the laws you make, you must change them. This is a fact: Amazon has paid billions of dollars only in the past few years. The company tax was increased by 10% in the middle of the year.”
For the 2017 and 2018 tax years, Amazon’s financial documents show that it hopes to get money back from the federal government instead of owing income taxes. Amazon said that in the 2019 tax year, it owed more than $1 billion in federal income taxes. Experts on this figure say that its profits are only slightly more than 1% of its profits.
In response to Warren, the company said that in 2020, Amazon paid $1.7 billion in federal taxes. Its net income that year was 21.3 billion U.S. dollars.
Although the Biden government’s infrastructure plan has attracted some criticism, it is attractive enough to persuade more business leaders to sign up to support the increase in business tax.
Bezos said in the statement: “We expect Congress and the government to work together to find the correct and balanced solution to maintain or enhance the competitiveness of the United States.”
And he is not alone. Rick Rieder, chief investment officer of global fixed income at BlackRock, the world’s largest asset management company, said that the abolition of the Trump-era corporate tax cuts will not harm the economy and is actually positive for growth. .
Rieder told CNN Business last month that he believes that the U.S. economy can “absolutely” bear higher corporate taxes, and suggested that raising the corporate tax rate can help ensure that the economic benefits are between the company and the workers. equally distributed.
He said: “The U.S. economy is amazingly resilient. In fact, when you get a portion of income distribution and consumption in easier and better places, especially low- and middle-income areas, you will perform well.”
-CNN’s Brian Fung and Matt Egan contributed to this report