Jeff Bezos backs Joe Biden's corporate tax rate hike, endorses 'bold investments'

Amazon founder and CEO Jeff Bezos on April 6 voiced the company’s support to US President Joe Biden administration’s developments in building up the nation’s infrastructure along with the hike in the corporate tax rate. Bezos’ statement on Tuesday was more significant because Biden had earlier singled out the e-commerce giant for criticism over how much it pays in federal taxes when he unveiled the $2.3 trillion infrastructure proposal. 

US President has proposed the hike in US corporate tax rate from 21% to 28% to contribute to his ambitious plans regarding the American infrastructure. Biden’s plan of revamping the infrastructure in the United States is being panned by Republican lawmakers as harmful to economic growth. However, Democrats will definitely cite backing from individual companies to undercut the rival political party’s argument. 

Bezos said, “We support the Biden Administration’s focus on making bold investments in American infrastructure. Both Democrats and Republicans have supported infrastructure in the past, and it’s the right time to work together to make this happen.”

“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,” he added.

‘Amazon should start paying their taxes’

In May 2020 when Biden was apparent Democratic presidential nominee, he told CNBC that “Amazon should start paying their taxes.” In the televised interview at the time, Biden said, “I don’t think any company, I don’t give a damn how big they are, the Lord Almighty, should absolutely be in a position where they pay no tax and make billions and billions and billions of dollars, No. 1.”

Now, while unveiling his American infrastructure plans, the US President did not elaborate on what tax rates he finds appropriate but it would further fuel funds to his $2 trillion American Jobs Plan. According to filings with the Security and Exchange Commission, Amazon in 2020 reportedly paid $1.8 billion in federal taxes which was nearly 8% of the $22 billion profit that the company booked last year.

Image credits: AP