Jeff Bezos backs Biden for higher taxes for US companies

Photo: AP Jeff Bezos

Amazon founder and majority shareholder Jeff Bezos has vowed support for the plan of US president Joe Biden to raise taxes for US companies to compensate for record high stimulus packages, BBC reported. The comments by the world's richest man come as Biden pushes to raise the corporate rate from 21% to 28%.The rise would help pay for a massive spending plan to upgrade America's roads, ports, water pipes and internet.In his speech unveiling the proposal, Biden singled out Amazon as an example of a company that pays too little.

The statement by Bezos said Amazon supported Biden's "focus on infrastructure" and called on Democrats and Republicans to "work together" and reach a compromise. "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)," Bezos said in the statement.

"We look forward to Congress and the Administration coming together to find the right, balanced solution that maintains or enhances US competitiveness."

Amazon's position sets it apart from that of Republicans and top business lobbies, which have already spoken out against the tax increases, which they claim would hurt economic growth. In his statement, Bezos did not say whether Amazon would support the White House's other tax proposals beyond the increase to the corporate rate.

In 2020, Amazon paid an effective federal income tax rate of 9.4%, according to the Institute on Taxation and Economic Policy. Though it has long faced attacks for its tax practices, Amazon has pushed back more strongly against critics in recent weeks.

The company said it had reported $1.7bn in federal tax expense last year and invested $350bn. Amazon's investments have helped reduce its tax bill under rules aimed at incentivising firms for activities like research and development.

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