CorporateTax

Bezos pledges support of Biden’s tax hike

The statement comes after the President criticised Amazon for ‘not paying a single solitary penny in federal income tax’

Amazon has stated it is “supportive” of a rise in America’s corporate tax rate after facing criticism from President Biden that the company did not pay enough tax. 

It comes as the President has proposed hiking the corporate tax rate from 21% to 28% to allow for increased investment into the nation’s infrastructure. 

Whilst announcing his $2.3tn infrastructure investment plan last week, Biden accused Amazon of using “various loopholes so they pay not a single solitary penny in federal income tax”.

Biden said: “I don’t want to punish them, but that’s just wrong. That’s just wrong. Fireman, teacher, paying 22%, Amazon and 90 other major corporations paying zero in federal taxes? I’m going to put an end to that.”

In a statement released yesterday (April 6), Jeff Bezos, founder and CEO, Amazon 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.”

In addition to higher corporate taxes, Biden’s $2.3tn infrastructure package outlines changes to remove loopholes used by some US businesses to move profits overseas to lower tax jurisdictions. To tackle this, Biden is proposing to double the Global Intangible Low Tax Income tax from 10.5% to 21%. 

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