Amazon CEO Jeff Bezos said he supported raising taxes on US companies.
The comments of the world’s richest man come as US President Joe Biden wants to increase corporate tax rate from 21% to 28%.
These increases will help pay for a larger spending plan to improve roads, ports, water pipes and the US Internet.
Focus On Infrastructure
In his speech introducing the proposal, Mr Biden cited Amazon as an example of a company that pays very little.
Mr Bezos’ statement said Amazon supported Mr Biden’s “infrastructure focus” and urged Democrats and Republicans to “work together” and reach an agreement.
“We recognize that this investment will require approval from all parties – both in terms of specifics of these inputs and how to pay (we support corporate tax increases),” Mr Bezos said in a statement.
“We look forward to the Congress and the Administration coming together to find a viable, balanced solution that keeps or enhances U.S. competitiveness.”
Opposition
Amazon’s position makes it different from those of the Republicans and top business institutions, which have spoken out against tax hikes, which they say could hurt economic growth.
In a statement, Mr Bezos did not say whether Amazon would support other White House tax proposals beyond the increase to the corporate rate.
Those are aimed at capturing more tax from profits earned by US companies overseas, including by working with other countries to establish a global minimum tax.
Analysts say the changes to those rules are likely to provoke stronger opposition from businesses than the rise in corporate, which many companies do not face, thanks to deductions and other credits.
By 2020, Amazon has paid the appropriate state tax rate of 9.4%, according to the Institute on Taxation and Economic Policy.
Although it has long been plagued by attacks on its tax practices, Amazon has pushed back firmly against critics in recent weeks.
Amazon’s Tax Evasion?
On Twitter, a dispute arose with Senator Elizabeth Warren, who recently accused the company of exploiting corporate positions and paying “close to no taxes”.
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.
“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,” the company said.
