Info-Tech

Amazon owner Jeff Bezos supports tax rise on companies

Amazon owner Jeff Bezos supports the raising of the taxes on the US companies. Well, the world’s richest man has come up with the US President Joe Biden who is pushing the rise of the corporate rate from 21% to 28%.

However, this rise might pay for a massive spending plan for upgrading America’s roads, ports, water pipes, and internet. Through his speech he spoke about the proposal, Mr. Biden pointed out Amazon as an example of a company that pays less.

Mr. Bezos mentioned in his statement that Amazon supports Mr. Biden’s “focus on infrastructure” called on Democrats and Republicans for “working together” and reaching a compromise.

Mr. Bezos exclaimed in the statement, “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.”

Questions that remained unanswered

However, amazon’s position keeps it apart from the Republicans and top business lobbies that have spoken against the tax enhancement which they have claimed might hurt the economic growth.

Mr. Bezos in the statement mentioned whether Amazon may support the White House’s other tax proposals beyond the surge to the corporate rate.

Moreover, those who have aimed at capturing more tax from profits have earned by the US companies overseas that involve working with other countries and establishing a global minimum tax. The analyst mentioned that the changes to those rules are now likely to stir stronger opposition from businesses which is rising in the corporate rate that many companies don’t face.

According to the Institute on Taxation and Economy Policy, in 2020, Amazon has paid an effective federal income tax rate of around 9.4%.

Although it has long faced attacks for its tax practices, Amazon pushes back strongly against the critics in the current weeks.

On Twitter, it sparred with Senator Elizabeth Warren currently mentioned that Senator Elizabeth Warren currently accused the firm of exploiting a corporate loophole and paying “close to nothing” in tax while she was discussing her own tax plans.

The company mentioned that it had reported around $1.7bn in federal tax expenses last year and invested around $350bn. However, Amazon’s investment has helped in reducing the tax bill which is under the rules aimed at incentivizing firms for the activities like development and research.

The company mentioned, “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.”

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