Amazon founder and CEO Jeff Bezos
Mark Ralston | AFP | Getty Images
Amazon CEO Jeff Bezos on Tuesday expressed support for raising corporation tax, but stopped saying he supports President Joe Biden’s plan for the increase.
“We support the Biden administration’s focus on making bold investments in US infrastructure,”
Last week, Biden unveiled a more than $ 2 trillion package outlining comprehensive upgrades to the country’s bridges, roads, public transportation and airports, among other transportation infrastructures. It also included investments in caring for elderly and disabled Americans, building and retrofitting affordable housing, and promoting U.S. manufacturing and job training efforts, among other goals.
To finance the package, Biden has proposed raising the corporate tax rate to 28% from 21%. The corporate tax rate had been lowered under President Donald Trump to 21% from 35% as part of a 2017 tax law.
Bezos’ support for a tax increase is noteworthy given that Amazon has previously been in control of its tax records, including from Biden. Last May, Biden, then a presidential candidate, told CNBC that Amazon “should start paying their taxes.”
Biden designated Amazon again last week under an address in Pittsburgh and smashed the company for using “various loopholes so they would not pay a single penny in federal income tax.”
In response, Amazon’s top spokesman Jay Carney said in a tweet: “If R & D tax credit is a ‘loophole’, it is certainly a congress that is strongly intended. R & D tax credit has been around since 1981, was expanded 15 times with bipartisan support and was made permanent in 2015 in a law signed by President Obama. “
After paying $ 0 in U.S. federal income tax for two years, Amazon paid $ 162 million in federal income tax in 2019. The company, which benefits from a series of tax deductions and deductions, reported total revenue last year of $ 386 billion.
– CNBC’s Jacob Pramuk contributed to this report.