Amazon’s Jeff Bezos Supports Infrastructure Bill, Corporate Tax Hike
(Bloomberg) - Jeff Bezos, chief executive officer of Amazon.com Inc., said he supported investing in US infrastructure and increasing the corporate tax rate to aid pay.
While lawmakers debated the Biden administration's $ 2.25 trillion infrastructure plan, the Amazon founder said his company supported "bold investments in American infrastructure," but did not support the president's proposal.
"We understand that this investment requires concessions on all sides - both in terms of the details of the benefits included and the way in which they are paid for (we support an increase in the corporate tax rate)," said Bezos published in a brief statement on Amazon's corporate blog website. "We look forward to Congress and the government coming together to find the right, balanced solution that will maintain or improve US competitiveness."
Amazon traditionally avoids political issues that are not directly related to its business in order to avoid alienating customers. However, the company was embroiled in the infrastructure and payment debate. Just last week, Biden cited Amazon as an example of a company that didn't pay federal income tax, contrasting it with people who were unable to reduce their tax burdens to zero.
Responding to the criticism on Twitter, Jay Carney, a Biden employee under the Obama administration who now leads Amazon's lobbying and communications teams, said Amazon had reduced its tax burden on loans that incentivized spending on research and development should offer.
Amazon has historically had low profit margins, partly because it reinvests most of its sales in the company. This reduces the corporate tax burden based on profit, makes Amazon eligible for R&D tax credits, and means increasing those taxes would be less of a blow than it would for higher profit companies.
Still, tech companies like Amazon are likely to pay more under the Biden plan.
Infrastructure investments would also help Amazon move goods efficiently across the country. Bezos has recognized in the past that his company's existence relied on massive public investments in the Internet and the U.S. Postal Service.
Amazon also recently got attention from the White House, thanks to a closely watched union drive at a warehouse in Bessemer, Alabama. The government released a video in which Biden said he supported workers' right to organize and encouraged employers not to illegally interfere in campaigns in the workplace without mentioning Amazon by name.
(Updates with details on Amazon Tax Payments, beginning with the second paragraph.)
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