Jeff Bezos says he supports raising the tax rate

Amazon founder and CEO Jeff Bezos

Mark Ralston | AFP | Getty Images

Amazon CEO Jeff Bezos on Tuesday expressed support for raising the tax rate, but said he supports President Joe Biden’s plan for the increase.

“We support the Biden administration’s focus on making risky investments in US infrastructure,” Bezos said in a statement. “We realize that this investment will require concessions from all sides, both on the details of what is included and on the payment thereof (we support an increase in the tax rate).”

Last week, Biden unveiled a $ 2 trillion package outlining comprehensive upgrades to the country’s bridges, roads, public transportation and airports, including transportation infrastructure. It also included investments in caring for the elderly and disabled Americans, building and renovating affordable housing, and promoting U.S. manufacturing and vocational training efforts, among others.

To finance the package, Biden proposed raising the corporate tax rate from 21% to 28%. The corporate tax rate under President Donald Trump was reduced to 21% from 35% as part of a tax law in 2017.

Bezos’ support for a tax increase is noteworthy, as Amazon has previously looked at its tax record, including from Biden. Last May, Biden, then a presidential candidate, told CNBC that Amazon “should start paying their taxes”.

Biden singled out Amazon again during a speech in Pittsburgh last week, complaining to the company that they “used different loopholes so they would not pay a single cent in federal income taxes.”

In response, Amazon’s top spokesman, Jay Carney, said in a tweet: “If the R & D tax credit is a ‘loophole’, it’s definitely one congress that is strongly intended. The R & D tax credit has existed since 1981, was extended 15 times with bipartisan support and was in 2015. made permanent in a law signed by President Obama. ‘

After paying US federal income tax for two years, Amazon paid $ 162 million in federal income tax in 2019. The company, which benefits from a variety of tax credits and deductions, reported total revenue of $ 386 billion last year.

CNBC’s Jacob Pramuk contributed to this report.

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