Jeff Bezos says he supports corporate tax rate hike

Amazon CEO Jeff Bezos expressed support for the corporate tax rate hike on Tuesday, but paused before saying he supported President Joe Biden’s hike plan.

“We support the Biden administration’s focus on making bold investments in US infrastructure,” Bezos said in a statement. “We recognize that this investment will require concessions from all sides – both on the details of what is included as well as how it is paid (we are in favor of an increase in the corporate tax rate). “

Last week, Biden unveiled a more than $ 2 trillion package that describes sweeping improvements to the country’s bridges, roads, public transportation and airports, among other transportation infrastructure. It also included investments in caring for elderly and disabled Americans, building and upgrading affordable housing, and advancing U.S. manufacturing and skills training efforts, among other goals.

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

Bezos’ support for a tax hike is noticeable given that Amazon has already come under scrutiny on its fiscal record, including from Biden. Last May, Biden, then a presidential candidate, told CNBC that Amazon “should start paying its taxes.”

Biden again singled out Amazon last week in an address in Pittsburgh, criticizing the company for using “various loopholes so that it doesn’t pay a single dime in federal income tax.”

In response, main Amazon spokesperson Jay Carney, said in a tweet: “If the R&D tax credit is a ‘loophole’, that’s certainly one of the words of Congress. The R&D tax credit has been around since 1981, was extended 15 times with bipartisan support, and was made permanent in 2015 in a law signed by President Obama. “

After paying $ 0 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, said total income last year of $ 386 billion.

– Jacob Pramuk of CNBC contributed to this report.