Bezos endorses higher corporate taxes for infrastructure

Pedestrians wearing face masks walk past a commercial advertisement billboard of the American multinational financial services corporation and credit card business American Express in Hong Kong

Pedestrians wearing face masks walk past a commercial advertisement billboard of the American multinational financial services corporation and credit card business American Express in Hong Kong

Rep. Tim Ryan (D-OH) said, "Yeah, here we go".

According to a Joint Committee on Taxation report released last month, the average tax rate on USA multinational corporations fell by more than half following implementation of the Republican tax law.

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The news comes a week after President Joe Biden twice mentioned the company by name in a speech touting his $100 billion infrastructure plan, saying USA companies such as Amazon "use various loopholes so they pay not a single solitary penny in federal income tax".

Bezos' statement, posted on the company's website, was notable because it came after Biden singled out the company for criticism about how much it pays in federal taxes when he recently unveiled his $2.3 trillion infrastructure proposal.

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Biden introduced last week the first piece of a massive two-part infrastructure package known as the American Jobs Plan.

The company would benefit from the investments made in roads, bridges, airports and broadband.

Along with partially undoing the corporate tax cut put in place during President Donald Trump's administration, Biden also wants to set a minimum US tax on overseas corporate income, and to make it harder for companies to shift earnings offshore. For multinational firms, the Biden administration is seeking to put in place a 21% global minimum tax rate, a proposal that was endorsed by Treasury Secretary Janet Yellen on Monday.

Whereas the GOP's 2017 tax law exempted much of American corporations' foreign earnings from USA taxes-a policy critics decried as a major incentive for offshoring-the Senate Democrats' new proposal would repeal that handout and increase the so-called Global Intangible Low-Taxed Income (GILTI) tax, a levy created to limit the benefits of shifting profits to overseas tax havens.

"Paid for by asking big corporations, many of which do not pay any taxes at all, just to pay their fair share", Biden stated. Last year, it reported paying $1.7 billion in federal taxes on its USA income of $20.2 billion, working out to an effective tax rate of about 8%.

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