Jeff Bezos endorsed higher corporate tax rates. But it won't cost him much
April 10, 2021. Summarized by summa-bot.
Compression ratio: 16.5%. 1 min read.
Jeff Bezos, founder and CEO of Amazon, speaks during the Economic Club of Washington's Milestone Celebration event in Washington, DC, on September 13, 2018. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)
A year ago, Joe Biden, then the presumptive Democratic nominee for president, was picking a fight with Amazon over how little it paid Uncle Sam. Now Biden is president, and Amazon CEO Jeff Bezos is on a lonely island supporting the White House's plan -- to raise corporate taxes.
But it's a relatively easy plan for Bezos to get behind: His company pays nowhere close to the current 21% corporate tax rate, let alone the 28% rate Biden is pitching.
According to company filings, Amazon's federal income tax bill came to $1. 7 billion in 2020.
Bezos said recently that it's the right time for a major infrastructure investment and that Amazon is "supportive of a rise in the corporate tax rate" to help pay for it.
Amazon paid zero federal income tax as recently as 2018, making it a favorite target for those, including Biden, who argued that rich, profitable corporations are not paying their fair share.
ITEP analysis also shows the average effective corporate tax rate paid by profitable Fortune 500 companies was only 11. 3% in 2018, the year that Trump enacted the 21% rule.
Under the administration's plans, Amazon's taxes could see the largest increase from the proposal to impose a 15% minimum tax on the amount of money the company reports in pretax income.