Opinion: Jeff Bezos is right about raising taxes
April 8, 2021. Summarized by summa-bot.
Compression ratio: 28%. 1 min read.
Jeff Bezos has garnered headlines again for his comments on Amazon's taxes. This time it comes with a twist. Bezos is not defending Amazon against charges leveled by the likes of Sen. Elizabeth Warren over Amazon's less-than-zero federal taxes in 2018. (In 2019, the company paid slightly more than 1% of its profits in taxes.)
Rather, the world's richest man is endorsing -- albeit without a lot of specificity -- the Biden administration's plan to increase the corporate tax rate and close down many of its loopholes to pay for a massive investment in America's infrastructure.
Although the increased revenue from higher individual and corporate taxes helped spur a recovery, Democrats got hammered in the subsequent midterm election that swept Newt Gingrich into power and gave the House to Republicans until 2006.
This time, out of the chute and needing funds for a host of long-deferred infrastructure projects, the Biden administration has put a laser focus on corporate tax revenues.
Ever since World War II, the American tax system has been increasing its burden on workers, they of the stagnant wages, and lowering it on corporations, those of the explosive growth.
Corporate income taxes, which provided just about 40% of federal revenue in 1943, now account for only about 7% of total federal dollars; the individual income and payroll taxes, combined, come in at 86%.
It doesn't just raise the corporate tax rate -- the proposal is to increase it to 28% from its current 21%, still below the 35% it was prior to the Trump cuts -- but also does what the TCJA failed to do: close loopholes.
The Biden plan seeks a global minimum corporate tax rate, backed up by denying US tax deductions to companies operating in low-tax jurisdictions.