Amazon CEO Jeff Bezos in on board with President Joe Biden’s ambitious $2 trillion infrastructure plan, even though his company will be hit by a serious corporate-tax hike.
Biden’s proposal includes raising that rate from 21 percent to 28 percent.
“We recognize this investment will require concessions from all sides — both on the specifics of what’s included as well as how it gets paid for (we’re supportive of a rise in the corporate tax rate),” Bezos said in a statement.
“We look forward to Congress and the Administration coming together to find the right, balanced solution that maintains or enhances U.S. competitiveness.”
The legislation, part one of the two-part American Jobs Plan, would include spending to improve the nation’s roads, bridges, and ports.
It also addresses broadband internet needs in rural areas, affordable housing help, clean-energy projects and further funding for care workers.
Amazon has long been accused of not paying its fair share in taxes, and Biden said last week Amazon was one of 91 Fortune 500 companies that “use various loopholes where they pay not a single solitary penny in federal income tax.”
For its $22 billion profit in 2020, Amazon paid an effective federal income-tax rate of 9.4 percent, according to the Institute on Taxation and Economic Policy; SEC filings indicate it was only 8 percent.
The new 28 percent rate would offset the infrastructure plan’s costs within 15 years. For multinational firms, the target is a 21 percent global minimum rate – an idea Treasury Secretary Janet Yellen endorsed.
The Business Roundtable, representing CEOs of major American firms, issued a statement against the plan, saying it would create “new barriers to job creation and economic growth.”
Bezos announced he’ll step down from the CEO role during the third quarter this year.