Biden wants big companies to pay more taxes and points to Amazon as a (bad) example – business

Biden wants big companies to pay more taxes and points to Amazon as a (bad) example - business

The United States presented one this week Infrastructure planning With a set of The measures To democratize the use of the Internet and bring technology to those who do not yet have access. The US Jobs Plan was revealed as another package of measures, which provides for new tax regulations, the US Tax Plan, for larger companies.

There, it is predicted that the tax to be levied to large companies will increase from 21% to 28%, and changes in tax rules have been made to plug “holes” in the United States to avoid taxes, causing other Geographical areas can get real benefits.

Commenting on the new measures, Joe Biden explained using Amazon’s example what he does not want to continue to see in the country and recalled that Jeff Bezos’ company never federalized while maintaining its tax address in Pittsburgh, Pennsylvania Taxes not paid.

In a document submitted by the White House, it can already be read that 91 companies on the Fortune 500 largest list, according to studies, “are using a number of loopholes to avoid paying one percent in federal taxes.” “. Biden again cited the data as saying it contrasted with the reality of a middle-class American family that forwards 20% of its income in federal taxes, reports Reuters.

Joe Biden clarified that he has no intention of punishing the company for this – not least because the maneuvers that circumvent taxes are not illegal – but insisted that the situation is simply not right.

As the news agency also recalls, this is not the first time that Biden has cited Amazon as an example of tax evasion. In June 2019, the deputy referred the company to underline that no company with millions of dollars in profits could pay lower taxes than a fireman or teacher.

Amazon has since reacted by assuming that the tax credit policy, now considered responsible for the gaps that allow companies to evade taxes, has been repeated by Congress over the past decade.

“If the R&D tax credit policy is a difference, then it is definitely supported by Congress. Tax credits for R&D have existed since 1981 and have since been re-approved 15 times with bipartisan support and made permanent in 2015, in a law signed by President Obama ”.

The response came on Twitter, where a company spokesperson republished a statement already given by Amazon’s communications officer, Jay Carney, on the subject. Amazon will avoid federal taxes until 2019.

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Sarah Gracie

About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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