Joe Biden picked on Amazon.com Inc Wednesday for not paying federal taxes during his speech in Pittsburgh, Pennsylvania, as he explained how he plans to pay second $2 trillion bill, this time for “infrastructure,” by raising corporate taxes.
Biden’s “infrastructure” plan of which only 25% is actually earmarked for highway and bridge improvements, was released earlier in the day also includes an increase in the corporate tax rate to 28% from 21% and changes the tax code to close loopholes that allow companies to move profits overseas, according to a 25-page briefing paper released by the White House.
Biden said Amazon was one of 91 Fortune 500 companies that “use various loopholes where they pay not a single solitary penny in federal income tax,” in sharp contrast to middle class families paying over 20% tax rates.
“I don’t want to punish them but that’s just wrong,” he said.
Biden’s plan would enact a 15% minimum tax on the “book income” that the largest corporations report to investors to ensure that they cannot use tax code loopholes to completely eliminate their tax liability.
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In response, an Amazon spokeswoman pointed to tweet on research and development tax credits by Jay Carney, the company’s public policy and communications chief and a former White House press secretary under former President Barack Obama.
“If the R&D Tax Credit is a ‘loophole,’ it’s certainly one Congress strongly intended. The R&D Tax credit has existed since 1981, was extended 15 times with bi-partisan support and was made permanent in 2015 in a law signed by President Obama,” Carney tweeted.
After paying $0 in federal taxes for two years, Amazon started paying federal income tax in 2019.
This is not the first time Biden has gone after Amazon. In June 2019, he named Amazon and said no company making billions in profits should pay a lower tax rate than firefighters and teachers.
Biden’s plan also eliminates tax credits and deductions for fossil fuel producers.
In addition to fixing “loopholes” the bill also boosts resources for the Internal Revenue Service to ensure that it can “effectively enforce U.S. tax laws”.
Just wait until the real economics of this bill comes into play, assuming the Dems force it through using reconciliation because there is no way any self respecting Republican could ever vote in favor of it’s nonsense! Can you say a backhanded tax to all Americans in the form of mass inflation?
ARTICLE SOURCE: thefederalistpapers.org