The news comes a week after President Joe Biden twice mentioned the company by name in a speech touting his $100 billion infrastructure plan, saying US companies such as Amazon "use various loopholes so they pay not a single solitary penny in federal income tax".
"We recognize this investment will require concessions from all sides", the Amazon CEO said Tuesday. Business groups have joined in the call for more public works investment by the federal government, but they have generally balked at Biden's call for raising the corporate income tax, with the U.S. Chamber of Commerce describing Biden's proposal as "dangerously misguided when it comes to how to pay for infrastructure". "And it will not raise a penny tax on a family making less than $400,000 a year".
It's past time mega-corporations pay their fair share in taxes and create good-paying jobs in the United States.
"A fireman, a teacher paying 22% - Amazon and 90 other major corporations paying zero in federal taxes?"
According to a Joint Committee on Taxation report released last month, the average tax rate on US multinational corporations fell by more than half following implementation of the Republican tax law. In 2020, Amazon paid an effective federal income-tax rate of 9.4%, despite a year of massive pandemic-driven profits, according to the Institute on Taxation and Economic Policy. "This would reduce incentives to shift more profit overseas, and help level the playing field between multinational corporations and corporations operating primarily in the U.S". For multinational firms, the Biden administration is seeking to put in place a 21% global minimum tax rate, a proposal that was endorsed by Treasury Secretary Janet Yellen on Monday.
The Senate Democrats' plan also takes aim at incentives for foreign-derived intangible income (FDII), a system the lawmakers characterize as further encouragement for companies to "offshore factories". Then, he added, American companies should help pay for it. Former President Donald Trump had cut the corporate tax rate to 21% from 35% in 2017.