Pakistanis get green signal to do business on Amazon

Biden singles out Amazon for not paying federal taxes

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Washington: President Joe Biden pointed out in a speech in Pittsburgh, Pennsylvania on Wednesday that Amazon did not pay federal taxes when he talked about increasing the tax burden of multinational companies and raising corporate tax rates.

According to a 25-page briefing issued by the White House, Biden’s infrastructure plan announced earlier in the day increased the corporate tax rate from 21% to 28%, and changed the tax law to fill the loopholes so that the company can transfer profits to overseas.

Biden said that Amazon is one of 91 “Fortune 500” companies that “use various loopholes to not pay any money in federal income tax”, which is in stark contrast to the tax rate paid by middle-class households of more than 20%. .

“I don’t want to punish them but that’s just wrong,” he said.

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 caught up with Amazon. In June 2019, he named Amazon and said that no company that has made billions of dollars should pay lower tax rates than firefighters and teachers.

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