With new tax rates potentially rising for many different income groups under the new Biden Administration, including a corporate tax hike that could possibly raise the rate from 21% to 28%, how are the leaders of the top companies in America reacting to it? Well, Amazon CEO Jeff Bezos is all for it. In an article from the British Broadcasting Corporation (BBC), they recite comments in a recent statement from the world-famous entrepreneur that Amazon supports an increase in the corporate tax rate in the United States. He encouraged efforts made by both the president and Republican and Democratic members of Congress to maintain competitiveness in the U.S. market. These taxes would be of use towards rebuilding and investing in American infrastructure, a major cornerstone of the Biden Administration’s goals.
Biden and Senator Elizabeth Warren specifically mentioned Amazon as an example of a corporation that needs to pay their fair share in taxes. The company paid a federal income tax at 9.4% in 2020 and continues to push back against critics of their contribution to the greater society. Amazon states that they paid $1.7 billion in federal taxes and invested $350 billion last year. The latter allows the company to get a tax cut due to guidelines in the law that incentivize companies to invest in the research and development areas of other firms.
Bezos did not make any comments on any other taxation plans that are in the works from the U.S. government, which includes a plan being worked out with other nations to acquire more tax money from U.S. companies abroad. This legislation is believed to be more disliked by corporations than the domestic corporate rate.
If Bezos or other global corporate leaders were to disapprove of policies such as these, it shows a lack of corporate social responsibility. Their unwillingness to support taxation from where other portions of their companies are located and contributing to the overall productivity would mean they are not holding themselves accountable for not only their use of resources in another country but also their environmental impact. As global corporate citizens, one needs to be willing to put their commitments in for the entire world to benefit since they themselves are a benefactor of a globally corporate world. By supporting global corporate taxation, they can gain trust from stakeholders in the corporation domestically and globally.