Amazon traditionally shuns hot-button political issues that aren’t directly tied to its business to avoid alienating customers. But the company has been caught up in the debate about infrastructure and how to pay for it. Just last week, Biden cited Amazon as an example of a company that didn’t pay any federal income tax, drawing a contrast with individuals unable to cut their tax bills to zero.
Jay Carney, a Biden staffer during the Obama administration who today leads Amazon’s lobbying and communications teams, addressed the critique on Twitter, saying that Amazon had reduced its tax burden with credits meant to incentivize spending on research and development.
Amazon historically has low profit margins, in part because it reinvests most revenue back into the company. This reduces the burden of corporate taxes based on profit, makes Amazon eligible for R&D tax credits and means a hike in such taxes would be less of a blow than to higher-profit corporations.
Still, technology companies like Amazon will likely pay more under the Biden plan.
Infrastructure investments would also help Amazon efficiently move goods around the country. Bezos has acknowledged in the past that the very existence of his company was predicated on massive public investments in the internet and the U.S. Postal Service.
Amazon has also received attention from the White House recently thanks to a closely watched union drive at a warehouse in Bessemer, Alabama. The administration released a video in which Biden said he supported the rights of workers to organize and encouraged employers to refrain from illegal interference in workplace campaigns, without mentioning Amazon by name.
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