April 2, 2021
President Joe Biden vowed on March 31 to make companies like Amazon pay their fair share in taxes in order to fund his ambitious $2 trillion infrastructure plan, Raw Story reports, crediting Agence France Presse as a source.
In his speech in Pittsburgh, Biden expressed outrage over the imbalance between taxes paid by the wealthiest corporations and the burden for middle-class workers. He cited a 2019 study, which found that 91 Fortune 500 companies, “the biggest companies in the world, including Amazon … pay not a single, solitary penny of federal income tax.
Biden on Wednesday unveiled the far-reaching plan to shore up the nation’s highways, bridges, and ports; fund telecommunications upgrades; and increase financial backing for research and development to increase the nation’s competitive edge—especially compared to China.
The package already is drawing condemnation from corporations that balk at reversing the tax cuts signed in late 2017 by then-president Donald Trump, Raw Story says. That measure slashed the corporate rate from 35%— although, with various deductions and loopholes, the average rate companies actually pay was, and remains, much lower.
First enacted in 1909 in the United States, the corporate tax rate got as high as 52% in 1968 before a series of cuts in the 1970s and 1980s, Raw Story notes. .
Among the 37 member nations of the Organization for Economic Cooperation and Development (OECD), the United States has a relatively high official tax rate after France and Colombia at 32%, and Australia, Mexico and Portugal at 30%.
But the average US rate after deductions trails far behind many advanced economies, according to OECD data.
“If the R&D Tax Credit is a ‘loophole,’ it’s certainly one Congress strongly intended,” he wrote on Twitter; noting that it had been extended by lawmakers several times since its inception in 1981 and was made permanent by president Barack Obama in 2015.
Biden contended that the corporate tax hike was “not about penalizing anyone. I have nothing against millionaires and billionaires.”
The eight-year investment plan “builds a fairer economy that gives everybody a chance to succeed,” he said, noting it would “create millions of jobs, good-paying
As expected, business groups have sent early signs of their opposition to the Biden plan.
Research contact: @RawStory