Former US Vice President Joe Biden took a jab at the world’s top global brand Amazon.com Inc.’s US $ 0 federal tax bill in 2018, adding that no company making profits in billions should be allowed a lower tax rate than firefighters and teachers.
A tweet by the Democratic presidential hopeful, Biden read, “I have nothing against Amazon, but no company pulling in billions of dollars of profits should pay a lower tax rate than firefighters and teachers. We need to reward work, not just wealth.” This comes after the various tax credits Amazon enjoyed in 2018 and received a refund worth US $ 129 million on its US $ 11.2 billion in profits in 2018.
The company retaliated by saying in a tweet “We’ve paid US $ 2.6 billion in corporate taxes since 2016. We pay every penny we owe. Congress designed tax laws to encourage companies to reinvest in the American economy. We have US $ 200 billion in investments since 2011 & 300K US jobs. Assume VP Biden’s complaint is with the tax code, not Amazon.”
Amazon is not the only company covered under the gambit of the lack of federal tax liability. Due to the tax overhaul in 2017, a number of big corporations like Delta Airlines and Duke Energy enjoyed the benefits of corporate tax rate being cut down from 35 per cent to 21 per cent.
This being said, Amazon does find a way to avoid some taxes, like the one passed by Seattle last year on large employers. Aggressive opposition made the state repeal the tax.