Tech companies including Amazon, Google, and Uber say they agree to a corporate tax hike...

nanoguy

Posts: 769   +12
Staff member
The big picture: Biden wants to fund his American Jobs Plan by raising the corporate tax rate from 21 percent to 28 percent, and some tech companies -- most notably Amazon, Facebook, and Google -- have already shown support the increase. Other organizations are not so keen on the idea and argue that it would only hurt existing jobs and the competitiveness of American companies.

Earlier this month, President Joe Biden publicly criticized Amazon and 90 other companies that pay little or no federal income tax despite earning a significant profit. He also promised to put an end to the practice and close a loophole in the tax code that allows big tech companies to shift their profits overseas.

Biden proposes an increase in corporate tax rate from 21 percent to 28 percent, which would help fund his ambitious $2 trillion infrastructure plan. This is a bold, two-part package of measures that are expected to improve the country's aging roads, bridges, ports, airports, and transit systems, bring broadband access to rural areas, create more affordable housing, develop clean energy infrastructure, revitalize American manufacturing, and fund training and schooling for non-college graduates.

Interestingly, Amazon CEO Jeff Bezos showed his support for the idea through a public statement on Twitter, and noted the company recognizes the need for "concessions from all sides -- both on the specifics of what's included as well as how it gets paid for."

This week, a tech industry group called the Chamber of Progress -- which is funded by companies like Amazon, Google, Facebook, Uber, Twitter, Lime, Waymo, and DoorDash -- revealed its support for the increase in corporate tax rate. In the official announcement, the group described it as a "deal" the tech industry can support, and expressed its agreement with Treasury Secretary Janet Yellen, who recently wrote that "by choosing to compete on taxes, we’ve neglected to compete on the skill of our workers and the strength of our infrastructure. It’s a self-defeating competition."

That doesn't mean that all companies are happy about Biden's proposal, as a different organization called the Business Roundtable was quick to push back against the idea by arguing that any tax increase would hurt American companies' ability to compete on the global market. Joshua Bolten, who presides the Business Roundtable, notes that regulators should "avoid creating new barriers to job creation and economic growth, particularly during the recovery."

Some speculate that Amazon's support for the increase in corporate tax rate (and for that matter, that of the other member companies of the Chamber of Progress) is that it stands to benefit greatly from Biden's infrastructure plan and would see little impact on its bottom line. However, Chamber of Progress founder and CEO Adam Kovacevich says the tech industry group's reasoning is more rooted in the idea that a better infrastructure is conducive to more opportunities for everyone.

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Theinsanegamer

Posts: 2,446   +3,596
Amazon, google, et.al. only agree to the tax increases because they dont PAY said taxes, or they make up a tiny amount of their actual taxable income, while often their competitors in whatever industry they want to get into DO pay those tax rates. EVERY SINGLE TIME you see these companies argue for paying taxes to "help" the common man, it inevitably screws over the workforce. See also NAFTA "helping" the common man reach equilibrium across north america. These multi billion dollar companies want more money, always, anyone who believes otherwise is a useful money printer for said company.

Remember: amazon was pushing hard for the $15 an hour wage for their employees, which gave them tons of positive PR, while also pushing for a $15 minimum wage nationwide, which means that once again amazon gets away with paying the bare minimum for their employees. This nationwide minimum would have hurt the smaller shipping competitors and warehouse competitors Amazon is trying to put out of business, which often rely on cheap labor in markets with few other options to compete against the 800lbs gorillas. Google can go on about "helping the community" but the same company abuses the H1B1 visas to pay their employees less then american citizens would demand for living wages and goes out of its way to screw over content creators on their platforms.

Also remember: big companies will pass any higher cost to you, the consumer. If big tech pays 7% more in taxes theyll charge you an extra 20% to use their services or find excuses to mine your data even mroe aggressively then they already do.
 
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OortCloud

Posts: 593   +454
Now all Amazon need to do is actually follow through on this - unlikely - and also start paying tax in all the other countries in which they operate - wont happen. As for Google - they have all the morality of a rattlesnake.
 

Puiu

Posts: 4,583   +3,405
TechSpot Elite
99% of the time it is. Giving the government more money usually only results in more bloated beuracracy, because if they actually fixed issues, they would have no reason to demand more money and votes.
That kind of thinking is weird dude. If things were really like that in reality then society would collapse and you would live in a country worse than a third world country.

It's ok to doubt, but don't turn everything into a conspiracy theory or believe that things are just black or white.
 
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waclark

Posts: 51   +43
Amazon, google, et.al. only agree to the tax increases because they dont PAY said taxes, or they make up a tiny amount of their actual taxable income, while often their competitors in whatever industry they want to get into DO pay those tax rates. EVERY SINGLE TIME you see these companies argue for paying taxes to "help" the common man, it inevitably screws over the workforce. See also NAFTA "helping" the common man reach equilibrium across north america. These multi billion dollar companies want more money, always, anyone who believes otherwise is a useful money printer for said company.

Remember: amazon was pushing hard for the $15 an hour wage for their employees, which gave them tons of positive PR, while also pushing for a $15 minimum wage nationwide, which means that once again amazon gets away with paying the bare minimum for their employees. This nationwide minimum would have hurt the smaller shipping competitors and warehouse competitors Amazon is trying to put out of business, which often rely on cheap labor in markets with few other options to compete against the 800lbs gorillas. Google can go on about "helping the community" but the same company abuses the H1B1 visas to pay their employees less then american citizens would demand for living wages and goes out of its way to screw over content creators on their platforms.

Also remember: big companies will pass any higher cost to you, the consumer. If big tech pays 7% more in taxes theyll charge you an extra 20% to use their services or find excuses to mine your data even mroe aggressively then they already do.

Good points. It's like rich people saying we should raise taxes on rich people. Well, Amazon, Google et al, if you want to pay more in taxes you can do that. Right now, today, with absolutely no change in the law. No one is forcing you to take tax deductions. No one is forcing you to position your money outside the US (like Ireland). You can always make a donation directly to the IRS, easy-peasy.

The problem is when rich people or Corporations say we need higher taxes they are impacting the small guys, because what defines "rich" or a corporation? Many small businesses, like my restaurant, are "corporations". I am an LLC and I pay a butt-load of taxes already. The problem with tax law is that it generally doesn't differentiate between an Amazon and a mom-pop store.

I do not have an issue with paying taxes. What I have issue with is how those taxes are spent, especially when a fair portion is spent on things outside the US. We have plenty of things we can spend money on to fix. Homelessness, Veterans, Schools, Low Income Families, Economic Impact due to Covid and so on.
 

JamesBlond

Posts: 84   +55
99% of the time it is. Giving the government more money usually only results in more bloated beuracracy, because if they actually fixed issues, they would have no reason to demand more money and votes.
100% Fact here, and why do the people keep giving when they know this happens, because they hope the Criminal Politian's will change
 

TempleOrion

Posts: 68   +44
Thank gawd we have the trailer park economists on here to tell them there hi-falutin' intellecshuals how to run an economy! I just have no idea why they don't listen to your stellar wisdom...
 

Avro Arrow

Posts: 1,256   +1,385
TechSpot Elite
99% of the time it is. Giving the government more money usually only results in more bloated beuracracy, because if they actually fixed issues, they would have no reason to demand more money and votes.
Then the USA must be 99% of the time and all other NATO countries must be 1% of the time since instead of just bloating out their bureaucracies, they provide vital public services to their citizens. Universal healthcare is the first thing that comes to mind. Here's a little something that the New York Times released five days ago:
 
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waclark

Posts: 51   +43
Then the USA must be 99% of the time and all other NATO countries must be 1% of the time since instead of just bloating out their bureaucracies, they provide vital public services to their citizens. Universal healthcare is the first thing that comes to mind. Here's a little something that the New York Times released five days ago:
Because comparing a country of 5.5M to a country with 22 of 50 states as big or bigger makes sense.

The question I would ask is, if this is such a great idea why don't individual states start their own healthcare systems and cover everyone in that state? For as many Democratic/Liberal states as we have why hasn't anyone done this yet?