Amazon, Facebook and Google-funded technology industry groups help raise corporate taxes

The Chamber of Progress, a new technology industry group funded by giants such as Amazon, Facebook and Google, has raised corporate taxes as President Joe Biden has proposed to fund a $ 2 trillion infrastructure program. We are announcing support.

The move sets up a new centre-left group, the Chamber of Progress, apart from other business organizations that opposed Biden’s tax increases, such as the Business Roundtable and the US Chamber of Commerce. Group support does not reflect the individual views of each company funding it, but signals that the tech industry is open to higher tax rates and supports more infrastructure investments. I will.

The Chamber of Commerce, launched at the end of last month, is an industry alliance focused on a variety of economic, social and consumer issues, including the creation of social safety nets and efforts to address income inequality.

Biden has proposed raising the corporate tax rate from 21% to 28% to fund his US employment program, including an economic-wide infrastructure proposal. The plan includes funding to increase broadband availability, which is key to the success of Internet businesses, and other priorities emphasized by the technology industry, such as clean energy.

In an interview with CNBC on Wednesday, Adam Kobasevic, founder and CEO of the Chamber of Progress, said, “This plan is something that many in the tech industry have long wanted to see. It speaks to the goal. “

Kobasevic said his group’s openness to higher tax rates was not a final calculated decision.

“With better infrastructure, there are certainly all business benefits,” he said. “But I don’t really think people in the tech industry see it that way. I don’t think they think.’This is great for revenue.’ We believe this type of investment is good for American society and for American technical leadership in the world. “

In his 15 years of experience with tech companies such as Google and Lime, Kobasevic realized that investment decisions tend to depend on what, not corporate tax rates, so the tech industry could take this position. Said there is. You can pursue expansion opportunities.

“From my experience in the tech industry, this is a deal that most tech companies can co-exist with,” he said of the tax increase.

Automattic, Doordash, Getaround, Grubhub, Instacart, Lime, Twitter, Uber, Waymo, Wing and Zillow are also partners supporting the Chamber of Progress. According to the group, partners do not participate in board meetings or vote on policies.

The Chamber of Commerce of Progress did not identify a particular rate of belief that corporate taxes should be set, and Biden showed openness to negotiating the details of his infrastructure plan. It was. Amazon CEO Jeff Bezos has announced support for a tax increase, but has not fully supported the 28% tax rate.

Biden previously elected Amazon with historically low federal income tax payments. We believe this is due to tax credits, including research and development. Amazon paid $ 162 million in federal income tax in 2019 after paying $ 0 for two years. Last year’s total revenue was $ 386 billion.

As the technology industry faces the threat of higher taxes from abroad, the Chamber of Commerce’s decision to make progress in favor of domestic tax increases is coming. In a blog post previewed by CNBC, Kobasevic mentions his efforts in Europe to impose a digital services tax affecting major US tech companies, calling such a proposal “discriminatory.” He praised the Biden administration for boosting the move and wrote that the United States has a “national interest” in a fair global tax system.

“US companies also need to be able to compete fairly with foreign competitors, which is why Congress should focus on how to tax US companies’ foreign revenues fairly,” Kobasevic wrote. “Our tax system should also continue to encourage companies to invest in R & D, and Congress threatens how high-tech companies’ ability to attract talent is the current cap on state and local tax deductions. You have to look carefully for the possibilities. “

Kobasevic said he respects companies concerned about the negative impact of tax increases, but said he needs to take serious action to upgrade US infrastructure.

“President Biden’s proposal to raise corporate tax rates to make large investments in infrastructure is a trade-off that many in the tech industry can support,” he writes.

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See: How Amazon Paid $ 0 Federal Income Tax in 2018

Amazon, Facebook and Google-funded technology industry groups help raise corporate taxes

Source link Amazon, Facebook and Google-funded technology industry groups help raise corporate taxes

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