While the fine points have yet to be fully explained, Democratic presidential nominee Joe Biden has broadly described the tax overhauls he has in mind if he is elected. His campaign website explains a Biden-led White House would seek to raise the U.S. corporate tax rate from 21% to 28% and raise taxes on earnings produced abroad from a rate of 10.5% to 21%. He also intends to impose a “15% minimum tax on book income so that no corporation gets away with paying no taxes.”
That plan poses a clear threat to most large companies’ bottom lines. Independent tax policy analysis nonprofit The Tax Foundation estimates these moves would extract an additional (on a net basis) $2.65 trillion from U.S. companies over the course of a decade. All for-profit organizations would pay at least a little more, including e-commerce giant Amazon (NASDAQ:AMZN), which is often criticized as dodging taxes.
Anyone who is worried that Biden’s proposed tax code plan would prove devastating to Amazon, however, doesn’t need to sweat it too much.
Where Biden stands
If it feels like Joe Biden is particularly fixated on Amazon’s tax bills, you’re not imagining things. The Democratic nominee has repeatedly pointed out how little Amazon pays in any given year.