Washington: Jeff Bezos became the latest millionaire to launch a political battle on Twitter this weekend, dismissing a tweet from President Joe Biden about corporate taxes as “disinformation” and “misdirected”. The White House immediately counterattacked that Bezos “opposes an economic agenda for the middle class.” And then Bezos fired back, arguing that the Biden administration would have made inflation worse if its $3.5 trillion economic and social spending bill, known as the ‘Build Back Better’, made it into law. made. “They failed, but if they had succeeded, inflation would have been even higher than it is today and inflation is at a 40 year high today,” Bezos tweeted.
Do your best to add another $3.5 trillion to federal spending. They failed, but if they had succeeded, inflation would have been even higher than it is today, and inflation is at a 40-year high today.
The controversy is an unusually high-profile one for Bezos, who has generally sought to publicly avoid political squabbles. Bezos is the second richest person in the world with a net worth of $150 billion, behind Elon Musk, whose wealth has reached $268 billion. Musk, the founder of Tesla who wants to buy Twitter, has often used the social media platform to attack his alleged critics and take fights about free speech. The controversy began on Friday, when Biden’s account tweeted: “You wanna beat inflation? Let’s make sure the wealthiest corporations pay their fair share.”
Biden has often accused Amazon, the e-commerce giant that Bezos founded. and led, for nearly a quarter century, to failing to pay its fair share in taxes. In 2017 and 2018, Amazon paid no income tax despite earning billions in profits. Since then, the company has paid nominal taxes. Bezos tweeted in response, “It’s okay to discuss raising the corp tax.” “Overcoming inflation is the key to the discussion. Putting them together is the wrong direction.”
On the real policy question of “whether raising the corporate income tax will actually curb inflation,” most economists give Biden the edge with a caveat. “The idea would be that raising corporate taxes would reduce corporate spending and reduce aggregate demand in the economy and put pressure on prices,” said Michael Strain, an economist at the Conservative American Enterprise Institute. Still, Strain and most other economists caution that any rate increase will take several months to have much of an impact, Strain said, and even then, will not reduce inflation by much. “Corporate income tax is far below the list of all I will do to curb inflation,” said Carl Tannenbaum, chief economist at Northern Trust, a Chicago-based asset management firm.
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