"Congress didn't wake up one morning and say, 'Let's punch enough holes in the tax code so that Amazon and Netflix can earn billions and pay nothing,'" Warren told CNN Business on Tuesday after chairing her first Senate finance subcommittee hearing.
Warren's tax would apply only to companies that report book income above $100 million. It would seek to raise $1.3 trillion. Netflix paid a tax rate of less than 1% last year, while Amazon's federal rate was 9.4%, according to ITEP. "US tax laws were designed to encourage the kind of investments Amazon has made to move the US economy forward," Amazon said.Republicans and some academics have warned against taxing book income.
Warren argued that the current system is unfair to small business owners, who don't have the resources to pay for lobbyists to influence Congress. Asked if she's disappointed that Biden is not pursuing a wealth tax, Warren suggested she's not giving up just yet.