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Opinion
Karl W. Smith

Bezos, Not Biden, Is Right on Taxes and Inflation

Raising corporate rates may be politically appealing to Democrats, but it doesn’t make much sense economically.

Another tech CEO on Twitter.

Another tech CEO on Twitter.

Photographer: Alex Wong/Getty Images North America

The Twitter spat between Jeff Bezos and Joe Biden over tax policy and inflation has attracted the attention of no less an authority than Larry Summers, who says that the Amazon founder is “mostly wrong.” I hesitate to disagree with Summers — he was right last year, and I was wrong, about how Covid stimulus would result in persistent inflation — but: Bezos is mostly right.

On Friday, the president’s Twitter feed suggested that the best way to bring down inflation was to “make sure the wealthiest corporations pay their fair share.” Bezos responded that it was “fine to discuss” raising corporate taxes and “critical to discuss” taming inflation. But “mushing them together is just misdirection.”