On Monday, Sen. Bernie Sanders (I-Vt.) argued that Microsoft Corp’s (NASDAQ:MSFT) recent layoffs and Xbox price increases undermine claims that large corporate tax cuts ultimately benefit American workers.
Sanders Criticizes Microsoft Over Tax Break, Layoffs And Xbox Price Hike
Sanders renewed his criticism of corporate tax breaks, pointing to Microsoft after the tech giant announced about 3,200 job cuts and raised the price of its Xbox consoles.
Microsoft Chief People Officer Amy Coleman announced that the company will eliminate 4,800 positions, representing about 2.1% of its global workforce.
The Xbox division will account for roughly 3,200 of those cuts, with 1,600 employees affected immediately and the remaining 1,600 reductions planned over the next year.
In a post on X, Sanders wrote, “Last year, Microsoft made $101 billion in profits, got a $12.5 billion tax break from Trump & paid its CEO $96 million.”
He contrasted those figures with Microsoft’s recent moves, adding, “This year, it’s raising the price of an Xbox by $150 & eliminating 3,200 jobs.”
Sanders concluded with a broader criticism of corporate tax policy, saying, “Please don’t tell me corporate tax breaks create jobs. It never trickles down.”
Sanders Expands Criticism To Meta And Trump’s Tax Policies
The latest remarks are consistent with Sanders’ broader attacks on what he says are corporate beneficiaries of President Donald Trump’s tax policies.
In May, Sanders accused Meta Platforms, Inc. (NASDAQ:META) of receiving favorable tax treatment after the company paid $25 million to settle a lawsuit brought by Trump and contributed an additional $1 million to his inauguration fund.
Sanders alleged the company later benefited from an $8 billion tax break, saying its quarterly tax rate fell to negative 23%.
Elizabeth Warren Previously Targeted Amazon’s Tax Benefits
Sanders’ comments echo similar criticism from Sen. Elizabeth Warren (D-Mass.), who in February argued that Amazon.com, Inc. (NASDAQ:AMZN) received a $7.8 billion tax benefit under Trump’s tax law.
At the time, Warren said the tax break was equivalent to roughly 100,000 years of income for the median U.S. household, using the comparison to argue that the benefits of the tax policy disproportionately favored large corporations over working Americans.
Price Action: Microsoft shares closed down 0.96% at $386.74 on Monday and rose 1.40% to $392.16 in Tuesday’s premarket trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, Microsoft scores in the 90th percentile for Quality, though its stock has posted negative returns over the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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