June 19, 2018

Trump takes aim at Amazon again

02 April 2018, 12:45 | Lorenzo Hawkins

Ruckar Here are 5 Amazon deals you can steal before Easter Here are 5 Amazon deals you can ste

Ruckar Here are 5 Amazon deals you can steal before Easter Here are 5 Amazon deals you can ste

"I have stated my concerns with Amazon long before the Election".

"Trump's deep-seated antipathy toward Amazon surfaces when discussing tax policy and anti-trust cases". But is Amazon paying little or no taxes to states and local governments?

But it wasn't clear whether this was because of some of Amazon's actual practices, or perhaps because Jeff Bezos, the Amazon CEO, also happens to own the Washington Post. Some states require this by law; in other states, Amazon does it voluntarily.

Earlier disclosures submitted to the US Senate showed that Amazon employs about 15 lobbyists, with another 15 outside lobbying firms who each assign more lobbyists to work on behalf of the company. Amazon does not have to collect taxes on third-party sellers using its Marketplace service. "Amazon vendors that can run through the Amazon Marketplace. don't collect the sales tax".

It's important to note that none of this is part of Amazon's own tax burden.

What's more, e-commerce - and Amazon was responsible for about 44% of all USA e-commerce sales previous year - is a sizable job creator. It paid $412 million in 2016 and $273 million in 2015. "Towns, cities and states throughout the US are being hurt - many jobs being lost!"

On top of this, the company may get a historic tax-break package when it chooses a site for its second headquarters. "But some cities aren't going to see a dime in new revenue unless state or local laws are updated". During the first quarter, that segment declined by 2 billion, or 5%.

A representative for Amazon declined to comment except to say the company collects billions of dollars in sales taxes every year.

Analysts at Stifel said the president's tweets on the topics does not seem "detrimental to Amazon".

How outdated? In 2012, Amazon began collecting and paying state taxes in California.

It's unclear what that obsession might translate to should Trump try to aim the powers of the executive branch at the company.

An analysis published in February by the Institute on Taxation and Economic Policy, a left-leaning research group, concluded that Amazon did not pay any federal taxes in 2017.

However, package volumes grew by 11.4 percent, according to USPS. "This means the company was able to shelter more than two-thirds of its profits from tax during that five-year period".

What about Donald Trump's claim that Amazon is a burden on the USA postal system? Of course, Amazon might not even need the Post Office when its fleet of drones takes flight.

In a week when Facebook was the focus of much criticism amid data security concerns, it was another internet giant that felt the full force of the President's ire.

"He's obsessed with Amazon", one source told Axios. The Post Office lost $2.7 billion past year, but "Shipping and packages were a rare bright spot for USPS in 2017, one of two sub-categories of mail for which revenue increased, rather than declined", according to Quartz.

It is true the Postal Service has consistently reported net losses for a decade; the last time it reported net income from its operations was the 2006 fiscal year. Amazon has acknowledged in the past that it has an arrangement with the Postal Service, but it has refuted the idea that its shipments are being subsidized by the agency. The Postal Service in a recent regulatory filing described such arrangements with online retailers as a synergy.

When the Sunday delivery deal was announced in 2013, the Washington Post said it offered the post office "hope".

On the other hand, online sales have perked up volume for packages, at least. "To accommodate the surge in volume and to avoid service disruptions during the holiday season, we have increased Sunday delivery service for some of our customers in limited USA markets and are again adding employees for the holiday season". Three nominees are awaiting hearings in the Senate.

When he raised questions about Amazon's tax collection in 2017 via another tweet, The New York Times was quick to call the claim "outdated".

There has been talk in Washington of taxing online commerce more. These are larger than Trump allows.

Amazon could hurt the postal service - and other package companies - if it successfully shifts more of its delivery to its own delivery network, which it's been slowly building out over the past few years. But that's not the whole story.

Other News

Trending Now

How many Easter eggs should a child get?
The event ended with a picnic with grilled food and snacks. "The eggs are vacuumed up in two to three minutes", he said. Special guests will include the Easter Bunny and the William Penn University mascot, Willy P.

Soldier auto incident in Alps not terrorism-related: French prosecutor
His 18-year-old girlfriend, a radicalised Muslim convert, was charged with being part of a terrorist conspiracy. The attacker was killed by police as they stormed the supermarket.

AS Roma's transfer market mastermind explains Mohamed Salah sale
It's a job that Roma's American ownership understands. "Monchi has had to deal with a lot of issues with Financial Fair Play and some of the mess we still had with that.

Time for BJP to pack up and go: Mamata
Banerjee visited Parliament on Tuesday where she met Shiv Sena MP Sanjay Raut and Nationalist Congress Party chief Sharad Pawar . Pawar had earlier in the day denied that a meeting over dinner with opposition parties was scheduled tonight.

Amid mounting anger at scene of mallfire, Putin pledges action
There were shouts of "killers!" and calls for the region's governor, Aman Tuleyev, to resign over fire safety failures. Security guards could have triggered another alarm, but the guard tasked with doing so did not, Bastrykin told Putin.

Roseanne Barr: 'I Think Trump's Stealing My Act'
"It shows people's different opinions and how they resolve them", Barr said at the NY premiere of the show on Monday night. Actress Roseanne Barr attends the Disney ABC Television TCA Winter Press Tour on January 8, 2018, in Pasadena, California.

Facing felony charge, Michael Bennett turns himself in
Bennett made a brief court appearance Monday where the judge set his bond at $10,000 on a felony count of injury to the elderly. The court imposed a no-contact order for Bennett with Tatman, the complainant, meaning Bennett is not permitted to contact her.

Ant McPartlin scenes to air on Saturday Night Takeaway
Saturday Night Takeaway's latest episode was cancelled last Saturday, with Ant leaving the show for the rest of the series. Ant's rating has slid dramatically to minus 24, compared to his 37 slot in November, according to The Sun .

President Trump's Lead Attorney in Russia Investigation Resigns
Trump intensified his criticism of Mueller last week, calling the special counsel out by name in a string of Twitter messages. Trump has increasingly vented his frustration about the Russian Federation investigation and Mueller in recent days.

Malala Yousafzai returns to Pakistan six years after Taliban attack
At the age of 11, Malala began an anonymous blog for the BBC detailing her life under Taliban domination in her home, Swat Valley. After the attack, the Taliban, which has condemned female education, vowed to kill Yousafzai if she ever returned to Pakistan .