US President Trump slams Amazon for paying 'no taxes'
02 April, 2018, 11:30 | Author: Salvatore Jensen
Trump accused Amazon.com on Thursday of not paying enough tax, taking advantage of the US postal system and putting small retailers out of business, but did not present any evidence to back up his criticisms or suggest any specific actions he planned to take. He accused the firm of causing a "tremendous loss" to the United States government and "putting many thousands of retailers out of business".
Amazon did not immediately respond to PCMag's request for comment.
However, Amazon does not collect state taxes on third-party sellers who use the Amazon platform to sell their products.
Yesterday, Axios reported that Trump was "obsessed" with Amazon, even as public outrage has been directed toward Facebook. One source stated: "He's wondered aloud if there may be any way to go after Amazon with antitrust or competition law".
Amazon has an agreement with the US Postal Service to deliver some parcels at bulk rates - a deal which some say provides a subsidy to the company but which others say helps the beleaguered postal operation. During his presidential election campaign days, Trump had said, The WashingtonPost had a team of some 20 reporters to write stories against him.
Amazon pays the federal corporate tax and collects taxes in all 46 states where sales taxes exist, plus the District of Columbia. Amazon pays taxes in most states.
After a long runup over the past year, Amazon's stock has hit a rough patch, declining almost 10% over the past week to its current level of about $1,400 a share.
Amazon says that it actually helps small companies succeed in the hard retail climate.
As for the Postal Service, it has lost money for years, but online shopping has led to growth in its package-delivery business. USPS declined to comment on Trump's tweet.
This is not the first time the president went after Amazon.
It is well known that there is a personal feud between Trump and Amazon founderJeff Bezos, who now also owns The WashingtonPost.
Amazon has undoubtedly contributed to the closure of many brick-and-mortar stores and the bankruptcy of some chains as more people shop online instead of in malls. But other megastores like Walmart share much of the blame for that.
Bezos is also the owner of the WashingtonPost, a frequent target of Trump's ire over its news coverage.
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