Donald Trump slams Amazon for paying 'no taxes'

Trump Blasts Amazon Washington Post On 'Internet Tax' Evasion Is That Even A Thing
Trump loads another tweet into the chamber — and fires on Amazon again
Author

02 April, 2018

Amazon does in fact collect sales tax on its direct sales in every state that has one, but it may not be collecting local, municipal sales taxes.

That's translated to more packages and package-related revenue, in part thanks to Amazon.

To comply with federal law, the Postal Service in 2017 had to generate at least $1.6 billion in income from its "competitive nonpostal services", which includes Amazon package deliveries.

Even during its first-quarter financial report, which is typically its strongest of the year, USPS saw a decline in revenue of $169 million and a net loss of $540 million. In 2006, Congress mandated that the postal service prepay benefits, a special requirement other agencies do not face.

Trump has made similar claims before about Amazon's tax payments, both as president and a private citizen. On Feb. 15, speaking at a hearing before the House Ways and Means Committee, Mnuchin said he had spoken personally with Trump about online taxation, and that the president "does feel strongly" that sales tax should be applied to internet purchases.

In their place, Amazon hired Paul Brathwaite of Federal Street Strategies LLC and Josh Holly of Holly Strategies Inc., according to the person. And he could thwart Amazon's aspirations to win a multibillion dollar Pentagon contract for cloud services. Although the service is certainly losing money, the delivery of packages increased by 589m in 2017, which can be partially accredited to Amazon.

But with that network in its early stages, it's a paying customer of the post office.

President Donald Trump, in his crusade against tech behemoth Amazon and its CEO Jeff Bezos this week took another jab at "their Delivery Boy", the United States Postal Service.

Tyronn Lue to Rejoin Cavaliers as Observer vs. Pelicans After Leave
Lue has been on medical leave the past six games after he had stepped away during a game against the Chicago Bulls. Assistant coach, Larry Drew , has been in charge for the past six games, leading the Cavaliers to a 5-1 record.

For a time, many people selling things on Amazon would set themselves up in states with little or no state income tax, and then declare that all the income they earned in the US should be taxed as though it was from there, regardless of where the buyer was from. Sellers on the marketplace determine whether they collect taxes on sales or not.

"And as a result, companies like Amazon can buy and sell good without having to pay basic retail taxes that your stores and your convenience stores and all the folks around, when you walk out of the studio over there and grab something, you have to pay".

There has been talk in Washington of taxing online commerce more. "Right now there is no Internet sales tax", White House Principal Deputy Press Secretary Raj Shah told Fox news.

Some states fought against this and eventually won in court, so Amazon now collects state taxes on behalf of third-party sellers and remits them to local governments, where applicable.

"Common sense suggests USPS needs Amazon more than Amazon needs USPS", Stifel analysts wrote in a research report this week.

White House spokeswoman Sarah Sanders said Wednesday no specific policies were now being considered in regards to Amazon.

One explanation: According to Axios, Trump hates Amazon (and the "Amazon Washington Post"), and Bezos, but never brings up Facebook or Zuckerberg. Separate figures in the report show it was expecting to pay $100 million to $200 million in taxes at the US state level in 2017.

Trump has targeted Amazon for other reasons in the past: its founder and CEO Jeff Bezos personally owns The Washington Post, and Trump has called the newspaper "fake news" and a "guardian of Amazon" after it published unfavorable stories about him or his administration.


More news