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Trump vs. Amazon: Let’s set a record straight

President Trump vs Amazon CEO Jeff Bezos


President Trump took aim during Amazon nonetheless again.

The boss on Thursday tweeted 3 dubious statements: 1) Amazon pays “little or no taxes to state internal governments,” 2) Amazon’s attribute with a US Post Office causes “tremendous loss” to a United States and 3) Amazon is “putting many thousands of retailers out of business.”

Stock in Amazon (AMZN), a fourth many profitable association in a world, fell 3% Thursday morning.

It’s no tip that Trump hates Amazon. He has regularly tweeted how many he dislikes a company.

Amazon (AMZN) did not respond for a ask for critique on a president’s latest criticism. Much of Trump’s antipathy for Amazon is since CEO Jeff Bezos also owns a Washington Post, whose coverage a boss frequently criticizes. Amazon does not reason a interest in a Washington Post.

But Trump’s critique of Amazon is not formed in fact.

Related: Trump vs. Amazon – So many for a businessman president

1. Taxes

Amazon collects sales taxation in each state that charges one and remits it to a states — and that’s probably each state

Years ago, when Amazon had few warehouses, it was means to get a rival advantage by not charging sales tax. When retailers boat products to states where they don’t have a earthy presence, they do not have to assign sales tax.

But Amazon has been adding to a inhabitant network of placement centers, and final year it announced it would start charging sales tax in each state, either it has a earthy participation there or not.

Amazon also pays internal skill taxes on a placement centers as good as on a Whole Foods stores it purchased final year.

The association has not disclosed how many a business compensate in sales taxes, yet it is considerable. Its North American sales came to $106 billion final year, suggesting that it collects billions in sales taxes for several states.

The boss is scold that Amazon does not always collect city and internal sales taxes, according to research progressing this week by a Institute on Taxation and Economic Policy. And it also does not collect sales taxes on purchases done on Amazon from third-party vendors. Third-party vendors had sales of $32 billion on Amazon in 2017, nonetheless some of those sales were outward of North America.

2. Postal Service

Amazon pays a post bureau to broach packages to customers’ doors.

Because Amazon ships so many packages yet a post office, it pays a reduce rate than many customers. But Amazon doesn’t get a special rate — it pays a rate that a post bureau charges other bulk shippers.

Amazon also has a special agreement with a Postal Service to broach packages on Sundays. Neither Amazon nor a post bureau has disclosed a sum of a agreement, yet a Postal Service says it’s jointly beneficial. Amazon effectively helps a Postal Service widespread a costs over a seven-day week.

The Postal Service is losing money. But it’s not Amazon’s fault: Citigroup final year reported that a normal parcel rate would need to boost by about 50% for a Postal Service to mangle even. The Postal Service’s biggest income problem is that it has billions in retirement obligations to a workers that it can’t afford.

3. Retail

Strong currents are pushing traditional stores to a brink.

It is clearly loyal that consumers’ change to e-commerce companies like Amazon has forced many normal retailers to tighten stores. But other megastores like Walmart (WMT) share many of a censure for that.

Amazon says that it indeed helps tiny companies attain in a formidable sell climate. For example, it allows tiny businesses to sell their products to a mass assembly when they differently wouldn’t be means to grasp tellurian scale.

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