Trump assails Amazon on taxes, retail competition

Donald Trump takes aim at Amazon again

Analysts at Wall Street firm Stifel said Thursday that it appears Trump was referring to taxes on sales by third-party retailers on the website, which account for about 50 percent of volume on Amazon.

An Amazon spokesperson declined comment. Its financial statement shows it paid 412 million dollars in taxes in the United States in 2016.

"While Amazon takes advantage of tax breaks and loopholes, it pays federal corporate tax and charges sales taxes in 46 USA jurisdictions".

Addressing the Axios report, White House spokeswoman Sarah Sanders explained that Trump's government is always looking for ways to make business fairer for everyone.

Before Wednesday's drop, Amazon's shares had soared more than 70% over the prior 12 months, a surge that more reflects Amazon's future growth prospects than its current size and earnings ability. Amazon's market value alone grew by $340 billion since Trump's inauguration.

Amazon-Washington Post connection. While Jeff Bezos is the CEO of Amazon and the owner of the Washington Post, there is no evidence that he has interfered in the editorial decisions (Fortune). During his presidential election campaign days, Trump had said, The Washington Post had a team of some 20 reporters to write stories against him.

USA media report that Trump's criticism of Amazon and Bezos may have stemmed from his misunderstanding of facts and his envy.

Amazon also maintains a corporate political action committee (PAC), a fund that allows the company to collect political donations from employees and then give donations to lawmakers and other politicians running for office.

Details of Amazon's payments to USPS, which delivers its packages to millions of USA consumers and businesses, are not publicly known. Amazon was criticized for not paying sales tax, which goes to state government.

"Amazon is doing great damage to tax-paying retailers".

Trump also repeatedly bashed the "Amazon Washington Post" on Twitter.

In Alabama, for example, Amazon runs five Whole Foods stores and a distribution center that opened late past year. Shares dipped more than 4 percent, while falling an additional 3.8 percent earlier Thursday morning.

One potential strategy for targeting Amazon is forcing all third-party sellers to collect sales tax or creating other "tax schemes".

In some major USA cities, including San Francisco, Philadelphia and New York, Amazon's has prompted the postal service to operate seven days a week because of deliveries, helping generate revenue for the postal service. "We're going from $140 million in tax collection to $80 million just by what the Legislature".