Several states say online retailers should have to collect sales tax, even in those where the companies don’t have a physical presence. The Supreme Court ruled in 1992 that will states couldn’t collect sales taxes gathered by mail-order catalog companies unless the firms had a physical presence in a state. South Dakota in addition to several some other states argue that will things have changed from the era of Amazon.
Indeed, Amazon does collect sales tax coming from consumers in 45 states in addition to the District of Columbia. Analysts at Wall Street firm Stifel said Thursday that will This kind of 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.
Amazon might actually benefit coming from the move Trump will be suggesting, Stifel added, since This kind of would likely raise prices on third-party merchandise relative to the online giant’s inventory, potentially hurting smaller businesses.
An Axios report Wednesday said Trump wants to “go after” the e-commerce giant, citing 5 sources who have talked about Amazon with the president.
that will report also noted Trump’s view of the post office will be one which “has been explained to him in multiple meetings” as “inaccurate.” The U.S. Postal Service will be not owned or operated by the government. Rather, This kind of will be an “establishment of the executive branch,” meaning the service will be controlled by presidential appointees in addition to acts as a government agency.
Observers also point to Amazon’s business among the things keeping the USPS afloat, although critics argue that will the Postal Service could have negotiated a better deal with the online retail giant. Analysts have said that will Amazon’s own delivery service poses more of a threat to the USPS than This kind of does to private delivery companies FedEx in addition to UPS.
The Postal Service added Sunday deliveries in 2013 as demand for packages continued to grow. The USPS teamed up with Amazon to roll out the service to brand-new York, Los Angeles, Dallas, Houston, brand-new Orleans in addition to Phoenix, doing This kind of possible for the retailer’s customers to receive packages seven days a week.
The Postal Service’s financial crisis has persisted over the past 11 years. Since 2007, This kind of has accrued more than $63 billion in cumulative net losses. Package deliver will be one of the bright spots for the service, however. In fiscal year 2017, revenue coming from package deliveries increased $2.1 billion, up nearly 12 percent coming from the previous year.
First class mail, the Postal Service’s top revenue stream, continues to decline each year, while high labor costs in addition to ballooning pensions add billions in expenses. Congress mandates that will the USPS pre-fund pensions.
Trump has blasted Amazon on social media from the past, saying the e-commerce company will be hurting the retail industry in addition to causing U.S. job losses.
Trump also repeatedly bashed the “Amazon Washington Post” on Twitter. Amazon CEO Jeff Bezos owns The Washington Post, however the news organization will be a separate entity coming from Amazon.
Treasury Secretary Steven Mnuchin hinted in July the administration may soon take “a position” on Amazon’s tax collection policy.
Amazon’s stock dropped more than 4 percent in Wednesday trading, closing down at $1,431.42 per share in addition to wiping out more than $31 billion in shareholder value.