undergroundnewsroom.com
undergroundnewsroom.com April 26, 2018


The problem with Trump's claim about Amazon and the US Postal Service

02 April 2018, 11:25 | Gordon Grant

Trump loads another tweet into the chamber — and fires on Amazon again

Donald trump Jeff Bezos Amazon Ecommerce giant taxes US tax system

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.

White House spokesman Raj Shah said in a TV interview Thursday that Trump's tweets are not about Bezos, but that mom-and-pop shops and brick-and-mortar stores are having trouble competing with fast-growing Amazon.

Cloudtail, appointed a senior Amazon executive Sumit Sahay as its CEO past year, is the most important seller for Amazon in India and the company relies heavily on it to push top selling categories.

The retailer does pay taxes, both state and local, where it's required to do so-though it's true to say that it didn't always.

Amazon did not initially collect state sales taxes when it began selling books online in 1995.

"There's a lot of things where the federal government can do real damage to any business, and that's precisely why we don't want the president to attack individual companies, certainly not for political reasons", said Stan Veuger, an expert on politics and finance at the conservative American Enterprise Institute.

In a 2017 statement, Amazon said that its partnership with the Postal Service was "reviewed annually by the Postal Regulatory Commission", which found its contracts to be profitable.

A Supreme Court ruling favouring South Dakota could funnel up to $13 billion (£9.3 billion) annually of new tax revenues into the coffers of affected US states, according to a 2017 federal government report.

"If I become president, oh do they have problems", Trump said at a campaign stop in 2016. The development comes at a time when the local arm of the Seattle-based company has been faced with issues from several of the third-party sellers, especially the ones who do not use the e-commerce major's Fulfilled By Amazon (FBA) service.

Laura Ingraham Apologizes for Tweet About Parkland Survivor After Advertisers Drop Her
Nestle , Wayfair , Expedia , Nutrish and TripAdvisor have left the show, according to reports. "(Dinged by UCLA with a 4.1 GPA.totally predictable given acceptance rates)".

Mega Millions numbers: 11, 28, 31, 46, 59, Mega Ball 1
When asked what he would do if finding himself the victor of the mega Millions jackpot, his answer was surprising. And when there's this much on the line, he's also trying to convince friends and family members to buy tickets.

Saudis, SoftBank Announce World's Largest Solar Power Project
Saudi Arabia also plans to build at least 16 nuclear reactors in the next 25 years at a cost of more than 80 billion Dollars . Saudi Arabia has signed a memorandum of understanding with Softbank Group to set up the world's largest solar project.

The online retailer has been continuously adding products which are ready to be shipped for next day or two day deliveries.

As for the Postal Service, it has lost money for years, but online shopping has led to growth in its package-delivery business.

With this, the Amazon shares fell about 4.4 percent on Wednesday.

Trump is no fan of Amazon, and he often broadcasts this on Twitter. "They pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!" he tweeted.

"If there is a law that regulates how you tax third-party sellers, it's going to apply to everyone and Amazon's position will remain the same", said Steve Chiavarone, a portfolio manager at Federated Investors.

The reality, however, is that Amazon has little to do with why USPS has been bleeding red ink.

"Though imperfect, the deal is mutually beneficial", said the The Wall Street Journal editorial board. In 2017, the loss was $2.74 billion.

"During the previous five years, Amazon reported US profits of $8.2 billion and paid an effective federal income tax rate of just 11.4 percent", wrote Matthew Gardner, an ITEP senior fellow. "So has Starbucks, Barnes & Noble, Kroger and any other superstore that took share from small businesses". 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.

Trump has a long history of animosity toward Amazon Chief Executive Officer Jeff Bezos, who also owns the Washington Post, and the president previously has aired these complaints. "It's really about policy".



Other News

Trending Now

ICE Praises Orange County Sheriff for Defying California 'Sanctuary State' Law
The county supported Trump's opponent Hillary Clinton in the 2016 presidential election, the first time it voted for a Democrat since the Great Depression.

Advertisers Ditch Laura Ingraham After She Mocks Parkland Activist
He posted the names of her top advertisers on Twitter and urged his almost 700,000 followers to call those companies. Hogg wrote on Twitter: "An apology in an effort just to save your advertisers is not enough".

Disney star actress joins President Trump's White House!
CNN said Sunshine has a healthy social media presence with more than 500,000 Twitter followers and another 235,000 on Instagram . Sunshine, a young 22-year-old is known for her role alongside Zendaya as Tinka Hessenheffer in a Disney TV show 'Shake It Up,' .

Who Is Adea Shabani? Missing California Actress' Body Believed To Be Found
Spotz, however, fatally shot himself last Thursday off the 91 Freeway in Riverside County after a lengthy police chase. An autopsy on the body will be performed in which the identity, cause and manner of death will be determined.

The New 'Westworld' Season 2 Trailer Will Actually Blow Your Mind
There's also a shot of Robert Ford's ( Anthony Hopkins ) little boy host lying under a tree, looking very much the worse for wear. The lead-up to season two of Westworld has been nothing if not fascinating to watch. "They wanted a place hidden from God".

Facebook collecting phone calls, text messages from Android users
In my case, my personal data came in at over a gigabyte, most of it comprised of Messenger exchanges, GIFs, and photos. Facebook introduced the messenger app to let the user communicate with their friends on Facebook .

The Sharknado Film Series Is Finally Ending, And Time Travel Is Involved
The sixth Sharknado is set to air on Syfy sometime this summer; where will you be when the storm hits? Fox , Tara Reid and Cassie Scerbo, along with a now unreleased slate of stunt castings and cameos.

Meghan Markle's nephew not invited to royal wedding
To celebrate the upcoming royal wedding, TeamSport is on the hunt for Harry's (or Henry's) who are engaged to a Meghan (or Megan). Meghan Markle's family will reportedly receive their very own family coat of arms ahead of her royal wedding to Prince Harry .

5 bold Premier League predictions: Tottenham beat Chelsea
Tottenham are unbeaten in six Premier League away games since a 4-1 defeat by Manchester City in December. "Nothing is impossible. For example, last season, Chelsea won the title, Manchester United won the Carabao Cup, and Arsenal won the FA Cup .

Minister to bring 38 bodies from Iraq today
The mortal remains of the 39 Indians killed by ISIS in Iraq's Mosul were on Sunday handed over to Indian authorities in Baghdad . According to reports, he will first travel to Amritsar in Punjab to hand over 27 bodies, the maximum, to their families.