For example, at a dinner last month at Mar-a-Lago with Fox News personality Geraldo Rivera and the president’s two adult sons, Donald Jr. and Eric, Trump brought up Amazon and said they should pay more in taxes, according to a person familiar with the dinner.
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Does Amazon avoid state and local taxes?
The president also reportedly argued that Amazon is benefiting from low taxes on online retail and from the U.S. Postal Service that offers quick and low cost deliveries to millions across the U.S.
Amazon shares fell 4.38 percent on Wednesday after the news.
Amazon did not reply to a request for comment on the Axios report. That means all online purchases, not just those from Amazon, will be subject to sales taxes.
Trump’s administration is now drawing up plans to “go after the firm” and to protect traditional brick-and-mortar stores.
Trump’s criticism did not diminish US fund managers’ long-term enthusiasm for Amazon, whose stock has risen more than five-fold in the last five years.
Some states have already implemented laws to specifically address the tax issue when it comes to third-party sellers.
Sources speaking with Bloomberg say Amazon is in early talks with banks about offering a checking account-like product to those too young to open one at a traditional bank without their parents’ permission.
A USPS spokesperson declined to comment on Trump’s comment. Still, the post office is a money-losing business, posting a net loss of $2.7 billion a year ago. But the Postal Service, in its annual report to Congress, said its revenue from shipping and packages in the year that ended September 30 was $500 million above its forecasts, at $19.5 billion, “due to e-commerce growth” and successful marketing and sales campaigns. In fiscal year 2017, revenue from package deliveries increased $2.1 billion, up almost 12 percent from the previous year. “Should be charging MUCH MORE!” he tweeted. Company stock has almost quadrupled over the last three years, making its founder Jeff Bezos the wealthiest person on the planet. The probe found that many of Trump’s philanthropic claims were exaggerated and often were not charitable donations.
Trump also said that the paper is simply a front for Bezos and his other company.
Bezos on the other hand has criticized the President for “eroding the U.S. democracy”.
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Axios reported Wednesday that Trump is “obsessed” with Amazon and is planning to crack down on the company over issues he has with its property and sales tax policies. “It’s really about policy”.
