Trump Rails against Amazon over taxes, local retail, USPS
On Thursday, President Trump tweet a criticism on Amazon and implying that the administration mulling regulation action.
Jeff Bezos, Amazon’s founder and also the CEO of The Washington Post – One of the top newspapers. However, the administration came to power with the majority is a thorn in the eye of US President.
On Wednesday, Axios reported that the President exploring regulatory issues and “obsessing” over the company. However, during the briefing of White House, President talked about Amazon. Sarah Sanders, the Press Secretary said there are no announcements in the White House and no action or specific policies are finalized for the company.
However, when asked in the earlier comments of Treasury, Secretary Steve Mnuchin described some potential activities, while creating a high Internet sales tax. Furthermore, at briefing she said, many times, President Trump said “look” before creating a business level of playing field and there is zero difference. Also, he always looks at different ways without specific policies.
Likewise, the President’s tweet reflects about the issue with Bezos regarding politics, rather than serious aspects of the Paula Rosenblum, Amazon’s business model, said by E-commerce times of managing partner.
The concern of President Trump is done to politics with media business analyst, Rick Edmonds, The Washington Post, told the E-commerce times.
Echoes on Main Street:
Amazon’s concern is to take away business from the retailers of brick-and-mortar that leads efforts in the Congress and legislatures of the local state. It is also described that their e-commerce website is running without breaking local operational retail service rules.
The States can gain from US$8.5 to $13.4 billion anywhere. In case of allowing mandate collection of sales tax from all the remote sellers, many B2B and B2C companies may suffer.
The US Postal Service generated $19.5 billion revenues in 2017. Meanwhile, the Amazon accounted amount from the unknown sector. The postal regulation commission sees the arrangement of Amazon service is quite preferable, according to the familiar source of relationship.
The research director at the Institute on Taxation and Economic Policy, Carl Davis said, the Amazon is dragging to continuing its feet to collecting taxes through marketplaces or with a business portion, where the third party seller is the partner of Amazon.
However, E-commerce times told that Amazon can charge all, which is needed regarding taxes right now. If there will be a delay from the side of States, then it enables them to keep the price advantages for the business.
David Noted said, in many cities, Amazon have not pay any sales taxes but it is flaw due to local and state laws instead of floating tax regulation of Amazon. The Supreme Court of U.S is expected to rule over and provide state and local governments more authority toward the sales tax collection.
Court Precedent:
Effectively, the Wayfair are ruling and double be overturning the ruling of 1992 Quill v. North Dakota that found retailers physical presence. Also it was required to collect the sales tax collection over the State, as it is observed by the Joyce Beebe.
Trump comments at the end of the day showed that the Amazon has a major impact, said by the Thad Peterson. However, those who consider as the most loyal Amazon customers are unlikely their prime members onwards.
The world is large for the e-commerce. Ultimately if the online retailer collects the sales tax at the same price than the local retailers, then it must provide while check out the physical truncation. They argued that online commerce is more convenience, rather than variety over general price.