While the White House downplayed the report, Trump himself tweeted Thursday that he has long had concerns about Amazon. "Unlike others, they pay little or no taxes to state & local governments", Trump wrote on Twitter, "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!"
"Trump's deep-seated antipathy toward Amazon surfaces when discussing tax policy and anti-trust cases".
The report claims that the president's wealthy, real estate friends are telling him that Amazon is killing traditional shopping malls and high street retailers.
On Wednesday, shares of the largest US online retailer tumbled after a report that Trump might be looking for ways to turn his threats into action.
The largest online retailer has been a favorite target of Trump since his campaign, with the president blasting the company on Twitter for paying what he says are unfairly low taxes, damaging other retailers, and allegedly getting a sweetheart deal from the U.S. Postal Service, among other complaints.
That's translated to more packages and package-related revenue, in part thanks to Amazon. "And that's about half of their sales", he said. Some states require this by law; in other states, Amazon does it voluntarily. Merchants and industry sources, said Amazon is facing a tough task to transform the overall shopper experience from sellers conducting their business independently. Economist Michael Mandel notes that while brick-and-mortar retailers have lost 140,00 full-time jobs since 2007, e-commerce companies have added more than 400,000, including better-paying warehouse jobs in fulfillment centers.
One explanation: According to Axios, Trump hates Amazon (and the "Amazon Washington Post"), and Bezos, but never brings up Facebook or Zuckerberg.
The White House is looking at the idea of an internet sales tax.More news: Stephens defeats Ostapenko to claim Miami crown
Such a ruling would pave the way for states to expand tax collection for online sales across the board. Historically, 'there is no doubt that Amazon used its ability to not collect sales tax to gain a competitive advantage'.
"We are subject to income taxes in the U.S".
In other words, the discounts a company like Amazon receives from USPS can't exceed the money the postal service saves when that company helps out with some of the logistical work required to ship packages.
On top of this, the company may get a historic tax-break package when it chooses a site for its second headquarters. "But some cities aren't going to see a dime in new revenue unless state or local laws are updated". Shares (AMZN) dropped 4%, but they rebounded Thursday. "This means the company was able to shelter more than two-thirds of its profits from tax during that five-year period".
Moreover, Amazon does not need the Post Office; the Post Office needs Amazon.
The Postal Service saw a net loss of $2.7 billion in fiscal 2017, driven by factors such as declining flat-mail volume and pension and health benefit liabilities. Instead, it generated $6.8 billion, according to a 2017 compliance report.
Revenues from parcel deliveries are up but it hasn't been enough to offset the sharp decline in letter revenue, which has been a big problem for the postal service since the rise of email and online billing. "To accommodate the surge in volume and to avoid service disruptions during the holiday season, we have increased Sunday delivery service for some of our customers in limited USA markets and are again adding employees for the holiday season". And he could thwart Amazon's aspirations to win a multibillion dollar Pentagon contract for cloud services. Three nominees are awaiting hearings in the Senate.