Amazon shares PLUMMET as Trump accuses website of not paying ENOUGH tax
Apr 05 2018
President Trump once again lashed out at Amazon.com, the online retailing giant, on Thursday morning, saying he has long had concerns about the company's business practices.
According to a report by the United States news and information website Axios, Trump is planning to "go after" the world's largest online retailer amid growing concerns that Amazon's business is killing physical shopping malls and mom-and-pop retailers.
According to Axios, people who have met and spoken with Trumpsay the president is "obsessed" with Amazon and wants to find a way to change the company's tax treatment or go after it on antitrust grounds.
Following the report on Wednesday, Amazon'sstock fell roughly 4% and was down nearly 1% in pre-market trading on Thursday.
Trump has also repeatedly tied Amazon to the Jeff Bezos-owned WashingtonPost, an outlet that's also a regular target of his tweets. Jeff Bezos also owns The WashingtonPost, which is critical of the president.
Trump's administration is now drawing up plans to "go after the firm" and to protect traditional brick-and-mortar stores.
Over the summer, Trump tweeted that the company was doing "great damage" to other retailers and was hurting towns and cities all across the country. He misleadingly called it the "AmazonWashingtonPost". "Singling out favorite Trump villains like Amazon is a distraction from our bipartisan effort".
"If there really was teeth or real concern that something would come out of the government and regulatory oversight, Amazon's stock drop would be a lot lower than it is today", said Robert Bacarella, portfolio manager at Monetta Financial Services in Wheaton, Illinois, which holds Amazon shares.
In February, US Treasury Secretary Steven Mnuchin told the House's tax-writing committee that Trump "feels strongly" that the government should allow sales taxes on purchases made over the internet.
A spokesman for the U.S. Postal Service declined to comment.
Amazon did not immediately respond to PCMag's request for comment. With its array of products and ease of use, Amazon is viewed by many as a challenge traditional retail.
Seattle-based Amazon has fought for years against collecting sales tax, but now collects it in states that have a sales tax. Its North American sales came to $106 billion past year, suggesting that it collects billions in sales taxes for various states.
While Trump was correct in his assertion that the postal service is losing money, the agency did add deliveries on Sundays because of the money Amazon has paid them. "We have no announcement and no specific policies we are pushing for" related to Amazon, she said. In a similar fashion, Amazon's shares consequently dipped.