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President Donald Trump accelerated his attack on Amazon on Thursday, firing a tweet accusing the internet retail giant of adversely affecting the US economy.
Trump claimed that the retailer did not pay its share of state and local taxes, oust retailers from the market, and charged much needed resources from the United States Postal Service.
Amazon rejected NBC News' request to comment Tweet
Amazon has long been Trump's most popular punching bag on Twitter, and this is not the first time that the President has been in terms of taxes , Jobs and the use of post dives in Amazon. However, the tweet comes one day after Axios has reported that Trump "wants to go to" Amazon, despite reports that there are no current plans to enact new regulations or taxes against the retailer.
The news has unsettled investors Amazon's shares fell 4.4 percent on Wednesday as the fear of regulation and general volatility in the technology sector was aroused by the Facebook privacy scandal.
Taking the president's tweet at face value would be wrong ̵
State and Local Taxes
Trump claims that Amazon pays little to no state and local sales taxes in some places, and probably refers to the fact that Amazon is in In some cases, these sellers must collect the tax.
Supplement Amazon collects sales tax in the 45 states that require it. However, at the local level, there is a patchwork of regulations that dictate whether taxes are levied and whether this is the job of Amazon or the third party.
Sounds confusing? It is. Amazon has expressed its support in the past for federal laws to create a unified plan for online sales collection, but there is still movement on this front.
In a memo on Thursday, Lloyd Walmsley, a Deutsche Bank analyst said "The ship has sailed" when it comes to charging state sales tax through Amazon, a practice the company ran last April.
"In a way, we think that charging VAT was a blessing for Amazon's fulfillment facilities close to consumers so it can lead to faster and more reliable deliveries," he wrote, according to CNBC. Whether Congress will issue a special tax on Amazon just because President Trump wants it remains to be seen.
Is the United States Postal Service being ripped off?
Amazon ships millions of US parcels every year, but Trump's claim that the retailer unjustifiably uses the United States Postal Service and causes "enormous losses" is wrong
19659018] Why is the United States Post Office, which is losing billions of dollars a year, losing so much to Amazon and others that they ship their parcels, Amazon richer, and the mail stupider and stupid?
– Donald J. Trump (@realDonaldTrump) December 29, 2017
In a December tweet, Trump said the USPS is losing "many billions of dollars a year" and it should be charging more money from Amazon
The USPS loses money, but parcel delivery was the bright spot in its annual financial report, with shipments down 5 billion last year, but the number of parcels increased by 589 million Many of them are attributable to Amazon.
The Amazon partnership will be vetted annually by the Postal Inspection Commission for the postal service.
It is also noteworthy that Amazon does not use the postal service in the same way as most people and small businesses.
Instead of relying on the postal service to transport packages across the state. Amazon relies on its network of fulfillment in the Amazon and sorting centers to keep everything ready and deliver the parcel to the post office nearest to the customer Post will then take care of the last mile and ensure that the order gets into the customer's hands.
Where do all retail jobs go?
Then the question arises as to how Amazon affects US retail sales. Trump has already accused Amazon of violating retailers. "Cities, cities and states in the US are injured – many jobs are lost!" he tweeted.
In reality, while brick-and-mortar retailers can fight Amazon and the e-commerce sector have more than made up for job losses, according to a report the Progressive Policy Institute.
"We found that the e-commerce sector created 355,000 jobs between 2007 and 2016 – more than enough to make up for the 51,000 lost jobs in the general retail sector," the report said.
In addition, e-commerce employee wages increased by nearly $ 18 billion from 2007 to 2016, with the same payments in the general retail sector. According to the report, sales increased by less than $ 1 billion.
Amazon has created more than 200,000 jobs in the US, said the company's investor relations team. The Internet giant hired nearly 130,000 people worldwide last year without taking into account acquisitions, notably Whole Foods.
More jobs are also on the way. In January, Amazon reduced a list of 238 proposals for the second headquarters (HQ2) to just 20 competitors. Amazon has committed to invest $ 5 billion in the profit proposal and create at least 50,000 high-paying jobs on the new campus.
The cities still in the running, including Austin, Atlanta, Nashville and New York City are all pulling out of stoppages to impress Amazon, including dangling tax incentives and other promises in the hope of winning.
Amazon added $ 38 billion to the economy of its hometown, Seattle, from 2010 to 2016, according to the company. Since HQ2 is equal to the first headquarters, the chosen city will probably also have a major impact on their economy.