قالب وردپرس درنا توس
Home / Business / The facts behind Trump's Tweet on Amazon, Taxes and Post

The facts behind Trump's Tweet on Amazon, Taxes and Post



These totals may include taxes paid on state, federal, and foreign income – although the submission does not specifically break down each amount.

An analysis published in February by the Institute for Taxation and Economic Policy, a Left Research Group, concluded that Amazon will not pay federal taxes in 2017. It quotes the company's SEC with the conclusion that Amazon used a variety of tax credits and credits to avoid paying federal taxes.

Amazon and the postal service

Mr. Trump has also previously criticized the relationship between Amazon and the post office. In December, the President denounced the agency on Twitter for the loss of billions of dollars if it could charge Amazon and other shippers "MUCH MORE".

It is true that the postal service has reported net losses for ten years; Most recently, the net result of its business activities was reported in the 2006 financial year. In fiscal 2017, the agency reported a net loss of $ 2.7 billion; In the last three years, the company suffered almost twice as much losses.

The beginning of fiscal year 2018 indicates that the organization is not reversing its assets. In the first quarter, which also included the December season, which typically has the strongest annual profit, Swiss Post had a net loss of $ 540 million.

These losses can not be attributed to Amazon and the president alone. Twitter posts lack context. Remarkably, parcels and shipping are areas of growth for the post office that have offset their overall revenue shortfalls.

The postal service is putting a large chunk of its financial woes on a continued decline in the volume of marketing mail and premium mail – bills, birthday cards and, for example, bridal shower invitations. The postal business is still the "main source of income," said Postmaster General Megan J. Brennan in a statement in February.

In large part due to the Internet's online bill, Facebook's birthday mailing and e-vites – the volume of premium mail sent through the postal service has risen by 43 percent since 2001, when it reached its peak declined.

However, Mr. Trump's claim that the postal service leaves money on the table may have some truth to it. An analysis by Citigroup in 2017 showed that the parcel delivery agency was below market prices.

If that's the case, Amazon benefits, widely regarded as one of the largest customers of the postal service.

The report is estimated If the agency increases its package prices, Amazon's shipping costs would rise by $ 2.6 billion. Part of this money would probably go to the post office, which in 2014, according to a 2015 estimate, handled 40 percent of Amazon's parcels.

The report also suggested that Amazon's high shipping volume provides a greater opportunity to negotiate rates with shippers. Amazon has in the past acknowledged that it has an agreement with the Post Office, but refutes the idea that its shipments are subsidized by the Agency.

In a 2017 statement, Amazon said that its partnership with the Post Office was "reviewed annually by the Postal Inspectorate", which considered their contracts viable.

Joseph Corbett, Post's Chief Financial Officer, has also defended the shipping rates of the agency. In a July letter to the Wall Street Journal, Mr. Corbett wrote that the "competitive postal package products, including the products we supply to Amazon," are legally required to cover the costs incurred.

Continue reading the main story


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *