Amazon shares fell 6% after President Trump planned to "follow up" the company. Axios reports that Trump is trying to change Amazon's tax treatment.
President Trump again targeted Amazon to hurt the dealers and the US Postal Service. Is his criticism correct?
The brick-and-mortar stores are closed by the hundreds, as retail chains have to compete with the convenience of online shopping, a transformation led and dominated by Amazon.
U.S. Pat. Postal services were churned up by the same storm-power storms when Americans abandoned the post office for e-mail and other electronic communications. But the Post has benefited, more than suffered, from Amazon, financial analysts and in-house employees say.
Along with UPS and FedEx, the postal service is helping deliver packages in the "last mile" of their Amazon trip.
That means more packages and package-based revenue, thanks in part to Amazon.
In the quarter from October to December 2017, the service handled 7% more parcels than in the same period of the previous year, while mail shipments declined by about 5%. "Although we continue to attract customers and expand our parcel business, these gains are not enough to offset the continued decline in our mail business, which is our main source of revenue," said Postmaster General and CEO Megan Brennan last month. The service has a decade-long chain of net – Net losses, which has led to unsecured liabilities of more than 120 billion US dollars, especially retirement and annuity insurance. In 2006, Congress mandated the postal services with advance payments, a special requirement of other authorities
"We are trying to reform legislation which will allow USPS to compete without the billion-dollar burden that Congress imposed on it in 2006. " Representative Gerry Connelly, D – Va., Member of a US TODAY statement, states in a statement by the US: "Picking Out Favorite Trump bad guys like Amazon are a distraction from our mutual effort. "
The Post and Amazon declined to comment on the business relationship. The postal service contract with Amazon must be approved by the regulatory authorities and generate a profit for the service.
Amazon could violate the postal service – and other parcel companies – if it successfully relocates more of its delivery to its own network, something it has been slowly building in recent years.
But with this network in its early stages, it's a paid customer of the post office.
"Amazon was a huge cash flow generation machine for the US Postal Service given the scale and scale of the company's global sales," said
Daniel Ives, Chief Strategy Officer and Head of Technology Research for GBH Insights.
Amazon, among the technology companies, is Trump's preferred destination, not just for package delivery.
On Wednesday, a news story in Axios, citing five unnamed sources, reported that the President is considering changing Amazon's tax treatment because the online retail giant is not paying its fair share of taxes and hurting smaller competitors , Stocks (AMZN) fell 4%, but recovered on Thursday.
Trump tweeted on Thursday that he had expressed concerns about the company prior to his election. "They pay little or no taxes to state and local governments, use our postal system as their delivery boy (which causes enormous harm to the US), and drive many thousands of retailers out of business!" He tweeted.
Amazon did not initially raise any state sales taxes when it began selling books online in 1995. However, Amazon and other large e-commerce companies routinely collect state sales taxes.
Stifel analyst Scott Devitt said that e-Retailer is collecting sales taxes in the 45 states that have state sales taxes and the District of Columbia.
Washington has already talked about taxing online commerce more heavily. Finance Minister Steven Mnuchin said the White House supports Internet sales tax. Some in Congress approved legislation requiring all e-commerce companies to levy state sales tax.
One possible change could affect the growing number of retailers selling through Amazon. Should Amazon and other services be forced to collect sales taxes on the transactions of these sellers, this would likely make Amazon's own inventory look priced better and hurt competitors like eBay, he said in a June announcement to investors.
The president's Twitter attacks appear to be "not well-informed or harmful to Amazon," said Devitt, who has a buy recommendation for Amazon shares with a target price of $ 1,800.
White House spokeswoman Sarah Sanders said Wednesday that no specific guidelines regarding Amazon are being considered.
More: Trump may hate Amazons, but there is little he could do
Trump's Thursday Tweet commemorates one from August 2017 in which he said, "Amazon is badly hurting tax-paying retailers, cities, cities and states in the US are injured – many jobs are lost!"
He also criticized The Washington Post the Amazon founder and CEO Jeff Bezos, and puts it in the category of the "fake news" of the media. "Is the Fake News using Washington Post as a lobby weapon against Congress to stop politicians from engaging in Amazon monopolies?" he tweeted in July 2017 .
Follow Mike TODAY reporter Mike Snider on Twitter: @MikeSnider .
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