President Trump Rips Into Amazon Over Taxes
Shares of Amazon were down 1% in trading before the opening bell following Trump’s blasting tweet. Amazon stock was down 0.5% at the close of business Wednesday.
A Wall Street analyst said that while it was not the first tweet by Trump about Amazon and taxes it was interesting in the way the President linked Amazon to job losses across traditional retail.
Trump bashed “Amazon Washington Post” on three occasions between July 22 and July 24 via Twitter. He blasted Amazon as well in June for “not paying internet taxes.”
The latest tweet by Trump did not draw any comment from Amazon.
During a February 2016 campaign rally, Trump said if he were to be elected president Amazon will have problems. They will have big problems, he said. Trump also claimed that Jeff Bezos the CEO at Amazon acquired the Washington Post so he could obtain political influence.
Steven Mnuchin the Treasury Secretary hinted as well during July that the White House might soon take its position on the tax collection policy at Amazon.
Senator Joe Manchin, a Democrat from West Virginia, asked the secretary of the treasury about his opinion of state sales taxes on internet at a July 26 Senate hearing.
Mnuchin said that it was an issue the administration has looked at carefully and expects to release its position in short order.
The secretary added that he was encouraged that Amazon was now charging sales tax on sales of their products but not the marketplace sales, and said he was not sure if he understood the consistency of that.
Mnuchin was referring to Amazon’s third-party marketplace in which other companies sell their goods on its website.
Amazon offers a collection feature for state sales tax to its third-party sellers said a report released this week, but it was not clear how many of those third-party sellers used it.
As of the first of April, Amazon started collecting state sales tax across the nation for its products that it sells, known as first-party sales, with the exception of the states that do not have their own sales tax such as Alaska, Oregon, Delaware, New Hampshire and Montana.