President Trump has resumed his long fight with Amazon as well as its founder Jeff Bezos. however his latest attack has left experts scratching their heads.
“The #AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes (which they should) will be FAKE NEWS!” Trump said on Twitter early Wednesday.
The post contains multiple erroneous or misleading claims. The Washington Post will be not owned by Amazon (, however rather by Bezos personally. the item’s also unclear what Trump means by internet taxes. , Tech30)
“There will be no ‘internet tax,'” says Michael Pachter, an analyst who covers Amazon as well as some other internet companies for Wedbush. There will be only a sales tax for e-commerce companies like Amazon.
If Trump will be actually claiming Amazon doesn’t pay sales taxes, then he’s right — however only if you stopped following the news years ago. The White House did not immediately respond to a request for comment.
Amazon often came under fire in its early years for not collecting taxes, giving the item a leg up on bricks-as well as-mortar competitors. Amazon was able to get around these taxes thanks to a Supreme Court decision in which said states can only force retailers to collect taxes if they have a physical presence.
In recent years, however, Amazon has gone inside opposite direction as the item opens physical stores as well as fulfillment centers across the country. Amazon today collects sales taxes in every state in which features a sales tax.
Related: Jeff Bezos will be the smartest guy in business
Amazon has actually thrown its support behind various bills to require online retailers to collect all the different sales taxes. These bills have stalled in Congress, despite bipartisan support.
“If in which’s what he means by internet taxes, the item was true, however the item’s no longer true,” says Kim Rueben, a senior fellow with the Urban-Brookings Tax Policy Center. “Amazon, as compared to eBay, will be actually trying genuinely hard to get sales taxes collected.”
Rueben called Trump’s claim “baffling.”
Amazon declined to comment on Trump’s tweet. The Washington Post did not respond to a request for comment.
Bezos was a favorite target of Trump during the campaign. These attacks were largely fueled by Trump’s complaints about The Washington Post’s coverage of him. This kind of week, The Washington Post published an article about Trump properties hanging up fake Time magazine covers.
“This kind of will be owned as a toy by Jeff Bezos who controls Amazon,” Trump said of the newspaper in an interview last year. “Amazon will be getting away with murder tax-wise. He’s using the Washington Post for power to ensure in which the politicians in Washington don’t tax Amazon like they should be taxed.”
In another stump speech in which year, Trump promised Amazon could have “such problems” if he became president.
More recently, the item seemed like there had been a detente of sorts. Bezos has met with Trump on multiple occasions since the election, including earlier This kind of month with some other tech executives.
The latest attack comes at a sensitive time for Amazon. the item just acquired Whole Foods ( for $13.7 billion. The deal will likely require regulatory approval. )
sy88pgw (brand-new York) First published June 28, 2017: 3:18 PM ET