The president thinks that Amazon has contributed to the downfall of brick-and-mortar retailers and that it receives an unfair advantage in the form of tax breaks from local and state governments, according to the Axios reporter Jonathan Swan.
"Obsessed." President Trump is reportedly considering altering Amazon's tax treatment as he is anxious that the e-commerce giant may put small, privately owned "mom-and-pop" stores out of business. He "questioned whether the United States Post Office charges Amazon enough for package deliveries" back in December, and in August before that, he claimed the company "hurts taxpaying businesses".
We've asked Amazon if it's commenting on the report, and will update if the company has more to share.
Amazon's growth expectations in the near future remain high, and it will keep on attracting investors.
The U.S. General Accounting Office said last November it estimated that state and local governments could have gained up to $13 billion in 2017 "if states were given authority to require sales tax collection from all remote sellers".
Trump's criticism of Amazon's tax arrangements centers on products sold by third-party firms using its platform, on which it collects no taxes if they are coming from out-of-state retailers.
One issue Amazon could run into is that teens prefer going to physical stores rather than shopping online. While the company was once criticized for attempting to skirt state sales taxes, it now has a reputation as a leader in collecting the levies, which can vary from state to state.
Trump's interest in Amazon may also be linked to his displeasure with Amazon founder and CEO, Jeff Bezos, who owns of the Washington Post.
Amazon's stock is tumbling-it slid 4% on Wednesday, which translates to a loss of $53 billion, reports Gizmodo-and the slide was continuing on Thursday. However, in the event that the President does decide to go after the company with new tax regulations, the tech giant is likely to lose billions of dollars.
He also accuses it of "putting many thousands of retailers out of business". Trump has repeatedly taken issue with the company over sales tax, although the company does collect tax on the items it sells itself. The show did particularly well in states that President Trump won in the election.
"Right now there is no internet sales tax", said Shah, adding his own misdirection about Amazon's tax collecting.