The president Donald Trump accused Amazon.com by tweeting that Amazon is creating much damage to the retailers of taxpaying.
As per his words on twitter- “Amazon is doing great damage to taxpaying retailers. Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!” This is what he tweeted on Wednesday morning that dropped the shares of this company fall by 0.3%.
Earlier he claimed this company as a “no tax monopoly”, which denies from paying internet taxes.
As per suggestion of Mr. Trump’s he says that the Amazon does not pay taxes is wrong. The latest annual report to the “Securities and Exchange Commission” showed that the Company paid $177 million in 2014 in income taxes, and $273 million and $412 million in the year 2015 and 2016 respectively.
If Trump pointed out to the sales taxes that was not collected by the Amazon, then that is correct as the Company once avoided in doing so. It is the one that the retailer collects and is owed by the purchaser. But other critics say that if this comment by Trump was 5 years earlier then that would make sense as now it is outdated.
Trump’s comment attacked the online giant and it briefly abolished $5.7 billion shares of the Company’s stock market. In 2 hours it lost its value by 1.2% within just 2 hours. It is seen that the president has frequently criticized the Amazon Company and also it’s CEO, who own the Washington post as well. Trump himself was once criticized for not realising with his tax returns and also breaking up with the precedent.
Such issues are being tracked about taxpaying and if the court urges in ruling in favour of the states then the other tax departments will start handling it seriously too. Though, Amazon did not respond instantly after this as per reports.