Going postal: Trump attacks Amazon over shipping costs, tax breaks

"Amazon must pay real costs (and taxes) now!" POTUS tweeted Saturday morning

New York Weekend Edition /
Mar.March 31, 2018 10:09 AM

President Donald Trump. (Credit from left: Ron Reiring, Michael Vadon, Wikimedia Commons)

President Donald Trump is taking on the Amazonian task of trying to get Jeff Bezos’ retail giant to pay taxes and “real” shipping costs via Twitter.

Amazon’s 2013 deal with the U.S. Postal Service for deliveries seven-days a week makes the mail service money and saved it from cutting 100,000 staff, which had been the plan as of 2011 prior to the deal being negotiated, according to Bloomberg. Trump says that the fact Amazon receives a subsidized cost per package is to blame for the service’s losses; Bloomberg attributes the losses to health care coverage for staff.

The issue of Amazon’s taxes, however, is of a different ilk. Last year, the company paid nothing in federal taxes due to “various tax credits and tax breaks for executive stock options,” despite logging $5.6 billion in profits, according to The New Republic.

In the past five years, TRN reports Amazon paid a corporate tax rate of 11 percent and with Trump’s new tax bill coming into effect, the company projects it will be able to rack up nearly $790 million more in benefits, which is how the company was been able to pay zero dollars to the taxman in 2017. Earlier this month, Amazon’s market value hit $768 billion.

“More so than any company I can think of,” Matthew Gardner of the Institute on Taxation and Economic Policy told TNR. “Amazon appears to have built their profit maximization strategy around avoiding taxes at various levels.”

Amazon’s request for tax breaks as part of its ongoing HQ2 search prompted most cities to offer massive benefit packages in attempt to lure the company to their city. [TNR]Erin Hudson


Related Articles

arrow_forward_ios
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Washington Prime Group CEO Lou Conforti (Twitter)
Washington Prime Group files for Chapter 11 bankruptcy
Washington Prime Group files for Chapter 11 bankruptcy
Renderings of Greenpoint Landing in Greenpoint, 141 Willoughby Street in Downtown Brooklyn and 45-57 Davis Street in Long Island City (Photos via OMA, SLCE Architects and J Frankl Architects)
These were the top outer-borough loans in May
These were the top outer-borough loans in May
The New York Life Sciences and Biotechnology Center at First Avenue and 41st Street (NY Life Sciences)
Life sciences leasing breaks annual record in five months
Life sciences leasing breaks annual record in five months
The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
Tax bills show how much Covid devalued NYC real estate
Tax bills show how much Covid devalued NYC real estate
Richard Segal of Seavest Investment Group, David Marx of Marx Development Group and 902 Quentin Road in Brooklyn (Photos via Seavest Investment Group, Marx Development Group and VRMNY)
Westchester firm buys $54M Brooklyn medical building
Westchester firm buys $54M Brooklyn medical building
Real Estate EFTs See Investment Amid Pandemic Recovery
Why investors are rushing into real estate ETFs
Why investors are rushing into real estate ETFs
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...