President Donald Trump just sent a chill down the spine of Amazon CEO Jeff Bezos and his fellow techno-plutocrats by reiterating his support for an Internet tax.
"The internet - they're going to have to start paying sales tax because it's very unfair what's happening to our retailers all over the country that are put out of business," Trump said Wednesday.
In a veiled shot at Washington Post-owner Bezos, Trump repeated skepticism that he first expressed in a tweet late last year about Amazon's impact on the US Postal Service as it struggles to keep up with all the online orders while sinking into financial insolvency.
Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!
— Donald J. Trump (@realDonaldTrump) December 29, 2017
According to one technology analyst who spoke with CNBC, the prospect of an an internet tax has long been an object of tech industry lobbying efforts.
"There's always been a fear for players like an Amazon or a Google that something like this could actually get through," Daniel Ives, head of technology research at GBH Insights, told CNBC. "We believe it's more noise than a real threat."
As we've pointed out in the past, several tech companies and industry lobbying groups rank among the biggest spenders in Washington.
Amazon collects sales tax on products it sells directly to consumers, but is more lax when it comes to sales made on its platform by third party merchants.
Indeed, the trend has already started at the state level.
In June, South Carolina filed a complaint against the online retailer, and Amazon agreed in November to take on additional third-party tax burden in its home state of Washington.
President Trump slams Amazon, telling U.S. post office to charge more from CNBC.
To be sure, America's "retail apocalypse" is expected to accelerate this year. With that in mind, Trump might be pushing to preserve American companies and jobs. However, Amazon isn't the only reason for the flood of retail company bankruptcies: Massive excess capacity, perpetually over-levered capital structures and a constant lack of capital investment have undoubtedly helped accelerate the decline.
Trump made his remarks during the signing of the Interdict Act, which seeks to reduce drug smuggling through the purchase of opioid sensors.
Comments
...and the stock soars.
I agree with Trump. I already pay state sales tax on Amazon purchases here in Texas. But many states don't have the agreement that Texas made with Amazon.
The solution is a flat Internet tax in place of state sales taxes. As long as that tax revenue is distributed to the states on an equitable formula.
In reply to ...and the stock soars. by Fiat Burner
You fucking fascist hypocrit. Spoken like a true Nazi zombie.
In reply to I agree with Trump. I… by IH8OBAMA
LOL, the government is always good at finding areas where something bringing in money can be further squeezed for some new taxes
In reply to You fucking fascist hypocrit… by Simplifiedfrisbee
Tax is theft. Period.
In reply to It's actually called the … by YUNOSELL
Did IH8OBAMA just ask for more taxes?????!?!?!?!?!
i believe we have just reached peak TRUMPTARD
In reply to Tax is theft. Period. by Boris Alatovkrap
I'm making over $14k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://disq.us/url?url=http%3A%2F%2Fwww.Jobzon3.com%3Ab8eR_DQLwGRPVGtFv…
In reply to Did Ihateobama justask for… by Bes
Alot of internet e-commerce stores are now "Mom & Pop" stores. So he would be bashing them to save failed management at the Huge Sears, jcp, Macy's, etc. If they have piss-poor management, then failure is a logical outcome.
Look how Soweeto Mohammed bin Bama tried to force his brand of Soweetocare onto people!
I see no reason to manipulate free markets with more voodoo regulation and/or taxes.
Keep our peeples free!
In reply to Underneath it all the Orange… by Currency Pinto
Boris you're not wearing any accent!
In reply to Alot of internet e-commerce… by Never One Roach
Sales taxes are excise taxes, which are in all ways superior to property taxes or income taxes, both of which--by definition-- infringe on the cornerstone individual rights of property and liberty.
Only anarchist spergs advocate for zero taxes. But if you are willing to allow for the existence of the state, and the ability of the state to tax its citizens to support itself, then you necessarily have to advocate for excise taxes (like sales taxes) as the only just form of taxation.
All that said, I'd support an "internet tax" for the single reason that it would fuck over amazon, and put local businesses on the same tax footing as that piece of shit Bezos.
In reply to Underneath it all the Orange… by Currency Pinto
+1
Taxes on Consumption encourage (most) people to look more carefully at their expenditures.
Thus, when consumption falls, savings rates rise - which is precisely the recipe for long-term sound economic growth - the slow & steady kind like we used to have before Savings & Production were supplanted with Debt & Consumption via easy credit.
In addition, the higher savings rate and consequent lower revenue from consumption taxes, force State legislators to reign in unwise spending. Like say for example, a $2200 fully subsidized State .gov rent check for a townhome rental here in relatively decent part of San Jose, CA for a single woman and her 3 kids...
In reply to Sales taxes are excise taxes… by Buckaroo Banzai
It won't fuck over Amazon at all... Amazon already charges most people sales tax based on the state the packages are being shipped to. All it would do is force mom & pop stores over on eBay to start charging sales tax or go out of business due to the extreme red tape involved with trying to meet every state's sales tax requirements and filings.
Come to think of it, that's probably exactly what Amazon would LOVE to see.
In reply to Sales taxes are excise taxes… by Buckaroo Banzai
I have a way you can make $50 for 3 minutes work, and I'll give you an extra 10 if you swallow.
In reply to Underneath it all the Orange… by Currency Pinto
Only when misused.Even Jesus Christ approved of taxes.
In reply to Tax is theft. Period. by Boris Alatovkrap
Caesar too
In reply to Only when misused.Even Jesus… by Dominus Ludificatio
Tax is theft but why is it that this argument only always benefit them? Flat tax would be a good way to kill these bastards. Leave no way to get out of it or have a write off ever, especially for NGOs. If you can't make them pay too the population has no leverage against them to ever bring taxes down.
In reply to Tax is theft. Period. by Boris Alatovkrap
Slavery also.
In reply to Tax is theft. Period. by Boris Alatovkrap
Where would the revenues from an Internet tax go? Towards new infrastructure capital and repairs, national 'defense', education, health care?
In my fantasy world, Google and Amazon would grab their balls and man up/stand up. Tax us and we're done: full bore John Galt. Fold the companies. Liquidate cash reserves pay them back as a one time/final dividend to shareholders.
Walk the talk one last time as a 'disrupter'. Hit the re-set button. Create the world of pain which is the inevitable conclusion to the trajectory we're all on.
Right on Boris... don't tread on me. Don't steal from me.
In reply to Tax is theft. Period. by Boris Alatovkrap
Taxes are not always theft, it depends on the tax. America got rich behind tariffs, a form of tax. This kept predatory "English" business at bay, and allowed America to develop its industry, and create jobs for American's, not English.
If monopoly forms, then that is stealing in the form of high prices. The proper thing to do is to "tax" the gains away from monopoly and return it to the people it was stolen from. Also, if monopoly forms, a way to suppress it, is to lower tariffs on foreign competitors, which then lowers prices with competition.
The bottom line is LOWEST POSSIBLE PRICE, to then allow economic freedom. Ironically, properly placed taxes lower overall prices. If you are for economic freedom, then you cannot blithely mouth the words, all taxes are bad.
So, it depends is the answer. Sometimes taxes are misplaced, and in that case they are a theft. Misplaced taxes are theft. Proper taxes return thefts, and are a corrective.
By not having a proper money system, and proper tax system (to tax away rents/unearned income) parasites will do things like run property bubbles against civilizations, or have windfall gains due to some sort of scheme they cooked up.
Unearned income and rents are thefts.
The original income tax was sold as a corrective to go after unearned rents. Of course, monopolists and schemers have found ways around this tax. For example, oil companies take their profits on flag of convenience countries like Panama, then jack up the price of crude before it hits the refinery. That way they pay very little tax, and you get screwed.
In reply to Tax is theft. Period. by Boris Alatovkrap
??? Like the new tax bill maybe ??? LOL
In reply to It's actually called the … by YUNOSELL
Ha ha ha ha ha
In reply to You fucking fascist hypocrit… by Simplifiedfrisbee
This is a shot across the WaPo bow is all.
In reply to You fucking fascist hypocrit… by Simplifiedfrisbee
'It was Barzini all along...'
In reply to This is a shot across the… by MilwaukeeMark
I think you misunderstand. This will be a federal tax on TOP of your TX tax or my MN tax.
In reply to I agree with Trump. I… by IH8OBAMA
Of course, that wouldn't work. It would need to be as I outlined in my statement - In place of state sales taxes and to be returned to the states. The Feds or a central processor would just facilitate the payment of the tax to the states.
Brick and mortar businesses are being crushed because their customers have to pay sales tax but Internet purchasers in most cases don't. The playing field needs to be made fair between retailers regardless of what you think of sales taxes.
UPDATE: Hey, I do almost all of my purchasing online. And I, like you, enjoy not having to pay sales tax on a lot of what I buy. I even get 5% back on every Amazon purchase I make.
But, it is killing the local merchants because it's not a fair playing field. The playing field needs to be made fair for all businesses.
In reply to I think you misunderstand. … by syzygysus
Pull the god damned state sales tax then.
In reply to Of course, that wouldn't… by IH8OBAMA
That would be great, but both you and I know it isn't going to happen. But the retail businesses online and brick and mortar need to be given the same rules. The only way to do that is to apply the SAME taxes to all retail sales.
In reply to Pull the god damned state… by SilverRhino
You're the kind of person that would have put governors on the engines of the first cars to keep them at the same performance levels as horse and buggies.
In reply to That would be great, but… by IH8OBAMA
The way I view it is if you want the convenience of an immediate purchase or want to put your hands on something, try it on, double check the color, etc. of an item then you should be willing to pay a sales tax for that experience if you buy something at your local brick and mortar business. But if you don't need any of those things and you want to buy online, then you shouldn't have to pay for the convenience. The key is the damn local brick and mortar businesses need to stop complaining and up their game by hiring personnel that are actually HELPFUL when you try to buy something. A lot of them aren't helpful at all so people have learned to instinctively to just buy an item online, take their chances, and try to avoid the hassle.
In reply to That would be great, but… by IH8OBAMA
Yes, retail and online vendors need the same rules. Like, I should be able to buy a car or motorcycle online, if I want, from the same place the retail outlet orders from. I should be able to order my car directly from the distributor or factory without going through some bullshit stealership whose services I don't need or want. But I can't do that. I can't do that because the crony stealerships have it written into state law that nobody can buy that way.
In reply to That would be great, but… by IH8OBAMA
If brick and mortar are treated entirely differently from internet retail sales wont that contribute to monopoly? Especially with Bezos the whale sitting there with all of the advantage over all of them? Serious question...
In reply to Yes, retail and online… by Jay
Bullshit. Online businesses have to pay shipping fees, so the difference is a wash.
Also, last time I looked, Amazon profit margins were practically zero, so both online and B&M are being crushed at the same time. The entire retail sector is overbuilt, that's why stores are closing, not because of some imaginary sales tax advantage. You impose more sales tax and it's just going to retard retail even more.
In reply to Of course, that wouldn't… by IH8OBAMA
Equitable to whom? Because you know the SJW will want their 'fair share' before any state sees 1 $ of it.
In reply to I agree with Trump. I… by IH8OBAMA
America is so screw up! How is Single Jewish Woman so powerful?! In Russia, we are just say "Back of line for you, Ma'am!"
In reply to Equitable to whom? Because… by Joe Davola
Sorry Donald Trump,,,,,,it won't solve the problem......Washington is the problem. Close it down and sell off the assets.
In reply to I agree with Trump. I… by IH8OBAMA
any tax will be put on the common person..no government or corporate agency will take a hit...Any tax you want, will only make the american average person, more poor, and government and corporations more rich...period
In reply to I agree with Trump. I… by IH8OBAMA
DISAGREE TOTALLY---The USA is loosing on the postal rates charged China based sellers--they pay less than we do to send a small package across town---Makes the administration appear to be owned by China. Chinese goods imported into the USA in containers by larger retailers is higher quality, inspected, and likely charges tax when resold in the USA--all the shit coming in direct from Asia in the USPS E Packets is NOT inspected, No Tax or tariffs paid, NO income tax, NO sales tax, No real estate tax, NO jobs here (Except USPS loosing their ass delivering them even on Sunday)
In reply to I agree with Trump. I… by IH8OBAMA
Here we go again, tax, tax, tax. Why can't you leave well alone. You guys bitch, kvetch, and complain about the swamp and yet, you keep empowering them.
If you don't like Amazon, why not start a rival, and see how easy it is. I thought zerohedge was supposed to be a haven for liberty lovers, no?
In reply to I agree with Trump. I… by IH8OBAMA
Washington Post is only removed by one degree.
Football games are won one yard at a time.
In reply to Washington Post is only… by 45North1
Lex Luthor must die.
In reply to Washington Post is only… by 45North1
2018 is going to be Great!
MAGA!
Underneath it all the Orange Dotard is just another tax-and-spend, debt-loving Democrat
In reply to 2018 is going to be Great!… by wisehiney
No taxation is required as a FedRes head admitted back in the 1950's.
Its there to punish enemies and reward friends.Quite a moment of candor,he was probably drunk
at the time.Just another thing to keep the peons busy and divided.
In reply to Underneath it all the Orange… by Juggernaut x2
Old news. This is so 60 dollars ago.
you're god damn right they should all pay sales taxes. how the fuck is it legal that they don't in the first place? flipping ripoff maggots.
Nobody should pay taxes you fucking idiot- taxes are theft.
In reply to you're god damn right they… by buzzsaw99
fuck that, you drive on a road don't you? you fuckers are worse than free shit army, at least they admit what they are. my state gets ripped off for millions every year. people don't mind paying the tax but they aren't going to figure it themselves and keep a running tally all year. you need to collect that shit at the time of the sale. it is also unfair to local merchants trying to compete.
In reply to Nobody should pay taxes you… by Juggernaut x2
around here we pay for our roads over and over as they use 2 year lifespan concrete and asphalt vs the 20yr stuff the lowest bidder doesn't provide.
In reply to fuck that, you drive on a… by buzzsaw99
do you live in texas? lol - they tear it up and put it down non stop.
In reply to around here we pay for our… by syzygysus