Stories

SaveSave story

What Trump's Amazon tweet got wrong, and right

Patrick Semansky/AP

President Trump has taken another swipe at Amazon, tweeting that it is damaging "towns, cities and states throughout the U.S.," paying no taxes, and killing jobs.

  • His tweet: "Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt - many jobs being lost!"
  • Why Trump is wrong: As of April, Amazon does collect taxes on goods sold from its own inventory for every state in the union that has a sales levy.
  • Why Trump is right: Amazon has been a buzzsaw through big swaths of traditional retail, including brick-and-mortar bookstores, department stores and apparel shops. Tens of thousands of jobs have been lost, along with sales taxes that fund local services. And Amazon doesn't collect sales taxes on goods sold by third-party affiliates, unless it is contracted to do so by those sellers. Amazon declined to comment, but has said previously that close to half the items sold on its site are from third-party affiliates.