“It is reported that the U.S. Post Office will lose $1.50 on average for each package it delivers for Amazon. That amounts to Billions of Dollars,” Trump said over two tweets. “If the P.O. ‘increases its parcel rates, Amazon’s shipping costs would rise by $2.6 Billion.’ This Post Office scam must stop. Amazon must pay real costs (and taxes) now!”
This comes also as an attack to the “fake Washington post” which has proved to be a threat in criticizing trump’s administration since he took over power. The site is founded by Jeff Bezos who is also the founder of amazon. The president’s tweets early in the week revealed information that the company does not pay the required share of sale taxes. He defended his statements with the need to acquire favourable tax laws and the need for an equal postal service deal that could favour all. Contrary to the information and maths by the president, the federal regulators have found the contract with amazon to be favourable.
“I have stated my concerns with Amazon long before the Election,” Trump tweeted Thursday. “Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!”. The Bezos in the past has responded to the constant accusations made by Trump by declaring that they are not involved with what is published in the newspaper.
Amazon survival is highly dependent on shipping. An increase in its rates would negatively affect the business in terms of the profits realised. They make use of the post office to delivery parcel and have assisted in raising their profits to a higher level as opposed to high amounts of losses realised in the past 11 years of operating. Trump in his attempt to justify the losses realised by the post office, he makes use of the Wall Street analysis to make the decisions which has been out-dated for years. An earlier analysis that was conducted by the Citigroup in 2017 revealed that the postal charging rates were below market rates as well as those for the parcels.
In every year, the federal regulators have made their reviews on the contract between the postal service and Amazon and proved beyond doubt to be profitable.
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