What a Trump Presidency Means for Jeff Bezos and Amazon – Changes to Amazon’s Tax Structure
Despite the fact that The Washington Post is not owned by Amazon (it’s owned by Bezo’s personal investment firm and is legally & financially separate from the online marketplace) that hasn’t stopped Donald Trump from speaking out against both business entities and their mutual owner, Jeff Bezos.
It’s no secret that Trump is an outspoken critic of the media, but his antagonism towards an online marketplace might strike some as odd, considering his enthusiastic support of free market business ventures. However, it’s the so-called relationship between the two companies that has sparked his vitriol.
Trump commented to Fox News:
“Amazon is getting away with murder tax-wise. [Bezos] is using the Washington Post for power so that the politicians in Washington don’t tax Amazon like they should be taxed… the whole system is rigged.”
In the same interview, he accused Bezos of having a “huge antitrust problem” due to his high-level involvement in both companies and described the connection between the two companies as “a scam”.
All of this is bad news for Bezos, who had been vocal in his opposition to Trump in previous months, but publicly congratulated Trump on his presidential victory on Twitter.
Trump has gone on record as saying, “”Believe me, if I become president, oh do they [Amazon] have problems. They’re going to have such problems.”
Considering that promise and the inevitability of a Trump White House, Amazon and The Washington Post will likely tread a little lighter once Trump ascends to the presidency.
However, a Trump administration doesn’t necessarily mean it’s all doom-and-gloom at Amazon HQ.
In fact, Trump’s tax plan may actually increase Amazon profits by reducing the business tax rate by 20%.
When it comes to stickier political issues like trade and foreign investments, an analyst named Gene Munster at Piper Jaffray dismissed concerns about Trump’s potential stonewalling against Bezos.
“We do not believe that the mechanics are in place for Trump to impact Amazon.”
Despite reassurances, Bezos has become just a bit quieter regarding his political opinions since Trump won the election. It seems to be business as usual for the head of Amazon during this busy upcoming holiday shopping season, which spells good news and big potential profits for retailers who sell on Amazon.
Changes to Amazon’s Tax Structure – Any changes to Amazon’s tax structure aren’t likely to trickle down to Amazon Sellers, but online retailers should still keep a sharp eye on any developments or announcements in the coming months.
Beth Demmon is a San Diego-based freelance writer whose work has appeared on Amazon Sellers Lawyer, Travelocity, Thrillist, Hipcamp, San Diego CityBeat and RVA Magazine. She can be reached at beth@bethdemmon.com. Follow @iheartcontent