Trump continues attacks on Amazon, Washington Post

President Donald Trump is continuing his attack against Amazon, accusing the company of scamming the US Postal Servic...

Posted: Apr 1, 2018 11:41 AM
Updated: Apr 1, 2018 11:41 AM

President Donald Trump is continuing his attack against Amazon, accusing the company of scamming the US Postal Service.

"While we are on the subject, 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 tweeted Saturday morning.

"The Failing N.Y. Times reports that 'the size of the company's lobbying staff has ballooned,' and that......does not include the Fake Washington Post, which is used as a 'lobbyist' and should so REGISTER," the President wrote. "If the P.O. 'increased its parcel rates, Amazon's shipping costs would rise by $2.6 Billion.'"

He added, "This Post Office scam must stop. Amazon must pay real costs (and taxes) now."

Is it a 'scam'?

The Postal Service is losing money, but its package delivery service is profitable, unlike its letter delivery.

The Postal Service is required by law to cover its costs for delivering competitive products, such as packages for Amazon, and the Postal Regulatory Commission, which oversees the service, set the appropriate share of those costs at 5.5% a little more than a decade ago.

Since then, the service's deliveries of those products have grown substantially, and the United Parcel Service argued in a submission to the commission in 2015 that a realistic appropriate share of costs for delivering packages should be about 24.6%.

A Citigroup analysis last year found that that difference would amount to about $1.46 per parcel, which might serve as the basis for Trump's $1.50 figure. An op-ed penned in July by Josh Sandbulte in the Wall Street Journal cited that analysis in arguing the Postal Service's estimate of costs for delivering packages should be revised. Sandbulte is co-president of Greenhaven Associates, a money management firm that owns FedEx common stock.

In response, US Postal Service executive Joseph Corbett wrote that the op-ed provided an "inaccurate and unfair account," and that the Postal Regulatory Commission has determined each year that the service is covering its costs for package deliveries.

Corbett asserted the Postal Service's financial insolvency is the result of its inability to overcome "systemic financial imbalances caused by legal and other constraints," such as a price cap on revenue-producing products that doesn't take changes in delivery volumes and costs into account.

The Postal Service's biggest money problem is that it has billions in retirement obligations to its workers that it can't afford.

So what does Amazon pay?

Amazon pays the US post office to deliver packages to customers' doors, including on Sundays, and because Amazon ships so many packages though the post office, it's charged at a lower rate than most customers, CNN has reported. But Amazon does not receive a special rate; it pays the rate that the post office charges other bulk shippers.

Neither Amazon nor the post office has disclosed the details of its agreement, but the Postal Service says the deal is mutually beneficial.

On Thursday, Trump tweeted another accusation about Amazon not paying "taxes to state & local governments" and "putting many thousands of retailers out of business."

Amazon collects sales tax in every state that charges one and remits it to the states, which is nearly every state. Amazon also pays local property taxes on its distribution centers as well as on the Whole Foods stores it purchased last year.

Amazon maintains it helps small businesses in a tough retail climate, helping vendors reach a mass audience.

This isn't the first time Trump has accused The Washington Post of being a lobbying arm of Amazon. While both companies are owned by Jeff Bezos, Amazon does not have a stake in The Washington Post.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 501652

Reported Deaths: 10024
CountyCasesDeaths
Harrison34353540
DeSoto32162408
Hinds31977631
Jackson24508383
Rankin22015390
Lee15596235
Madison14597280
Jones13867243
Forrest13461252
Lauderdale11998317
Lowndes11065188
Lamar10522136
Pearl River9547237
Lafayette8557140
Hancock7740127
Washington7443160
Oktibbeha7147133
Monroe6787178
Warren6706176
Pontotoc6677104
Neshoba6642206
Panola6542131
Marshall6476135
Bolivar6323150
Union605794
Pike5824152
Alcorn5676102
Lincoln5439135
George497479
Scott473098
Tippah470381
Prentiss469182
Leflore4663144
Itawamba4640105
Adams4592119
Tate4592111
Copiah448792
Simpson4448116
Yazoo444887
Wayne440072
Covington429094
Sunflower4240105
Marion4232108
Coahoma4168107
Leake408688
Newton381779
Grenada3711108
Stone360664
Tishomingo360092
Attala331789
Jasper330165
Winston314691
Clay308977
Chickasaw301067
Clarke292594
Calhoun279447
Holmes267987
Smith264150
Yalobusha234547
Tallahatchie228251
Greene219449
Walthall218764
Lawrence213140
Perry205956
Amite205256
Webster203046
Noxubee186840
Montgomery179657
Jefferson Davis172243
Carroll169338
Tunica160039
Benton149239
Kemper141941
Choctaw133326
Claiborne132837
Humphreys129638
Franklin120328
Quitman106528
Wilkinson105139
Jefferson94734
Sharkey64220
Issaquena1937
Unassigned00

Alabama Coronavirus Cases

Cases: 820312

Reported Deaths: 15407
CountyCasesDeaths
Jefferson1148731924
Mobile726221339
Madison52362697
Shelby37640350
Baldwin37266552
Tuscaloosa35120612
Montgomery34123740
Lee23540246
Calhoun22236488
Morgan20958378
Etowah19838500
Marshall18381304
Houston17394412
St. Clair16078339
Cullman15468293
Limestone15354199
Elmore15271286
Lauderdale14323295
Talladega13851283
DeKalb12664261
Walker11221370
Blount10207176
Autauga10048148
Jackson9877184
Coffee9211191
Dale8904185
Colbert8877201
Tallapoosa7093198
Escambia6778134
Covington6715183
Chilton6648162
Russell637559
Franklin5969105
Chambers5612142
Marion5010127
Dallas4979200
Pike4796106
Clarke475884
Geneva4575127
Winston4522103
Lawrence4327117
Bibb425386
Barbour357876
Marengo338390
Monroe331664
Randolph329864
Butler326796
Pickens316584
Henry312866
Hale311688
Cherokee302960
Fayette294180
Washington251651
Cleburne247760
Crenshaw245375
Clay243368
Macon234863
Lamar224847
Conecuh186353
Coosa180340
Lowndes175464
Wilcox168939
Bullock151744
Perry138940
Sumter133238
Greene126744
Choctaw88527
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