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: 253932

Reported Deaths: 5524
CountyCasesDeaths
DeSoto17120175
Hinds16207322
Harrison13353193
Rankin10689211
Jackson10303183
Lee8796141
Madison8232162
Jones6288110
Forrest5949119
Lauderdale5847180
Lowndes5355116
Lafayette494292
Lamar484165
Washington4777123
Bolivar3966108
Oktibbeha392480
Panola368378
Pontotoc362853
Monroe3533105
Warren348498
Union343060
Marshall341665
Neshoba3370152
Pearl River327899
Leflore3002105
Lincoln297085
Sunflower282669
Tate270862
Hancock266559
Alcorn263253
Itawamba262459
Pike262077
Scott246245
Prentiss245052
Yazoo244355
Copiah240849
Tippah240450
Simpson234867
Leake230564
Coahoma230054
Grenada217770
Covington211371
Marion210672
Adams204670
Winston200164
Wayne199630
George199038
Attala193559
Newton191342
Tishomingo184459
Chickasaw183644
Jasper169735
Holmes168567
Clay159033
Stone142320
Tallahatchie140134
Clarke138660
Calhoun135721
Smith120123
Yalobusha116534
Walthall111836
Noxubee110322
Greene109729
Montgomery109434
Carroll104221
Lawrence102417
Perry101631
Amite97725
Webster92224
Tunica86321
Claiborne86125
Jefferson Davis84125
Humphreys82924
Benton81523
Kemper77120
Quitman6888
Franklin66415
Choctaw60313
Wilkinson58325
Jefferson53819
Sharkey42717
Issaquena1596
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Alabama Coronavirus Cases

Cases: 422598

Reported Deaths: 6120
CountyCasesDeaths
Jefferson62039921
Mobile30225548
Madison27052186
Tuscaloosa20728267
Montgomery18978305
Shelby18504114
Baldwin16251182
Lee12465101
Morgan12233113
Etowah11735168
Calhoun11122200
Marshall10191107
Houston8598148
Cullman8023105
Limestone800274
Elmore7836101
DeKalb768397
Lauderdale754683
St. Clair7535120
Talladega6166108
Walker5897174
Jackson580341
Colbert532073
Blount530483
Autauga518455
Coffee441056
Dale396181
Franklin366248
Chilton336165
Russell330310
Covington327268
Escambia316842
Dallas303196
Chambers282769
Clarke281433
Tallapoosa2616107
Pike248729
Marion245650
Lawrence243647
Winston226635
Bibb215147
Geneva201435
Marengo199029
Pickens196531
Hale175842
Barbour172936
Butler169658
Fayette168226
Cherokee160330
Henry153621
Monroe145217
Randolph139835
Washington137626
Clay126145
Crenshaw118744
Lamar118019
Cleburne117423
Macon114735
Lowndes110335
Wilcox103121
Bullock99028
Perry97419
Conecuh94420
Sumter89026
Greene76023
Coosa60515
Choctaw51224
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