Connect
To Top

Despite TweetStorm, Trump’s Online Store Collects Tax in Only Three States!

Advice

President Donald Trump has not made it a secret that he is against Amazon’s business model. He alluded numerous times that the company does not honor its tax obligations throughout the country.

Incredibly, new revelations that have come to light may help shed some light on the actual situation on the ground. His own Trump Organization retail website collects sales taxes on shipped goods in only 2 states. In contrast, Amazon collects sales taxes in as many as 45 states

Trump’s online store specializes in the selling of baseball caps, spa slippers, Trump-labelled glassware, key chains, and a plethora of other items. Despite having a countrywide presence thanks to the power of the internet, the company only collects sales tax on orders shipped to two states only, Louisiana and Florida. This information can be found on the online shopping website.

The online store prides itself as being the ‘official retail website of the Trump Organization’. Given the fact that Trump has been on the back of Amazon for alleged non-compliance when it comes to tax payments, it’s a bit bizarre to stumble upon such revelations. The company does not pay sales taxes for online shipments in New York, as per the website. This is despite the fact that Trump’s online store is conveniently located in the Trump Tower, Manhattan.

Compliance

Even with his heavy-duty role as president, Trump still has ownership of the Trump Organization. His recent Twitter rantings about Amazon’s failure to pay taxes to both the state and local governments seem misplaced.

His tweets went at length to describe that the U.S Postal Service actually misses out on $1.50 on every package delivered to Amazon. This is because the company pays same charges as other companies that operate in bulk. Another tweet went ahead to find fault in how the Washington Post deflects attention from the misdeeds of Amazon. It is important to note that Amazon’s C.E.O. Jeff Bezos owns The Washington Post.

In truth, the data from regulatory filings show that Amazon has actually been paying its dues. Last year’s statistics show that Amazon actually paid $412 million in local, state, federal and foreign taxes. In 2015, Amazon’s tax payments totaled $273 million. At present, Amazon actually charges consumers sales taxes in 45 states where the tax laws exist, including Washington D.C. The only states that are exempted from the collection of sales tax are Montana, Oregon, Delaware, New Hampshire and Alaska.

Amazingly, Amazon is not compelled by the law to pay such sales taxes. As per the 1992 Supreme Court ruling, a restriction is placed on states, forcing online retailers to pay state and sales taxes provided there are no existing employees or a physical presence in the state

Level Playing Field

Most surprisingly, Amazon actually supports legislation that would create a level playing field for all online retailers. Having such laws in place would ensure that companies like Trump Store actually pay local taxes. At present, it is almost impossible to actually give the exact figures Trump Store has paid in terms of taxes due to the fact that it is a private entity. It is also important to note that Trump has not yet released any tax information.

A spokeswoman for the Trump Store issued a press statement indicating that the online retailer makes a point to comply in all the states that have laws in place requiring sales tax.  Trump Store’s terms and conditions lets consumers become aware that they are accountable for the payment of any applicable tax on purchased items

Oddly enough, the president’s own actions may actually compel Trump Store to play catch up to Amazon. This is especially when it comes to compliance in terms of state sales taxes. Just last month, a brief was filed at the U.S. Supreme Court compelling states to require all online retailers actually collect and pay taxes. The document details that all companies should follow suit. This is irrespective of whether or not they have a physical presence in the said state.

More inAdvice

Related Items

You must be logged in to post a comment Login