Date: April 11, 2019
AMAZON’S GROWTH FUELED BY TAX SCHEMES AT THE EXPENSE OF BRICK-AND-MORTAR RETAILERS
Shot: Analysts expect 75,000 more brick-and-mortar store closures nationwide, with many pointing to the growth of Amazon as a key factor…
“In a note to clients this week, [UBS] said ‘store rationalization needs to accelerate meaningfully as online penetration continues to rise.’ Assuming online sales’ share of total retail sales in the U.S. grows to 25% by 2026, from 16% today, roughly 75,000 more retail doors, excluding restaurants, need to close, analysts Jay Sole and Michael Lasser said. That means for every 1% increase in online penetration, roughly 8,000 to 8,500 stores need to close. A lot of that growth is being fueled by Amazon, which is expected to account for about half of the U.S. e-commerce market.” (CNBC, “75,000 more stores need to close across the US, UBS estimates, as online sales and Amazon grow,” Lauren Thomas, 4.9.19)
Chaser: …while overlooking that Amazon has not paid taxes in two years and relies on an endless stream taxpayer dollars to propel its growth.
“Amazon, the ubiquitous purveyor of two-day delivery of just about everything, nearly doubled its profits to $11.2 billion in 2018 from $5.6 billion the previous year and, once again, didn’t pay a single cent of federal income taxes[…]Amazon is no stranger to tax controversies. Last year the company, in a staggering act of hubris, engaged in a year-long aggressive push for huge new relocation subsidies for its ‘HQ2’ headquarters.” (Institute for Taxation and Economic Policy, “Amazon in Its Prime: Doubles Profits, Pays $0 in Federal Income Taxes,” Matthew Gardner, 2.13.19)
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