Shopping Discussion

U.S. President slams Amazon for hurting retailers and causing job losses.

  • Last Updated:
  • Jan 2nd, 2018 10:59 pm
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Oct 26, 2003
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HillEra05 wrote:
Jan 1st, 2018 9:17 am
I don't really like retail marketplaces. Average person has no clue what they are selling, and/or they eyeing/spying on you like if you're going to steal something.
What's annoy me the most is that when a deal is posted and when I go to the store to get it, there is no stock, even though the site shows stock.
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Sep 16, 2004
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Really is up to the consumer.
I try my best not to support Amazon or Walmart for this very reason, but sometimes the stuff cannot be gotten anywhere else, or as conveniently.
I like how MEC informs the customer clearly of Made in Canada stuff vs Made in China and the price reflects it.
This is definitely an area Governments can legislate to inform the consumer as much as possible.
In a free society though it's really up to the consumer and how they wish to spend their hard earned dollars.
I wonder if Trump would have a problem if he was the one owning Amazon?
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Jul 24, 2009
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The loss is only from the retail portion of the business. The company itself is earning money. Sometimes, the company reports loss so that they don't need to pay tax (probably that's why Trump is so angry). Some expenses in the statement are not really a cash expense. Also, big company can always borrow money from banks or issues new stocks/bonds/other investment derivatives to existing investors.
divx wrote:
Jan 1st, 2018 1:44 pm
How can they afford to take a loss when big box store can't?
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Aug 2, 2001
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I wish Trump wasn't so confrontational and instead chose to us his influence to spark conversation. I think it would lead to more meaningful dialog.

Amazon has paid a pittance in corporate tax within the US compared to Walmart (and others - something like 1.4B to Walmarts 64B in past 10 years). It's reasonable for the US to call them out if they are sheltering their money elsewhere. It doesn't just go for Amazon - Facebook, etc. do the same thing. It hurts the US when these companies use tax loopholes and move their money overseas to avoid paying tax in the US. Heck, up until recently Amazon was refusing to charge US state sales taxes. That hurts those states too.


It's just Trump has, in my mind, lost a lot of pull with the average person. The reaction is to dismiss rather than seek to understand. But some of what he says makes sense and should spark conversation. Look at the bigger picture - is Amazon paying their share of taxes in the US? If not, what are they doing to avoid it and is that fair to taxpayers? There is no doubt business has to evolve to compete with Amazon - and keep competing in the future. But if they are 13 steps behind because they pay their fair share of taxes that's not right.
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lcmt wrote:
Jan 1st, 2018 1:56 pm
The loss is only from the retail portion of the business. The company itself is earning money. Sometimes, the company reports loss so that they don't need to pay tax (probably that's why Trump is so angry). Some expenses in the statement are not really a cash expense. Also, big company can always borrow money from banks or issues new stocks/bonds/other investment derivatives to existing investors.
sounds like they are doing what everyone else is doing, or you telling me walmart does it differently?
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TrevorK wrote:
Jan 1st, 2018 2:57 pm
I wish Trump wasn't so confrontational and instead chose to us his influence to spark conversation. I think it would lead to more meaningful dialog.

Amazon has paid a pittance in corporate tax within the US compared to Walmart (and others - something like 1.4B to Walmarts 64B in past 10 years). It's reasonable for the US to call them out if they are sheltering their money elsewhere. It doesn't just go for Amazon - Facebook, etc. do the same thing. It hurts the US when these companies use tax loopholes and move their money overseas to avoid paying tax in the US. Heck, up until recently Amazon was refusing to charge US state sales taxes. That hurts those states too.


It's just Trump has, in my mind, lost a lot of pull with the average person. The reaction is to dismiss rather than seek to understand. But some of what he says makes sense and should spark conversation. Look at the bigger picture - is Amazon paying their share of taxes in the US? If not, what are they doing to avoid it and is that fair to taxpayers? There is no doubt business has to evolve to compete with Amazon - and keep competing in the future. But if they are 13 steps behind because they pay their fair share of taxes that's not right.
maybe amazon isn't as profitable as walmart, tax is paid on net profit, not on gross revenue. i find it hard to believe that walmart would not be doing the same if they could.
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divx wrote:
Jan 1st, 2018 3:14 pm
maybe amazon isn't as profitable as walmart, tax is paid on net profit, not on gross revenue. i find it hard to believe that walmart would not be doing the same if they could.
Amazon is only pays income tax on net profit like everyone else. What Amazon is doing is creating a loss at retail and using profitable areas (Amazon Web Services) to cover the losses and getting a tax break.

You can’t pay tax on negative profit.

The reason why Walmart pays more tax is that Walmart operates in the US and you pay income tax where you operate.

Amazon may base their business in countries where the income tax is low. Amazon has a publishing business for digital books etc. Even though they sell books in he US, the headquarters for books could be based in Hong Kong and that is where profits are reported. If I recall, Hong Kong has a low flat rate income tax. This is just an example, I don’t know how Amazon runs their business.

Apple does the same thing, their iPhone division (most profitable) is based in Ireland where they pay little tax

https://www.forbes.com/sites/leesheppar ... 2df48d20a7

IKEA is another one, the owner of IKEA is the smartest of them all. IKEA is not publicly traded. It is owned by one person. Ingvar created IKEA and sold it to another company for $1. This other company which he also owns is setup as a non profit or charity. All the profits gets funded into this non profit and held in trust and virtually no tax is paid. This is perfectly legal in Sweden.

Now you can see why Walmart pays more.
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Jul 24, 2009
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Both companies should use the same way to do their financial statement. It is not easy to compare when the company itself is in different industry. Amazon now considers as tech company while Walmart still considers as retail stock. The investment from Tech company should be more aggressive than retailer. As the result, expenses should be a lot more.
divx wrote:
Jan 1st, 2018 3:11 pm
sounds like they are doing what everyone else is doing, or you telling me walmart does it differently?
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Nov 18, 2017
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Amazon sells services mainly, does it not? Walmart sells goods directly. Different accounting is to be expected

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