Trump administration looking into Amazon tax concerns

It seems another major tech company is coming under fire, Amazon.

You may have heard that Amazon`s shares fell almost 7% yesterday, wiping away about $32 billion from its value.

The drop came after an Axios report that President Trump is obsessed with Amazon and changing its tax treatment.

White House Press Secretary Sarah Sanders said there are no specific policies being considered, but that the president is always looking at ways to level the playing field for businesses.

So what does that mean for you?

The concern is that online retail seller Amazon gets unfair sales tax treatment, which could put mom and pop retailers out of business.

When you order from Amazon, not all those products come directly from Amazon, in many cases, Amazon is just the middleman to another company you actually buy from.

When it launched, Amazon didn`t collect state sales taxes, which let it keep prices low and gain market share. Only last year, Amazon started collecting sales taxes on products it sells directly to shoppers in states with those taxes.

But, Amazon doesn`t collect local sales taxes, which online retailers argue gives an even bigger advantage to the already huge company.

If it does, former Amazon performance investigator and consultant Chris McCabe says, you could see a change in prices.

"If these sellers, especially smaller business owners, small sellers, are responsible for collecting sales tax in all these different various tax administrations, different states all over the country, it`s an undue burden to them," McCabe said. "And in terms of prices and how it might affect consumers, consumers will probably have to pay more for the items they buy on Amazon from third party market place sellers, and I understand a lot of consumers don`t necessarily know when they`re buying from Amazon retail direct or from a third party market place seller. It`s supposed to be a seamless experience, but those prices will increase if small business owners are found, either by the courts or by congress, to be the party responsible for collecting sales tax in 35, 40 different states. I mean, it`s an undue burden to that business."

Chris said most people just start their shopping on Amazon, find what they`re looking for, and never compare prices on other sites.

Last month, the Treasury Secretary said the President strongly believes the government should permit sales taxes on purchases made over the internet.

The President can`t institute such a tax himself. It would be a long road through congress and then possibly reach the Supreme Court case.