Why Amazon Just Cut Ties With Lobbying Groups

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Amazon.com, Inc. (NASDAQ:AMZN) recently announced that it was cutting ties with two top lobbying groups in Washington.

Amazon
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The company announced that it is no longer working alongside the biggest lobbying firm in Washington, while also deciding to bring in new advisors following the recent changes in the U.S. tax code from last year. The move comes as the e-commerce retailer faces potential tax charges it didn’t have to deal with previously.

Amazon made the decision on March 23, only six days before President Trump launched a tweeting tirade on the company that sent AMZN shares sliding. The POTUS said that the retailer does not pay enough in state and local sales taxes, which gives them an edge over other retailers thanks to its ability to sell items through the U.S. Postal Service at a discount.

The lobbying firm in question is Akin Gump Strauss Hauer & Feld, a law firm that bring in more lobbying revenue than any other Washington one. Amazon also cut ties with Squire Patton Boggs last Friday, according to a party familiar with the matter.

The online company instead hired Paul Brathwaite of Federal Street Strattegies LLC and Josh Holly of Holly Strategies Inc. Both companies have worked as outside lobbyists for other companies, including Airbnb Inc.

The POTUS took to Twitter to attack Amazon after claiming that the company has gotten too big and should be investigated for anti-competitive practices.

AMZN stock gained 1.1% on Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/amazon-lobbying-online-sales-tax/.

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