Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member., Inc. (AMZN): Is It Lobbying Against Its Own Self-Interest?, Inc. (NASDAQ:AMZN) has made millions of satisfied customers by creating a shipping experience that is easy, convenient, with strong customer service and very low prices. And for the better part of two decades, has taken very full advantage of a little taxation loophole that has allowed it to charge its low prices up front and not being required to tack on sales taxes. But as we are sure you have noticed lately, the U.S. government is attempting to use its right to regulate “interstate” commerce by moving forward with a bill that would require online retailers such as Amazon to add and collect sales tax for the state in which the good or service is delivered, instead of from where the good or service is ordered.

For years,, Inc. (NASDAQ:AMZN) had this huge competitive advantage over many brick-and-mortar stores because it was not forced to charge sales tax on its orders unless it had a presence in the sate (a warehouse, a data center, an office building, etc.). But with many retailers complaining about the advantage (and because many of these retailers cannot afford to lower their margins for risk of loss), these companies have been successfully lobbying to get the federal government involved., Inc. (NASDAQ:AMZN)And who can name three things that the federal government handles well when it has gotten involved?

One writer was suggesting that, Inc. (NASDAQ:AMZN) was actually lobbying against its own self-interest, and pushing or this law to go through. Why?

Image:, Inc. (NASDAQ:AMZN)

The claim is that if is going to be targeted for this, then the playing field needs to be evened out. That has been the claim of the brick-and-mortar stores in the first place – they have to charge sales tax and online-only retailers don’t, and that’s not fair. wants to expand the legislation to ensure that even the online versions of Best Buy Co. Inc. (NYSE:BBY) or Target Corporation (NYSE:TGT) can’t skirt around the legislation by collecting  in-store taxes but not having to collect  online orders.

Here is the bottom line of this article – the beauty of online convenience is just that, convenience. And part of that convenience comes with a price – namely shipping costs, for which brick-and-mortar stores do not have to charge. And in a lot of cases, shipping costs might be more than the taxes people would pay for the same item inside a brick-and-mortar retailer. Therefore, adding sales tax to online orders doesn’t necessarily balance out the playing field – but what might truly balance it out?

Rather than trying to increase competition through legislation, some of these retailers, like Best Buy and Target, are beginning to conduct “price-matching” with, Inc. (NASDAQ:AMZN). A customer can go into a brick-and-mortar store describing Amazon’s price for an item, and the retailer claims that it would match or beat that price.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.