From a price of almost $400, Amazon.com, Inc. (NASDAQ:AMZN) dropped close to 25% year to date, to a value of approximately $297.8, and the company’s probably being pressured by investors to follow a less expensive production model. So, it’s pretty obvious why the company’s trying to be as economically efficient as possible. One of the easiest ways to save something is by playing around with taxes. Amazon.com, Inc. (NASDAQ:AMZN) is not cooking the books, rather looking for easier tax burdens throughout US, according to FOX.
However, this will not be easily managed as states begin to follow up in charging the online transactions made on e-commerce platforms. Amazon.com, Inc. (NASDAQ:AMZN)’s venture into Illinois can prove to be less pleasant than the company’s expected.
“Illinois has been trying to tax internet commerce for the past three years, since 2011, and so far they have passed, in the last three years, two bills and one thrown out by the supreme court and so far they have collected zero in taxes,” said FBN’s Jeff Flock.
There are certain reasons to believe that Illinois might not see that much coming in the state’s vault from Amazon.com, Inc. (NASDAQ:AMZN) as it can just expand some other facilities to cover the demand with relatively little cost.
“Here in Wisconsin they have made a $155 million investment and in Illinois just a $75 million investment. That’s because they got a $10 million tax break here. This is a 1.5 million square-foot facility, employing as many as 2,000, maybe 2,000 plus folks at the holiday season,” informed Jeff Flock.
Furthermore, the Wisconsin fulfillment center is just at the border with Illinois and at about 60 miles away from Chicago, so it will be possible to load off some inventory from the latter state into the former. However, after a certain point the equation will get a bit more complicated and Amazon.com, Inc. (NASDAQ:AMZN) will have to decide anew how to arrange its business. Most probably, it’s already analyzing the state of affairs.
Free Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.