Rural communities just thought Wal-Mart was the great job killer. Now comes Amazon.
"If Amazon continues to grow its business by $20 billion a year, the annual toll of lost jobs for merchants, buyers and cashiers will be in the tens of thousands by my calculations," is the spin on Amazon by Scott Galloway, professor of marketing at the NYU Stern School of Business, in a recent Wall Street Journal article. "Disruption in the U.S. labor force is nothing new—we have just never dealt with a company that is so ruthless and single-minded about it."
At least Wal-Mart hires local folks and pays local and state taxes.
According to Galloway, Amazon "has replaced the expectation for profits with a focus on vision and growth, managing its business to break even while investors bid up its stock price." Amazon's efficient business model, what Galloway calls "a search engine with a warehouse attached to it," minimizes employment and taxes.
"Because Amazon is more efficient than other retailers, it is able to transact the same amount of business with half the employees," wrote Galloway.
He also said things are "deeply amiss" when "the fifth most valuable firm in the world" can get away "without paying any meaningful income tax:"
"Since 2008, Wal-Mart has paid $64 billion in federal income taxes, while Amazon has paid just $1.4 billion. Yet, while paying low taxes, Amazon has added $220 billion in value to the stock held by its shareholders over the past 24 months—equivalent to the entire market capitalization of Wal-Mart."
The Amazon story becomes particularly important as Congress and our Legislature move to revamp tax laws. We can only wonder if our tax writers even understand the vast changes in worldwide business models, much less how to levy taxes fairly.
Who's gonna pay how much towards our $4 trillion federal budget and our $6 billion state budget are top-of-the-mind questions for most Americans.
"If a giant firm pays less than the average 24% in income taxes that the companies of the S&P 500 pay, it logically means that less-successful firms pay more," noted Galloway. "In this way, Amazon further adds to the winner-take-all tendencies plaguing our economy."
If the biggies avoid taxes we know who's left to pick up the difference.
In Washington, politicians are trying to spin big tax cuts for corporations and the wealthy as a good thing for the average guy. The spin is so intense it's got conservative Republicans saying it's okay for tax cuts to increase the national debt. Huh?
Down here in Mississippi the spin on tax collections is positive. For the first quarter of fiscal year 2018 tax collections are up say news stories - 2.6% over last year. Further down in the stories you see that tax collections were up the first two months but dipped for September - 4.5% below last year. The dip, which should be of concern, was downplayed.
Meanwhile, lack of jobs and declining state and federal spending play havoc with our rural communities. They need a Rumpelstiltskin who can spin all this into gold.
(Thanks to Kingfish for sharing the WSJ article.)
Crawford is syndicated columnist from Meridian (crawfolk@gmail.com)
Kingfish note: One thing Mr. Crawford doesn't mention is that the cities don't get a share of the Amazon tax in Mississippi.
Saturday, October 14, 2017
Bill Crawford: Here comes Amazon
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Trollfest '09
Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.
Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).
Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.
Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".
In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.
In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.
Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.
Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!
This is definitely a Beaver production.
Note: Security provided by INS.
Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).
Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.
Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".
In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.
In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.
Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.
Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!
This is definitely a Beaver production.
Note: Security provided by INS.
Trollfest '07
Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.
There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.
If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!
This is definitely a Beaver production.
Note: Security provided by INS.
There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.
If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!
This is definitely a Beaver production.
Note: Security provided by INS.
23 comments:
As the libo he is, Crawford is consumed with taxing everything known to man!In the words of the late, great Governor Kirk Fordice "he has never signed the front of a payroll check."
Without taxes this place won’t run.....period.
Amazon has opened fulfillment centers that employ over 2000 in Ohio. Perhaps a laid off employee from a failed Walmart should take their resume over to The fulfillment center, word has it Amazon has a fantastic benefits package.
Well, all very unfortunate, but really, is this any different from the cry of the horse-and-buggy trade once automobiles became the way to go? Times change, and the working business model of past days becomes cumbersome and outmoded. Sic transit everything. I love supporting my little local merchants, but also use Amazon all the time. Not sure what that makes me...
last year, state spending increased by over 13% from previous year. Over $2B increase in state spending
An analysis of state, local and federal spending would better serve than trying to find more ways to take more money from the citizen
There is no greed like government's greed. God forbid they learn to do with less income.
And, fwiw, amazon collects sales taxes on stuff they sell.
Serious question, KF -
Why does this anti-capitalist douche canoe get to post his boring drivel here regularly?
Native Seattlites don't too much care for Amazon either. Jeff Bezos thinks he's king of the city.
This tax break they're wanting to pass is going to balloon national government debt. It will mess things up and then a democrat will be voted in to fix it. Rinse. repeat.
There are basically two scenarios when it comes to this debt problem; either we'll become the next Greece OR the central banks of the world will just collapse and we'll have to figure out a new monetary system. I'm at the point to where I think the later of the two is more likely to happen--it plays into the notion of a global currency.
Actually, the situation is more like all of the world becoming like Greece simultaneously and we'll suffer so bad that a new, global banking system will be the only solution to continue global commerce and trade or we can just barter. One thing I do know is that the militarization of local police forces ins't just for pork barrel politics. There's a reason.
@1224 Over $2B more in state spending in Mississippi? Please back up that claim.
The rural areas of Mississippi will be completely gone in a few years.
Liberal or not, this article is spot on. Amazon has had an unfair advantage over companies located in the state. This is starting to change for the better. But if your kids or grandkids live and work in MS who gives a rats a$$ how many jobs a fulfillment center in Ohio employs? If you are too dumb to understand what it means to send all your money out of state than you are too dumb to find employment elsewhere when your local job closes shop.
Why is it that business innovates, and government stagnates? Are there no visionaries in government? It seems that state government could find opportunities to automate, consolidate and realize efficiencies through technology and reduce the cost of it. As long as Mississippi continues to feed the cowboy (government) and starve the horse (the economy), the state will never get ahead.
If the guy from The American Conservative is correct, a tax break FOR a British tea company is the last straw that caused the Boston tea party. Apparently they knew that an unfair advantage via taxation would put them at a disadvantage if not out of business.
One issue in this article that is discussed is not an issue of "anti-capitalism", but an unfair advantage via taxation which is sometimes called crony capitalism. It's a hot button issue not only for capitalists, but employees as well. If NAFTA and the TPP are "free trade", then my wiping buttocks is an investor-state dispute settlement.
If taxation equals theft, then why is it okay for government to steal more from one business than it is another?
I used--key word is used-- to be a buyer at Macy's, a company in St. Louis called may dept. stores and lastly McRaes. Amazon is killing traditional brick and mortar stores. Been in a wal-mart on Saturday or Sunday lately. No line whatsoever. creative destruction at its finest. I'm not worried about the tax dollars, I'm more concerned about the jobs, which ultimately provide tax dollars
I used--key word is used-- to be a buyer at Macy's, a company in St. Louis called may dept. stores and lastly McRaes. Amazon is killing traditional brick and mortar stores. Been in a wal-mart on Saturday or Sunday lately. No line whatsoever. creative destruction at its finest. I'm not worried about the tax dollars, I'm more concerned about the jobs, which ultimately provide tax dollars
Fierce competition breeds significant innovation. This year I have used Walmart’s Grocery app to shop for groceries and household items, and reserve a time to drive to my local Walmart store where very nice local Walmart employees load my car. No lines, and no waiting. If there had never been an Amazon, would Walmart have ever taken the time to innovate in this way?
Also, I agree there’s an unfair tax discrepancy between the two behemoths: Walmart is obviously paying too much!
With all that shipping, it's a wonder the USPS is a sinking ship instead of getting in on the action.
It's ok to wonder about and worry about where jobs are going to come from in the future. But if I need crap that is not unique, there's no advantage to be that crap from a local store versus Amazon. So let Amazon sell us crap, while local stores continue to sell us things that require hands on support and service. Fighting to keep minimum wage jobs at Dollar General or Walmart, is a waste of time. You can't fight the future.
USPS is in on the action. Unfortunately, one analyst believes they are getting hosed in the process:
http://fortune.com/2017/07/16/amazon-postal-service-subsidy/
@ October 14, 2017 at 2:44 PM
I'll do you one better, ask them whether the additional "$2 billion in spending" came from General/State funds or Federal funds.
Because I will guarantee you one thing, any additional money spent was appropriated from Federal dollars.
@ October 14, 2017 at 11:34 AM
Hell, tell that Triple Cheese Tater Thot Maximus and Joey "It's not your money" Filingane
Does that include Medicaid or not?
@ Kingfish
There weren't any increases for Medicaid in FY2017 or FY2018
In FY2017 the state contributed $949 million and the Feds contributed $5.1 billion
In FY2018 the state contributed $918 million and the Feds contributed about $5.1 billion again.
So Medicaid didn't have anything to do with @October 14, 2017 at 2:44 PM - so-called "Additional $2 billion in state spending.
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