How much media is controlled by corporations? With the purchase of the Washington Post by Amazon CEO Jeff Bezos, there is concern on the impact this will have on independent locally-owned businesses. To defend Jeff Bezos, the Washington Post recently released an article on the Five Myths About Jeff Bezos. According to this article Amazon did not contribute to the decline of independent bookstores and Amazon did not have an advantage over retailers by not collecting state sales tax.
The Center for Economic and Policy Research countered two of these myths. It’s hard to believe that Amazon did not hasten to decline of independent bookstores when they accumulate over 48% of online sales. Amazon’s dominance even forced a big chain (Borders) to close!
For the past 15 years, Amazon did not have to collect state sales taxes for the goods sold through their website. According to the article posted on the Washington Post, not having to collect state sales taxes did not contribute Amazon’s dominance. Would big-box stores and national chains cry if independent businesses have a tax subsidy?