Amazon’s effect on small business ‘still a mix’: SBA's Linda McMahon
Small Business Administration chief Linda McMahon said Wednesday the jury is still out on Amazon’s effect on small business.
“I think it’s still a mix. We are in the throes of taking a look at it,” McMahon said during an interview with FOX Business’ Stuart Varney.
The SBA administrator said Amazon provides startups with an opportunity to boost sales, but it at comes at a price.
“They’re startups that want to increase their sales, but they can pay high fees that reduce their margins,” McMahon said.
President Donald Trump slammed the e-commerce giant earlier this month -- his third attack on Amazon within the week -- via Twitter, accusing the California-based company of taking advantage of the U.S. Postal Service and putting retailers out of business.
"Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!" Trump wrote in a Tweet.
McMahon pointed out that struggling brick-and-mortar retailers are hurting because Amazon doesn’t collect a sales tax on third-party sellers.
“[Amazon is] out for themselves. They’re collecting those sales taxes, but for the third party, they are not collecting those taxes. Therefore, some small businesses are hurt by that,” she said.
