Amazon Sales Take Hit in States With Online Tax

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April 22 (Bloomberg) -- On today’s “The Roundup,” Julie Hyman, Matt Miller, Cristina Alesci and Eric Chemi wrap up the day’s top market stories on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Have already met.

What is your take on the carriers?

It is exactly what cristina alesci said.

The growth in the past five years, that is gone.

It is all about, what else can i sell?

Can i sell these subscribers other things?

But they will eventually merge into a duopoly.

No, they want to that.

That is too extreme.

We will keep four for the country of 300 billion people.


A separate, but related story to at&t, everywhere you look everyone is getting into the game.

At&t plans to introduce an online tv service by the end of the year.

It is part of the turn in group, that eric just mentioned, to draw content from the web.

The number of americans paying for television from cable, satellite, or phone providers fell for the first time last year.

But now you've got at&t, apple, sony, area oh --aereo offering its own version of this.

You have intel developing something.

What will differentiate any of these things once they come out?

Maybe it is like those for phone companies, they just need to be in the business.

At&t tried to buy hulu last year and could not get the deal done.

Now they will try this way to compete against them.

$500 million is nothing to at&t when they are a $100 billion company.

But those guys are pretty new, with the exception of peter chernin, who helped to start hulu, and that has not turned out great.

But this is a new business for at&t. how will you compete with netflix?

They have a billion wireless subscribers.

They have a base.

I'm still stuck in this theme, and i listened to a lot of jello biafra on the way to work this morning.

It is going to be a common thing, the four companies.

Is that a common theme of his music echo -- of his music?

He is the singer that did a lot of spoken word.

Moving on, attorney general eric schneiderman said more than 60% of eighth -- air b&b sites are illegal according to state laws.

Air b&b said it expects to generate $768 million in economic activity in new york this year.

If you rent an apartment, there are usually certain rules where you cannot sublet it.

But people do it.

We all know that, but none of us care enough to not used air b&b and do it anyway.

Here is the thing.

I got an e-mail today from someone in my co-op, because we have a listserv.

And they said, this is the reason why we should ban air b&b from our co-op, because i don't think they have technically done it.

They linked to a story from "the new york post" which was about hookers using air b&b. why do hookers always get such a bad rap?

They are a california company and a lot of the new york politicians said, they are not from here and don't care about our community.

The definition of what is an illegal hotel is very unclear.

That is why they are in court today.

Air b&b says, look, we are getting rid of the bad actors.

We don't need the governor -- government to do this.

And we talked about this earlier, that they have to go public.

They don't want any regulatory risk overhang in their f-1 filing.

That is the only reason they are doing it.

If they didn't want to go public, they would not be doing that.

It is a breath of fresh air.

Let's move onto amazon, because sales are taking a hit in the face of the election of online tax.

A new study found that states that have a tax, the households have been reducing their spending on amazon by about 10%. amazon collects a -- sales tax in 20 states.

This is interesting, because a lot of analysts on the street couple of years ago were saying, this is not going to happen.

That is not amazon's business and it won't matter.

And then bam.

The study is not conclusive, we should mention.


And it still showed an increase in demand for amazon.

Maybe they were spending less, but more people were still using amazon.

And it is unclear whether amazon charges less in those states.

In the past, amazon has gotten in trouble from doing that and it has backed away from that.

This is not clear up the debate on the issue.

It doesn't. but to your point, the study showed that people leaving the main amazon site were going on amazon marketplace instead of buying it there, which is the sort of middleman service that they offer to online retailers so that those guys can sell without collecting a sales tax.

But amazon still gets a cut.

That is what it is, because the brick and mortar stores are only getting about two percent.

Other online competitors are gaining 20%. it is not like retail stores are benefiting at all from any of this.

It is smaller online sellers they get the benefits.

Speaking of this free country, what have you got?

This free country that is not as wealthy as it once was, america, he -- land of the free, home of what used to be the world's richest middle class.

Not anymore, though.

After class middle-class incomes in canada are now higher than in the u.s. median incomes in western european countries still trail us, but the gap is much smaller than a decade ago.

If you look at a 2010 median per capita income in the u.s., you are talking about $18,700. inflation-adjusted up 20% since 1980, but unchanged since 2000. we have had this stagnation in incomes in the u.s., where in other places they are still going up.

Average incomes are still higher, because the rich skew us so much.

But median incomes are now lower.

That income gap will be really interesting in the midterm elections.

We will see if the congrats keep on this issue of income inequality.

A recent book just came out from an economist from the paris school of economics that basically says that the rich just keep getting richer and none of the benefit goes to you.

You know, simple takeaways.

But i could write a book about a cliche, too.

The bottom line is the bottom line on capital is greater than wage growth.

That is the problem.

It actually applies more in europe than it does in the u.s. i think berry rattled just put out a story on bloomberg that talks about the richest people in new york.

When you look at the breakdown, the top one percent, there are only 3500. i expected a lot more.

Speaking of people that are not in the top 50%, new research shows that from 2006-12 from u.s. -- in a study from ucla, there was a skyrocket of adults moving back in with their parents.

Now we see about 200,000 californians in that age group living with their parents.

That is depressing.

It might not be that they are moving back in because they had no money.

It could be that their parents need some sort of care.

The research specifically said it is a cut they do not have any money, not because of health reasons.

I'm just saying, if your parents need care that you would normally bring in a third party to do, like a nanny only for your parents, you might do that yourself if money is tight.

And i don't think that is depressing either, because i love my parents.

But it suggests that people are all of a sudden 68% more unhealthy than they were several years ago.

That is a good point.

But has also been going up and up.

And with the aging of the baby boomers, one would think as health care gets marks pensive and as people get more older, and as the kids of these people have less money -- all of these things, you would think that statistic will only go higher.

And it has been.

In california alone, over 2.5 million adults live with their parents.

That is 10% of the state.

It is like italy.

[laughter] in italy, kids move back in with their parents because they want good meals.

I have another story for you guys.

You will probably not get powdered alcohol anytime soon.

First, the out call and tobacco bureau approved the use of powdered alcohol that fits in your pocket.

And then it said the approval was a mistake.

The associated press said approval had been given for every variety of alcohol products in powder, but were granted accidentally.

Palcohol said there seems to have been a discrepancy about how much alcohol was in the bag.

Who has even heard of this, p alcohol?

And they also set on the website that it was a bad idea to snort it.

There is a lot of money there.

Apparently, the guy who invented this is a mountain climber and he wanted to have a beverage after one of his tricks -- treks, but didn't feel like bringing up the liquid.

I have a bit of respect for that.

If i want a martini, i'm not

This text has been automatically generated. It may not be 100% accurate.


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