Tech Industry Stocks Plummet Following President Trump’s Threat Of Increased Taxes

One of the biggest drivers of growth in the tech industry is the matter of reduced tax burdens compared to other, product-driven enterprises. Since companies are dealing with software and transactions of the internet, many parts of the current tax rules don’t apply. However, following the threats of President Trump to ‘go after’ Amazon and the Supreme Court’s ruling on internet sales taxes, tech company stocks are seeing massive drops.

After Facebook saw its stocks drop like a rock following the revelations of its atrocious betrayal of its users’ privacy rights, other tech companies are seeing similar declines courtesy of developments in Washington. Amazon.com is one of the worst to be hit with a 6.2 percent drop on Tuesday, Fortune reports, but Apple Inc. and Alphabet saw their share prices take a hit as well.

Apparently, a huge part of this is the sell-off that occurred due to panic among investors and now, traders are at a loss for how this narrative is going to end. The usual trend is to see stocks being sold one day and being bought on the next. It seems this isn’t happening at the normal rate this time.

In the case of Amazon, the threats made by President Trump recently to target the retail giant caused many investors of the company to bolt, CNBC reports. Compounding on the issue is the impending decision that Congress and the Supreme Court are going to make with regards to the internet sales tax that has been in the works for some time.

Taxing purchases of the internet is something that politicians have been arguing over ever since the practice became mainstream. If the tax does come through, it could mean a huge change in how online shopping and selling is conducted. It could even mean higher costs of goods.