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Title: Amazon ends deal with 25,000 California websites
Source:
Orange County Register
URL Source: http://www.ocregister.com/articles/ ... 6409-affiliate-california.html
Published: Jun 30, 2011
Author: Jan Norman
Post Date: 2011-06-30 09:36:00 by Rudgear
Keywords: Government, Left wingers, Whenallyouhaveisahammereveryth
Views: 8227
Comments: 21
Gov. Jerry Brown has signed into law California's tax on Internet sales through affiliate advertising which will immediately cut small-business website revenue 20% to 30%, experts say. The bill, AB 28X, takes effect immediately. The state Board of Equalization says the tax will raise $200 million a year, but critics claim it will raise nothing because online retailers will end their affiliate programs rather than collect the tax. Amazon has already emailed its termination of its affiliate advertising program with 25,000 websites. The letter says, in part: (The bill) specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by California-based marketing affiliates like you - even if those retailers have no physical presence in the state. We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action. The new law won't affect customers, Amazon said, but added that the immediate termination of the affiliate program also applies to endless.com, myhabit.com and smallparts.com. (Full disclosure: I have a personal website that has been an Amazon affiliate. It made $2 last quarter. That is not 30% of my income.) [More...] Almost all the California Amazon affiliates have fewer than 75 employees and a large percentage have no employees, according to Rebecca Madigan executive director of the Performance Marketing Association, a Camarillo-based nationwide trade association. "This law won't impact Amazon that much but it is a crisis for website owners who make revenue by placing ads on their websites for thousands of online retailers," Madigan said. "Most of them don't have a physical presence in California." California Retailers Association stated: "We thank Governor Jerry Brown and the leaders in the California State Legislature who have demonstrated their leadership and commitment to California businesses by passing and signing e-fairness into law. Small and large businesses across the state have been held at a major disadvantage by the current law that out-of-state online companies like Amazon.com and Overstock.com have exploited for years. This has cost us jobs and revenues." The U.S. Supreme Court in 1992 ruled that states cannot tax businesses that aren't physically within their boundaries. Such taxes would regulate interstate commerce, which is a federal government prerogative. However, New York in 2008 passed a law to require companies with online affiliate advertising programs to collect sales tax for sales through those affiliates based in New York. Since then Rhode Island, North Carolina, Illinois, Arkansas and Connecticut passed similar laws. Amazon is suing New York over the law, and the Performance Marketing Association is suing Illinois. Amazon affiliate Keith Posehn, owner of zorz.com in San Diego, said he had affiliate advertising agreements with more than 70 companies and these programs were 35% of his company revenue before the California legislature passed a similar bill last year. Then-Governor Schwarzenegger vetoed that bill. "We got 70 termination letters in one night before he vetoed it," Posehn said. After that, he started changing his business away from affiliate advertising and has started a new mobile application company. "I have pitched investors and several question the wisdom of staying in California," Posehn said. "Some venture capitalists are very keen on placing startups outside California because start-up costs are less." However, another Amazon affiliate, Glenn Richards, an independent recording artist in Orange County (MightyFleissRadio.com), is angry with Amazon and its head Jeff Bezos. "I think that Amazon.com's decision to throw their affiliates, (including myself) under the bus is a national disgrace," Richards said. "Jeff Bezos should be ashamed of his conduct. His bully boy practice and tactics of extinguishing small business in California should be (condemned). Small business has no power...and no hope to confront Internet giants like Amazon.com." Board of Equalization Member George Runner blasted Brown for signing the law. "Even as Governor Jerry Brown lifted his pen to sign this legislation, thousands of affiliates across California were losing their jobs. The so-called 'Amazon tax' is truly a lose-lose proposition for California. Not only won’t we see the promised revenues, we’ll actually lose income tax revenue as affiliates move to other states."
Poster Comment: Thank goodness Governor Moonbeam returned to correct the state's ills. Its nothing like the state I grew up in.
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#1. To: Rudgear (#0)
I pay NY state sales tax on anything I buy on Amazon. Did they terminate agreements in NY as well?
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
We're not talking about New York, are we? This article is about what California foolishly did. Maybe Amazon is rethinking its New York strategy. A simple solution would be to lower expenditures, rather than seeking to raise taxes as a universal remedy since all it does is encourage more wasteful spending.
war has to do something for entertainment. The voices in his head aren't speaking to him and his imaginary friends have found reasons not to come over anymore.
The internet was invented by the tax payer funded govt programs. The internet should have a national federal sales tax as a re-payment to the tax-payer on their investment.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
Amazon is playing the same game they played in Texas where they pulled out of building a distribution facility because the Republican government wanted to collect sales taxes on Amazon sales in the state.
"Thats because your basically and idiot." All states with sales taxes are going to get around to taxing it at some point.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
The federal govt taxes gas to maintain the roads the govt built. I see no problem the internet cant be taxed for the same reason, especially since the govt funded the creation of the internet.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
Growing up as a kid I remember my Dad price shopping for a nice camera. We lived in NJ and he found the best deal in NYC. He ordered it by mail so he could avoid the NJ (and NY) sales tax. I think that's how it went. My dad was a tightwad and finally loosened his purse strings in his late seventies. He's heading out on another cruise next week.
America has a weird tax system sometimes.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
By removing freedom of choice. How Marxy!
Caught you before your edit...hehe.
Well...in actuality he still should have "voluntarily" paid the NJ sales tax. There's also the practice of the empty box...you buy something in NY and take it with you but have the box mailed to your home out of state...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
Germany has a similar tax system I remembered - federal, state and local (municipality) taxes and their tax system is just as complex. Other first world economies have just a national tax system and few local taxes. So I edited the reply. But I don't see how my comment ended freedom of choice in any case as you claim.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
I remember NJ a few years ago was going nuts when the govt said it would charge back taxes on all such purchases. I am not from NJ but I remember reading that somewhere. Don't know the final outcome.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
It didn't happen.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
Weren't you just making fun of people that remember Amy Carter?
NJ had a complicated but seemingly fair sales tax system many moons ago. Essentials like food and clothing and toilet paper weren't taxed at all - everything else was. One governor a number of years ago decided to tax toilet paper and it created a shit storm. I'm not sure how their sales tax works today.
One has to do with current taxation policies - this Amy Carter thing was a statement Carter made that has no bearing on policy today. In fact the comparison as I understand it to Amy Carter comment is not even the same. Carter was asking Amy's advise. Obama just said his daughters are harder working than the Republicans. Not the same.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
Exactly. It has to do with inexperienced, limp wristed, rubes/tools trying to run the Greatest Nation on Earth. They fail because they're dumb and hopefully not because they are evil. Carter=Dumb. Obama=?. Amy was ugly, too.
A homosexual like you would find a woman ugly. It is to be expected.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
Baiting doesn't work on me, hippy.
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#2. To: war (#1)
#3. To: Rudgear, war (#0)
#4. To: Rudgear (#0)
Thank goodness Governor Moonbeam returned to correct the state's ills. Its nothing like the state I grew up in.
Badeye posted on 2011-04-29 10:30:22 ET
#5. To: Godwinson (#3)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#6. To: war (#5)
#7. To: war (#5)
#8. To: Fred Mertz (#7)
(Edited)
#9. To: Godwinson (#8)
Simplifies everything.
#10. To: Godwinson (#8)
#11. To: Fred Mertz (#7)
(Edited)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#12. To: socalv8 (#10)
#13. To: war (#11)
#14. To: Godwinson (#13)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#15. To: Godwinson (#12)
Germany has a similar tax system I remembered
Liar or Hypocrite?
#16. To: Godwinson (#13)
#17. To: Godwinson (#13)
New Jersey has a single rate sales tax for the entire State.
New Jersey zip codes are within the range of 07000-08999.
Sales Tax is to be charged at the rate of 6% prior to July 15, 2006.
Sales Tax is to be charged at the rate of 7% on and after July 15, 2006.
#18. To: socalv8 (#15)
#19. To: Godwinson (#18)
this Amy Carter thing was a statement Carter made that has no bearing on policy today.
#20. To: socalv8 (#19)
Amy was ugly, too.
#21. To: Godwinson (#20)
A homosexual like you ...
It just worked on you, though.
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