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Amazon threatens to cut Calif. affiliates over taxes
CNET News ^ | 3/2/11 | Steven Musil

Posted on 03/02/2011 2:29:55 PM PST by Nachum

Amazon.com has threatened to cut off more than 10,000 affiliates in California if state lawmakers pass legislation requiring the Internet retailer to collect sales tax from state residents. Seattle-based Amazon said four bills introduced in the state legislature are unconstitutional because they would require sellers with no physical presence in California to collect sales tax from its residents (Snip) "In no uncertain terms, Amazon has made it clear to me that the checks they send Californians will be cut off overnight if pending legislation aimed at regulating their operations becomes law."

(Excerpt) Read more at news.cnet.com ...


TOPICS: Front Page News; News/Current Events; US: California
KEYWORDS: amazon; calif; cut; economy; taxes; threatens
Way to go. Idjits
1 posted on 03/02/2011 2:29:59 PM PST by Nachum
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To: Nachum

This will be a fun one to follow. I’ll get the popcorn.


2 posted on 03/02/2011 2:31:30 PM PST by RobRoy (The US Today: Revelation 18:4)
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To: Nachum

The Democrat legislature is prepared to scrap any amount of private sector jobs in service to their holy grail of always higher taxes for more looting of the treasury.

It’d be nice if the voters of California were paying attention. But they’ll keep pulling the lever for the thieves and scumbags with the D after their names like they always do.


3 posted on 03/02/2011 2:33:26 PM PST by Argus
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To: Nachum
What is wrong with those people at Amazon?

Don't they understand that all money belongs to the government?

California legislators have a need to spend that money.

GIVE THEM THE MONEY! GIVE THEM THE MONEY! GIVE THEM THE MONEY! GIVE THEM THE MONEY! GIVE THEM THE MONEY!

4 posted on 03/02/2011 2:37:30 PM PST by Amagi (ObamaCare proposed a tax on Tanning Salons. That is RACISM STRAIGHT UP!)
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To: Nachum

Amazon affiliates are frequently people who because of age have absolutely no chance at getting hired for a payroll job in today’s market. This will destroy thousands of lives.


5 posted on 03/02/2011 2:39:05 PM PST by denydenydeny (Power always thinks it has a great soul and vast views, beyond the comprehension of the weak-Adams)
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To: RobRoy

I got the butter and salt :)


6 posted on 03/02/2011 2:40:00 PM PST by Nachum (The complete Obama list at www.nachumlist.com)
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To: Nachum
Just to clarify what this is about:

Amazon has an "affiliate" program. You put an ad for products on your website, and link the reader to Amazon to purchase it.

If the reader purchases the product (and perhaps others?) through your link to Amazon, then Amazon pays a commission to you.

California is apparently claiming that your residence in California and receiving commissions from Amazon on this basis constitute Amazon's physical presence in the state, and thus obligating Amazon to collect sales tax on all purchases made by California residents.

If Amazon drops all the affiliates in California in order to comply, then that means less income for California's residents, and less income tax for the state of California.

7 posted on 03/02/2011 2:40:32 PM PST by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: Nachum

Lawmakers get two things here. Less internet traffic. Destroys jobs. They will be pleased.


8 posted on 03/02/2011 2:44:42 PM PST by ColdOne (AZamericonnie took my tagline & won't give it back!":))
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To: justlurking

Thanks....that helps me understand....what fools!


9 posted on 03/02/2011 2:45:02 PM PST by goodnesswins (I'm not a great man....I just believe in great ideas! Ronald Reagan)
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To: Nachum

I make it a definite “try to” NOT to buy ANTHING that comes from California or any other rabid blue state, period. I look for where vendors are and where things are made. I’d sooner buy something from China.


10 posted on 03/02/2011 2:46:52 PM PST by Gaffer
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To: Nachum

Wait a minute.

The only thing the Feds could do is tax the income from the affiliate’s sales commission. The affiliate’s service started and ended with the sale, BUT they only recieved money from Amazon, not the customer.

This should be shot down, but hey it’s Kaliphornya.


11 posted on 03/02/2011 2:50:27 PM PST by HighWheeler
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To: denydenydeny
Amazon affiliates are frequently people who because of age have absolutely no chance at getting hired for a payroll job in today’s market. This will destroy thousands of lives.

the parasite ruling class will not care one bit. The parasite class lives to figure ways to steal the wealth of others.

the left and RINOs are pure evil. They believe the State is supreme.

I applaud the tough stance by Amazon. All businesses should fight every attempt to have their money stolen by the evil parasites in government.

I fear the only way to stop these parasites is either a total economic collapse or another Revolution. Nothing else will likely stop them.

12 posted on 03/02/2011 2:58:28 PM PST by sand88
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To: justlurking

Sounds like 10,000 more people will be leaving the wonderful state of Kalifornia.


13 posted on 03/02/2011 3:04:54 PM PST by TruthConquers ( Delendae sunt publicae scholae)
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To: Argus

You may not understand how liberals think. They LIKE taxes. They think prosperity comes from taxes.

A flaming liberal friend who is otherwise intelligent, once told me that the only reason we make as much money from our employers is because of taxes. Employers would pay us less if they knew we wouldn’t have to pay taxes on the gross pay.

I kid you not, this is what exists in place of logic in the mind of a liberal. They have no clue what causes or kills jobs. No clue.


14 posted on 03/02/2011 3:12:43 PM PST by Freedom_Is_Not_Free (Don't confuse Obama's evil for incompetence.)
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To: justlurking
California is apparently claiming that your residence in California and receiving commissions from Amazon on this basis constitute Amazon's physical presence in the state, and thus obligating Amazon to collect sales tax on all purchases made by California residents.

Many of Amazon's California affiliates would be hosting their websites on out-of-state servers. While my sites have been designed and built in California, they 'live' on a server in Utah.

15 posted on 03/02/2011 3:14:19 PM PST by Bob
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To: Argus

Problem is after the taxes get too high for them, they move to another state and screw up that one by voting the same way. Ain’t no cure for stupid...


16 posted on 03/02/2011 3:21:35 PM PST by goat granny
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To: Bob
Many of Amazon's California affiliates would be hosting their websites on out-of-state servers. While my sites have been designed and built in California, they 'live' on a server in Utah.

Yeah, this is yet another reason by the whole concept of "location" is outdated.

I have a Vonage phone. It's connected in my home, but has a main phone number in another state -- and yet another phone number in still another state. If I wanted, I could add a number for any of about a dozen countries.

And I can pick up the terminal adapter and take it anywhere in the world that I can get a good connection to the Internet, and then I'll be conducting business from "there".

My personal website is hosted in Nevada. But, I've never been there except for vacation. I do everything remotely through SSH and HTTP(S). The bits all reside in Nevada, but I click the keys and mouse at home... most of the time.

Sales taxes really should be assessed on the buyer, and make it their responsibility to comply. The merchant can't reasonably be expected to know all the different taxing districts and exceptions (which change constantly: does your state have sales tax holidays?).

In my state, a brick-and-mortar merchant is issued a sales tax certificate that states exactly what taxes must be collected. I guess we need one for buyers, too.

Yes, I know that's effectively a VAT. But, if it were to actually replace a tax (rather than be imposed on top of it), I would be less opposed.

17 posted on 03/02/2011 3:29:00 PM PST by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: Nachum
I support Amazon!
18 posted on 03/02/2011 3:31:09 PM PST by Obadiah (If you were going to shoot a mime, would you use a silencer?)
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To: Freedom_Is_Not_Free
I see you've met my brother.
19 posted on 03/02/2011 3:33:09 PM PST by ladyvet ( I would rather have Incitatus then the asses that are in congress today.)
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To: Bob
Many of Amazon's California affiliates would be hosting their websites on out-of-state servers

You can bet your banana on that. There is a work around for everything. My state passed legislation that prohibits the importation of medicine dispensed by a US pharmacy with a valid prescription. Hell, I moved - not literally, but my permanent mailing address did. There are bountiful re-shippers out there who will receive and re-ship your mail and other parcels for a nominal fee. RV'ers have used these services forever because they are always on the move. I can "live" in any state I wish. Idiots!

20 posted on 03/02/2011 3:36:10 PM PST by RobertClark (On a long enough timeline the survival rate for everyone drops to zero.)
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To: Argus

What needs to happen: All businesses that do business in or with California need to tell California where they can go. If enough companies reject California (both the government, and the citizens), then SOMETHING would have to break. Of course, with GM being owned by the Feds... they wouldn’t go along. But other automakers should give them the finger. The utility companies that sell energy to California should turn of the switches/spigots. Amazon and others just say no to selling to anyone in California.

Would certainly be a huge financial hit for many (at least in the short-term). On the other hand - automakers could tell California to stick their emissions insanity.

No more warnings on boxes of handgun ammo that read “this product contains lead, a substance known in the state of California to cause birth defects and even death”...

I cannot understand why anyone would live in a state where so many things are selectively toxic... [/sarcasm]


21 posted on 03/02/2011 3:41:12 PM PST by TheBattman (They exchanged the truth about God for a lie and worshiped and served the creature...)
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To: Nachum

All California needs to do is pass a law that says if you buy something out of state over the internet, you need to then send the sales tax to the state.

Oh, they already did that. So what’s the problem.


22 posted on 03/02/2011 3:56:45 PM PST by super7man
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To: Nachum

Got any coconut oil?

:)


23 posted on 03/02/2011 4:08:18 PM PST by snuffy smiff (Socialism is the philosophy of failure, the creed of ignorance, and the gospel of envy.)
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To: justlurking
If Amazon drops all the affiliates in California in order to comply, then that means less income for California's residents, and less income tax for the state of California.

And Amazon has already done this to affiliates in other states. They aren't just bluffing.
24 posted on 03/02/2011 4:11:26 PM PST by CottonBall
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To: sand88
I fear the only way to stop these parasites is either a total economic collapse or another Revolution. Nothing else will likely stop them.

An economic collapse, if of major, major proportions could well precipitate a revolution.

25 posted on 03/02/2011 4:13:19 PM PST by OldPossum
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To: TheBattman

“I cannot understand why anyone would live in a state where so many things are selectively toxic.”

I still don’t get how California gets paranoid about every little thing that might be even remotely toxic...and then they mandate that aluminum fluoride and sodium fluoride be dumped into drinking water. They’re even entertaining a law to require that bottled water sold in the state be fluoridated because some people, like my family used to when we lived there, used bottled water as a safer alternative to Alzheimer’s inducing public tap water.


26 posted on 03/02/2011 4:20:38 PM PST by MeganC (Soli Deo Gloria)
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To: Gaffer

How’s that working out for you? I guess you don’t use Google or PayPal, or Apple or Adobe products. And since most routers and network hardware are made by Cisco, I guess you’re not on the internet much. And of course, since Free Republic’s founder and servers are in California, you don’t post to Free Republic...


27 posted on 03/02/2011 4:29:20 PM PST by giotto
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To: Obadiah
I support Amazon!

Me too...

I love the free shipping and no tax. Right now I'm a big fan of a few old black and white tv series.

28 posted on 03/02/2011 4:42:12 PM PST by Dr. Scarpetta
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29 posted on 03/02/2011 4:46:28 PM PST by Dr. Scarpetta
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To: TruthConquers
Sounds like 10,000 more people will be leaving the wonderful state of Kalifornia.

10,000 people who have not yet figured it out that it is not the best thing to live in Kalifornia will all of the sudden figure it out that living in Kalifornia is not the best thing to do.

30 posted on 03/02/2011 5:22:39 PM PST by ReformedBeckite ( post 1 of 3 I'm only allowing my self each day)
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To: giotto

(sigh). “try to”...... BTW what CISCO factory
in CA actually “makes” routers? China? Mexico?

Talking about produced goods, etc. where I have
options to buy elsewhere. Of course there are exceptions.
Hence “try”. Bleh


31 posted on 03/02/2011 7:51:40 PM PST by Gaffer
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To: justlurking
Correct me if I'm wrong, but I think you are missing the point on this tax.

California asserts that its "sales tax" is in fact a "use tax" due at the point of sale. That makes it a tax on property. So it matters not to the State where the transaction occurs, but focuses instead upon the location to which the product is shipped for final use.

32 posted on 03/02/2011 9:49:07 PM PST by Carry_Okie (The environment is too complex and too important to manage by central planning.)
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To: ladyvet

These morons are not in short supply and more are being indoctrinated daily. It takes a lot of indoctrination to take somone’s natural common sense and beat it into socialist submission to where the truth can be rationalized away with ease. It becomes like breathing for them. Everything goes through the liberal filter and no new information can get in that doesn’t bolster their preconceived beliefs.

We’ve got to break government schools if this is ever going to change. It won’t stop liberalism but it will make their job of brainwashing that much harder. The coming death of the MSM as internet bloggers replace them, is a huge benefit as well.


33 posted on 03/03/2011 10:41:09 AM PST by Freedom_Is_Not_Free (Don't confuse Obama's evil for incompetence.)
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To: Nachum

Michael Moore will sit on Amazon’s CEO if they do this. Then he will beat him with his tiny pudgy hands and say “You beast! You greedy bastard!”


34 posted on 03/03/2011 10:45:43 AM PST by listenhillary (Social Justice is the epitome of injustice.)
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To: Nachum
Way to go. Idjits

Amazon Is Ditching "Pro-Business" Texas Because Of A Fight Over Taxes

http://www.businessinsider.com/texas-amazon-location-2011-2

35 posted on 03/22/2011 12:17:39 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Amagi; justlurking; ColdOne; Gaffer; HighWheeler; TruthConquers; sand88; Obadiah; TheBattman
California legislators have a need to spend that money.

All businesses that do business in or with California need to tell California where they can go.

the only way to stop these parasites is either a total economic collapse or another Revolution. Nothing else will likely stop them.

Sounds like 10,000 more people will be leaving the wonderful state of Kalifornia.

Amazon Is Ditching "Pro-Business" Texas Because Of A Fight Over Taxes

http://www.businessinsider.com/texas-amazon-location-2011-2

36 posted on 03/22/2011 12:29:21 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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