Skip to comments.Amazon terminates deal with 25,000 Calif. affiliates
Posted on 06/30/2011 5:26:00 AM PDT by mort56
Gov. Jerry Brown has signed into law Californias 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
(Excerpt) Read more at jan.ocregister.com ...
Wow! Liberal ingenuity at work.
Yup....their brilliancy knows no bounds..JUST what California needed!
But...I thought amazon was soooooo Socially conscious, so Progressive...guess not when it comes to money.
Reminds me of Bill Gates who was a RUTHLESS take no prisoners Capitalist Pig until he had made his billions.
Perfect demonstration of the concept of a “Zero Sum Game” - the Equalization Board was smoking some serious weed when they made their revenue projection.
Brown and his merry band strike again.
“The state Board of Equalization says...”
That name and what it implies sounds like it is straight out of Atlas Shrugged.
No, they based it on either last years estimate of transaction amounts or an average of the same over the past 5 - 10 year period. Tomorrow, it will be different and CA will be lucky to cover the cost of maintaining and enforcing this new scheme. Plus the cost of picking up some welfare costs for the 25,000 ex-affiliates.
If just 1% of the Amazon affiliates leave, that’d be 250 fewer people minimum doing business there. Suck on it, Brown. I hope it is more. Starve these commies.
all they have to do is stop giving free stuff to illegals and their budget problem is almost solved.
Those 25,000 affiliates won’t be spending much money in kali-fornia,without an income, will they?
I feel sorry for all of them except any obozo/moonbeam supporters.
Place a tax on something — even threaten to place a tax on something — and you will get less of it. These (former) Amazon vendors are being asked to irritate their customers and do the paperwork for no compensation from Governor Moonbeam. You’d think somehow California politicians would have learned that they are the problem and just get out of the way.
I have friends in New York state who will drive thirty miles or more just to buy gasoline in New Jersey where the gas taxes are much lower. It may be a break-even or worse for them but I understand their reasoning.
or the communist manifesto
Choke that greedy evil rich goose! Get those golden eggs!
The fedgov ruins everything it touches.
Using the coercion of the state to change the spending behavior of consumers is like tying two drunks together to walk in a straight line.
California is gone, it’s not even a part of the United states anymore. I mean let’s face it; It’s been conquered by Mexico and therefore Pelosi shoud be expelled from Congresss as well as all future elections for POTUS.
If you still vote Democrat and still believe in the “One”,...then you deserve a Darwin award.
State/National suicide by stupidity.
The Obama voting dweebs who run Amazon are like velociraptors when it comes to bullying states to drop sales tax ideas. Tax avoidance on internet sales is what juices the Amazon machine. I have ordered from Amazon and its affiliates.
Similar to the way U2 assiduously avoids paying taxes in Ireland by domiciling their publishing and other operations in Holland
What is an Amazon Affiliate?
Is that a merchant who uses the amazon platform to do business on the internet?
Atlas <edit> Amazon Shrugged </edit>
How long before a class action lawsuit against Amazon is filed on behalf of the former CA affiliates?
Maybe Amazon believes in free enterprise vice state enterprise?
“Perfect demonstration of the concept of a Zero Sum Game - the Equalization Board was smoking some serious weed when they made their revenue projection.”
This will not be a “zero sum game” as hundreds of those affiliates move out of state to continue their revenue streams from Amazon. The state will lose hundreds or thousands of jobs and the tax revenues derived from those folks...and the places those people shop will suffer from lower spending by the unemployed or relocated former employees affected by the companies who relocate...no, this is a net loss for California, it may take a year or two to see it...but it is without doubt going to cost the state in tax revenue and prospects of economic growth.
I thought the exact same thing when I read it. I thought it was a misprint but no - http://www.boe.ca.gov/
Same deal for me here in north Idaho. I drive to Spokane every day, but I refuse to buy fuel in Washington state. On the average, it's $.10 / gallon higher there due to taxes. F 'em.
And, magically, the new budget becomes UNBALANCED and everybody gets paid!
Sure hope NewEgg opens a Texas office :-(
What's weird is that he's starting to argue like a liberal, talking over the other person, making snide little personal attacks and then making the big lie and just shrugging it off.
Either his personal life is in shambles, his kid has twisted off or he needs acting jobs is the only way I can figure out what happened to this guy.
Is there any doubt, that as federal and state governments start seeing more companies flee rather than pay obscenely high taxes, some brilliant Democrat will propose a law to prevent companies from "escaping?"
Everyone should do it. It’s worked so well for us in California. /s
I abandonded Caltanic in 2001 to Reno....not looking any better here...LOL!
Yeah, I caught Stein’s act on the BOR show last night, Ingraham was sitting in so I watched the show for a change, and he did not blink when she said OK, so we raise the income taxes to confiscatory levels and that means we get 900+billion in tax revenue (extortion). He said yeah, we have to do it. Must be something in the water there in Ca. I wonder if he thought what would happen if they raised the tax to 100% to state income tax receipts? Do they go down or do they send a bill for the extra 15% of income over and above all of it sent to the G?
Unfortunately this deficit debate is not going to end well. Either the US will lose 10% in GDP by only spending what comes in or the dems position to raise taxes and doing little on entitlements wins out. There is a full court press on the latter in the press, political ads and from the senate dems in lockstep with the mistake in the whitehouse.
To some of us Orwell's books were warnings. To others they were blueprints.
“all they have to do is stop giving free stuff to illegals and their budget problem is almost solved.”
We know this. We even voted for just this. And it was ruled “unconstitutional.”
Lots of untaxed commerce on the internet. That attracts tax hungry politicians.
is that your quote? If so well done!
Ben Stein was a Nixon stooge and should have gone to prison.
“I have friends in New York state who will drive thirty miles or more just to buy gasoline in New Jersey where the gas taxes are much lower.”
How long before they have undercover MY State Troopers watching NJ gas stations to catch “tax evaders?”
Amazon's decision to terminate it's dealings with 1/10 of its affiliates is eventually going to lead to a situation where Congress acts to protect the States revenues and specifically makes a requirement that on interstate transactions, the seller must collect the sales tax from their state (no matter where the goods end up).
For a company run by liberals who love the benefits of other people's tax money, Amazon sure has a libertarian/anarchist view of tax laws that affect its business operations.
I’ve seen it said this way before:
“Hey, Democrats, ‘1984’ was supposed to be a warning, not a guidebook”
“Its been conquered by Mexico”
That’s a little over the top.
“Zero Sum Game”
Maybe you were being clever here referring to an Obama scheme as a Zero, but what has happened is not a ZSG.
In game theory and economic theory, a zero-sum game is a mathematical representation of a situation in which a participant’s gain or loss is exactly balanced by the losses or gains of the other participant(s).
This thing is just a lose/lose game.
Ya gotta love liberals for at least one thing - they are the baseline from which all intelligence should be measured,
Nice. Permission to steal this?
Sounds like something out of Atlas Shrugged. What next? The Anti-Dog-Eat-Dog Rule?
In other news: