Skip to comments.California’s ‘Amazon Tax’ Already Proving a Bust
Posted on 08/24/2011 12:42:32 PM PDT by americanophile
California recently instituted as part of its budget solution an Amazon Tax aimed at forcing out-of-state, online retailers with no physical presence in the Golden State to collect and remit sales tax in respect of goods sold to Californians where the retailer in question advertises, or maintains an affiliate referral relationship, with websites based within state lines.
Prior to passage of the bill obligating collection and remittance in such circumstances, prominent online retailers including Amazon.com and Overstock.com had threatened to terminate relationships with affiliates, if the legislation became law. Now that it has, and affiliate relationships are being severed, something critics of the legislation say was entirely foreseeable is occurring: Online businesses and entrepreneurs are leaving the state, thus risking an actual reduction, as opposed to marginal increase, in Californias tax revenue.
Last month, news broke of one California-based online entrepreneur who had decided to ditch California and move to Nevada in the aftermath of Gov. Jerry Brown signing the law. I always figured that in California, home to Silicon Valley and a million tech startups, theyd never pass a law like this, said Nick Loper, who formerly operated ShoesRUs and has now opened a new venture, ShoeSniper.
Per the piece in which Loper is quoted, more than 70 affiliates had at that stage already left California, according to online businesses.
(Excerpt) Read more at biggovernment.com ...
Democrats are the Masters of Static Analysis.
They always assume that you are just going to sit there and take it.
That’s why they aspire to Global Government, so that one day they’ll be nowhere to run to, no place to hide.
Assuming we don’t find a way off the planet by then. That would rock their little red wagon.
The NEW ballad of Jed Clampett
Come and listen to a story ‘bout a man named Jed
Poor oil entrepreneur barely kept his family fed
Then one day he was working for some food,
And up through the town come a bumbling clown
(Brown that is, take a toke, what a joke)
Well the first thing you know old Jed’s taxes are to much to bear,
Kin folk said Jed move away from there!
Said California is no place for you to be
So they loaded up the truck and they moved from Beverly
(gon back to the Hills they are, fishn holes, country and western stars)
Well now it’s time to say goodbye to Jed and all his kin
They would like to thank you folks for kindly dropping in
You’re all invited back again to their new locality
To have a heaping helping of their hospitality
(Redneck Hillbillies, is what the press call ‘em now,
Clingers of bibles and guns and to Obama no bow!
Nice folks Y’all come back now, ya hear?)
Terrifying thought, isn’t it?
You've lived in California how long and believed that?!
Our moronic senator, Little Dickie Durbin, is pushing for this for every state. They passed this same ‘Amazon law’ in Illinois where we have lost the most jobs of any state in the nation.
Good luck to the rest of you.
“California is doomed....”
In reality, Caifornia is DONE! The voting welfare set has seen to that.
uh, has Mr. Loper been paying attention? This law appears the normal MO for California.
People seem always to believe their own freedom will be somehow guarded and guaranteed by others of good will and common sense. There’s no concept of what liberty means anymore, or the vigilance it takes from every citizen to maintain a free republic.
Libs hate profits. California loves libs. California hates capitalism.
This is why leftists insist that everything be done at a federal level, so no one can “escape” them and the failure of their ideas can’t be exposed so vividly.
my thots 2...
This is happening at the national level too. Businesses are leaving the US, or expanding operations overseas instead of here, because of poor tax policy.
It sort of makes sense of why they pass some of the policies that they do, in a clear way that I'm not sure I've heard before.
Probably also explain why they only trust the Fed gov, not state.
And why they would try to discredit Perry and TX, by saying they “stole” the jobs of other states.
This is a variation on the phenomenon called "magic thinking". People who engage in it should be prohibited from serving in public office or voting.
The inevitable consequences of State Socialism - readily apparent to anyone with even a nodding acquaintance with history.
Such knowledge is, of course, not expected in Calfornia, a state which is hell bent on self-destruction and is already pulling into the station.
revenue will decrease because existing companies will cut back or leave the state.
Conservatives put their faith in mechanization, automation, computerization and robotics to eliminate such jobs completely ~ starting with middle-management!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.