Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Amazon.com: State stands up to anti-tax attack
San Francisco Chronicle ^ | 3/4/11 | Andrew S. Ross

Posted on 03/04/2011 3:30:36 PM PST by SmithL

Is Amazon.com getting nervous?

How else to explain its intemperate letter threatening to put more than 10,000 Californians out of work should the state even think about enforcing the collection of unpaid sales taxes on Amazon and other Internet retailers?

"I'm not surprised by what Amazon's done," said Board of Equalization Chairwoman Betty Yee. "I think it's their way of getting California to back off."

Support has been growing for legislation, backed by Yee, that would clear the way to collect an estimated $1.145 billion in unpaid taxes that out-of-state online merchants such as Amazon, and catalog houses such L.L. Bean, have thus far successfully evaded.

"If any of these new tax collection schemes were adopted, Amazon would be compelled to end its advertising relationships with well over 10,000 California-based participants in the Amazon 'Associates Program,' " the company wrote to a receptive Republican tax board member, George Runner.

The "associates," or affiliates, get a cut of every sale Amazon makes to customers via a click-through from affiliates' websites.

"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," said Runner, one of the elected board's five members.

(Excerpt) Read more at sfgate.com ...


TOPICS: Business/Economy; Extended News; Government; US: California
KEYWORDS: amazon; antibusiness; bettyyee; goldenstate; taxandspend
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-78 next last

1 posted on 03/04/2011 3:30:41 PM PST by SmithL
[ Post Reply | Private Reply | View Replies]

To: SmithL

I’m kinda not on Amazon’s side here. They are coming off as imperious as in “only suckers pay taxes”


2 posted on 03/04/2011 3:32:38 PM PST by dennisw ( The early bird catches the worm)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SmithL
Amazon.com: State stands up to anti-tax attack

What a perverted headline.
3 posted on 03/04/2011 3:38:31 PM PST by Vision ("Did I not say to you that if you would believe, you would see the glory of God?" John 11:40)
[ Post Reply | Private Reply | To 1 | View Replies]

To: dennisw
I’m kinda not on Amazon’s side here. They are coming off as imperious as in “only suckers pay taxes”

only suckers do pay taxes.

4 posted on 03/04/2011 3:38:39 PM PST by Dick Vomer (democrats are like flies, whatever they don't eat, they sh#t on.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SmithL

Amazon has done this to Colorado and has threatened to do this to Illinois as well.

They are well within their rights to, in my opinion. If those are the rules, they have to right not to do business in the State.

Otherwise, it’s slavery.


5 posted on 03/04/2011 3:38:56 PM PST by Anitius Severinus Boethius
[ Post Reply | Private Reply | To 1 | View Replies]

To: dennisw

Maybe if California did not have confiscatory taxes, the residents of CA would not be looking so hard to avoid them. With the lowest sales tax rate in CA being 8.75%, and some counties running 10%, who would not want to avoid the sales tax, especially considering how high the state income tax is. It doesn’t take a great deal of income before one finds oneself in the 11% income tax bracket.


6 posted on 03/04/2011 3:41:19 PM PST by CdMGuy
[ Post Reply | Private Reply | To 2 | View Replies]

To: SmithL
Board of Equalization?

That sounds like something out of Atlas Shrugged.

7 posted on 03/04/2011 3:41:55 PM PST by SaveTheChief
[ Post Reply | Private Reply | To 1 | View Replies]

To: SmithL

the problem in most states has nothing to do with a shortage of taxes...


8 posted on 03/04/2011 3:42:05 PM PST by mo ("If you understand, no explanation is needed; if you do not, no explanation is possible")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Anitius Severinus Boethius

Agree with you, they are not in the business of taxing people in california. Thats what drives lots of business over seas. Tax the company until its cheaper to build or buy overseas and pay shipping and tariffs than produce in this country....greedy basturds in government think they own everyones money....


9 posted on 03/04/2011 3:42:25 PM PST by goat granny
[ Post Reply | Private Reply | To 5 | View Replies]

To: dennisw

I am completely on the side of Amazon here.

How does California collecting taxes from a person buying a book over the Internet make sense?

What did California do to deserve that income?


10 posted on 03/04/2011 3:43:01 PM PST by Radix ("..Democrats are holding a meeting today to decide whether to overturn the results of the election.")
[ Post Reply | Private Reply | To 2 | View Replies]

To: SaveTheChief
In Atlas Shrugged, it was called the Unification Board, and it was responsible for implementing Directive 10-289.
11 posted on 03/04/2011 3:44:18 PM PST by Publius
[ Post Reply | Private Reply | To 7 | View Replies]

To: Anitius Severinus Boethius

Kalifornia needs to do the math, income tax from 10,000 workers or sales tax on purchases. Amazon will not back down. These doofus legislators in the golden state are running out of folks to tax and businesses to run off. Idiots. I suspect that a few more folks will run out on their property taxes too.


12 posted on 03/04/2011 3:44:49 PM PST by JohnD9207 (John McCain is a proud Ted Kennedy conservative!)
[ Post Reply | Private Reply | To 5 | View Replies]

To: SmithL

So I guess that freepers WANT Internet taxes for the greedy states that are illegal to begin with.FR has become like a ship with no course/agenda lately.


13 posted on 03/04/2011 3:44:57 PM PST by taxtruth (Don't end the fed,jail the fed!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: CdMGuy
Maybe if California did not have confiscatory taxes, the residents of CA would not be looking so hard to avoid them. With the lowest sales tax rate in CA being 8.75%, and some counties running 10%, who would not want to avoid the sales tax, especially considering how high the state income tax is. It doesn’t take a great deal of income before one finds oneself in the 11% income tax bracket.

Forget California. Amazon has pulled this anti-taxation stunt elsewhere
Amazon has followed through in Colorado, North Carolina, and Rhode Island and stopped affiliate programs there. 
I don't think Amazon has the gonads to push it that far in California with its huge number of Amazon affiliates

"Amazon is no stranger to battles with states over collection of Internet sales taxes, and has dropped its affiliates in Colorado, North Carolina, and Rhode Island over similar tax bills."


14 posted on 03/04/2011 3:48:17 PM PST by dennisw ( The early bird catches the worm)
[ Post Reply | Private Reply | To 6 | View Replies]

To: dennisw
Support has been growing for legislation, backed by Yee, that would clear the way to collect an estimated $1.145 billion in unpaid taxes that out-of-state online merchants such as Amazon, and catalog houses such L.L. Bean, have thus far successfully evaded.

This is the kicker line. CA is assuming that every commission paid by Amazon to a CA resident is based solely on purchases made by CA residents. CA has no grounds for collecting sales tax on merchandise not shipped to CA that I am aware of.

15 posted on 03/04/2011 3:51:00 PM PST by Gabz (Democrats for Voldemort.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SmithL

I wish more companies had the balls that amazon does. What some of the states have been trying to claim is that amazon’s “associates”, web sites that get a tiny cut for driving traffic to amazon, represent a “physical presence” in that state, and therefore amazon must tax ALL of their sales in that state. This activity is really just a form of advertising, but states are trying to pass laws making this advertising equivalent to “physical presence”.

Too date, several states have tried to pull this. In every case, amazon sent them a letter stating that if they passed a law to that effect, then amazon would simply rid themselves of all associates in that state. In every case amazon has followed through with that strategy, and in very case the state didn’t collect a penny from amazon, but did put several thousands of small businesses out of work.

No doubt California will pull the same stunt, thereby knowingly killing 10,000 small businesses.


16 posted on 03/04/2011 3:53:51 PM PST by catnipman (Cat Nipman: Made from the right stuff!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: dennisw

“I don’t think Amazon has the gonads to push it that far in California”

How hard is this to understand? Confiscatory taxation kills businesses. Cause and effect. CA wants to raise taxes on Amazon. Business retaliates by relocating in a low tax state.

Amazon can make WAY more money by dropping CA altogether than putting up with their nonsense.


17 posted on 03/04/2011 3:56:32 PM PST by BenKenobi (Don't expect to build up the weak by pulling down the strong. - Silent Cal)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Publius
In Atlas Shrugged, it was called the Unification Board, and it was responsible for implementing Directive 10-289.

That's right... "In the name of the general welfare, to protect the people's security, to achieve full equality and total stability..."

18 posted on 03/04/2011 3:57:38 PM PST by SaveTheChief
[ Post Reply | Private Reply | To 11 | View Replies]

To: catnipman

You hit the nail on the head!Great post!


19 posted on 03/04/2011 3:57:41 PM PST by taxtruth (Don't end the fed,jail the fed!)
[ Post Reply | Private Reply | To 16 | View Replies]

To: Radix

Art 1, Sec 9:
No Tax or Duty shall be laid on Articles exported from any State.

Pretty plain statement, I would say.


20 posted on 03/04/2011 3:58:31 PM PST by djf (Dems and liberals: Let's redefine "marriage". We already redefined "natural born citizen".)
[ Post Reply | Private Reply | To 10 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-78 next last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson