Internet coupon company FatWallet.com moves from Illinois to Beloit (WI)

Wisconsin State Journal ^ | 4/7/11 | Jane Burns

[coaltrain]

FatWallet.com, an Internet source for online coupons and deals, will move to Beloit from Rockton, Ill., this week. The move was sparked by a new law in Illinois that requires online retailers to collect sales tax.

FatWallet is not an online retailer of products, but is an affiliate of Amazon.com and other online retailers. The new law requires online retailers to collect sales tax in states where they have an affiliate, warehouse, distribution center or other presence.

The company, which has 54 employees, will move to 100 E. Grand Ave.

FatWallet's move was sparked by an Illinois law that takes effect July 1. The law requires out-of-state retailers such as Amazon to collect sales tax on Illinois residents because the retailers have a presence in the state through their affiliates.

[coaltrain]

Guv Pat Quinn and the Illinois Dems tax policies will end up decreasing tax revenues to the state. First, with the Internet tax on companies with "affliates" in the state, those companies are required to collect taxes, so Amazon dumped all Illinois affiliates (like Fatwallet). So those people lose that revenue and the state loses taxes. Or those people move to another state taking those revenues with them. Plus the 67% increase in state income taxes doesn't help to keep businesses, or residents, either.

Oh well, the Dems can make up for it by increasing the tax rate even more.

[Responsibility2nd]

Illinois hates FatWallet.

In more than one way.

[Jack Hammer]

Marxists are brilliant at killing the Golden Goose; the legislators of Illinois should have studied their history a little better. This sort of thing didn’t work in the Soviet Union, in China, in Vietnam, or anywhere else; it simply brought on chaos and poverty.

Those who are ignorant of history are doomed to repeat it.

[HighWheeler]

Well, it looks like ‘rats are still stupid control freaks.

[pogo101]

1. Ha ha, Illinois. What did you THINK was gonna happen?

2. Not sure I agree with a move from a far-left frying pan to a blue-purple fire (Wisconsin, which just elected far lefty Kloppenthing to its supreme court). If you’re gonna move states, why not move to one of the business-friendly ones? Oh well.

3. See #1.

[Dr. Sivana]

Yeah, but all the folks south of Rockton will still have to pony up $2 a day in tolls to GET to work, as their houses are likely underwater, precluding a sale and move.

[ken5050]

Dod the 54 employees VOTE in the WI SC election?

[ken5050]

Did the 54 employees VOTE in the WI SC election?

[ken5050]

Did the 54 employees VOTE in the WI SC election?

[WOBBLY BOB]

look for demonrats to next create a special moving truck tax.

[KarlInOhio]

Do they even have to move? Just put the servers in Wisconsin and maybe a tech to hit them with a stick every now and then and incorporate as a Wisconsin company. All the employees might still be able to log in from home in Illinois just so long as they don't do any sales. Or Illinois might say that creates a business nexus in the state and chase everyone out completely.

[Dr. Sivana]

Ha ha, Illinois. What did you THINK was gonna happen?

Believe it or not, Blago's tax would have been worse. To avoid raising income taxes or cut spending, he decided to push for a 5% gross receipts tax on all businesses.

My employer was trying to survive through several lean, unprofitable years. A gross receipts tax would have closed the company. Ultimately, it was bought and moved to North Carolina.

Not sure I agree with a move from a far-left frying pan to a blue-purple fire [ . . . ] If you’re gonna move states, why not move to one of the business-friendly ones? If you want to keep your employees, and you are sitting by a border, the move makes sense. They can always move again if WI is hostile. An Internet coupon business sounds pretty easy to move. It could even simply be that the owner has family in the area, or that his client base is in the region (not a lot of business friendly states in the Great Lakes region.)

[Cheburashka]

Or Illinois might say that creates a business nexus in the state...

---

That's exactly what the new law says, that Amazon's partners in Illinois cause Amazon itself to have nexus in Illinois. It will probably be declared unconstitutional, but that is years away and far from certain. Amazon cut loose its Illinois partners as a precautionary measure. This former Amazon partner moved across a nearby border and will reapply to Amazon.

[MinuteGal]

Remember when Obama made goo-goo eyes to Illinois company John Deere, even flying to Peoria to get the CEO to support the Won's stimulus bill?

The CEO made goo-goo eyes right back to Obama, genuflected and promised to come out in support of the Won's stimulus bill.....and to show his fealty to the Messiah he promised to also re-hire loads of laid-off Deere workers.

Of course, it never happened that way. There was no money for re-hires even though Obama's bill passed. The gullible CEO is still the Deere caught in the headlights and a sterling example of a dupe and a useful idiot ensconced in the highest echelons of industry.

Fast forward to 'Rat Governor Quinn of Illinois who recently imposed an incredible increase in the already onerous state income tax....plus some dandy corporate tax raises.

The CEO of Caterpillar in East Peoria notified Quinn of his disgust with the tax hikes and hinted at moving his company lock, stock and forklifts out of state after harking to the beckoning siren calls of Wisconsin or Indiana.

Quinn quickly met with the Cat CEO, made goo goo eyes at him....and, making goo goo eyes back, the CEO denied he EVER hinted at moving and the peace pipe was passed back and forth.

The pow-wow ended up with the CEO promising to stay in Illinois.....and....oh, happy day, to join a Quinn guberbatorial committee thrown together designed to keep "commerce healthy" in the Land O' Lincoln.

Another stalwart corporate captain crumbles into dust.

Those "evil, rich Republican corporations" you hear about are actually Democrats when they have to be. They're SO in bed with the 'Rats it isn't even funny.

The accounts of these love-ins between Dems and CEOs make me so angry at all of them that I fully intend to never purchase those Goo Goo Clusters sold at all the Illinois Cracker Barrels ever, ever again.

I do hope Cracker Barrel stays in Illinois, though.

Leni

[dforest]

Illinois is just another loser progressive state. Screw Illinois.

I do feel bad for the folks that do not live in the big city areas.

But, they can vote with their feet.

[MinuteGal]

Bump for the late crowd.....