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 California’s 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, they’d 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 ...
Barnes and Noble membership has provided a 20% discount since I joined in May 2002. My recent notification for renewal will change that discount to 10% upon my renewal. The annual fee is $25. I have to spend $250 in the store to break even. Sorry. I won't be renewing after 9 years. I simply won't be buying enough to make it a paying proposition.
Texas tried to collect taxes on out of state Amazon purchases going through Texas distribution centers.
Guess who’s town no longer has a distribution warehouse because of that?
Many - on both sides - do not realize there is a natural human limit to taxation. Raise taxes beyond a certain percentage of personal/corporate/regional/state/national GDP and people will, with little thought, change their behavior to drive that percentage back down. Just happens.
Art Laffer, is that you?
This can not be true. The dems tell us that taxation in no way effects behaviour......
democrats are destroying the californicate.
That’s why they aspire to Global Government, so that one day they’ll be nowhere to run to, no place to hide.
Good post! Succinct yet profound.
Beyond that, don't forget the many thousands more small, part-time Amazon affiliates who will no longer be paying state income taxes on their affiliate income which has now vanished.
Great move, Sacramento! </sarcasm>
They just have their checks sent to friend in another state and forwarded to them.
Management agreed to put it to work containing sacks of air mail being dispatched from DC post office to the three main airports in the area ~ roll on ~ roll off ~ and already separated to dispatch in the first handling at DC.
We ran this as an experiment for a month.
We were able to eliminate 24 jobs at the AMFs (air mail facilities) ~ (the employees went elsewhere since volume growth meant we needed an ever increasing amount of manpower).
Then I went in the Army. When I came back the post office had purchased THOUSANDS of these devices.
Over the years USPS ended up with HUNDREDS OF THOUSANDS.
Various people had made various modifications and today's device is about a foot taller than the original, but conceptually they all serve to just move mail ~ in sacks, bags, trays, and so forth of whatever manufacture or shape.
Someday the employees will get wise to what happened and start disabling the APCs and Palletainers and ERMCs ~ just dump 'em over the back dock and spring 'em.
I figure it works backwards. Get rid of a container ~ hire a human!
That's how mechanization all by itself works. That other stuff kicks the labor component upstairs and displaces the bosses.
California’s “Kill The Golden Goose” policy lays an egg.
Did you see the post today or yesterday that charted the start of the
job loss in IL?
The peak of employment immediately flat-lined after that massive
[state] tax increase, then started declining very shortly (I'm
guessing a handful of weeks) afterward.
That describes me.
Auto industry, music industry.........general economy - down.
I call for monthly medications I need and almost all are out of state.
Reps. are very cheerful and talkative and I always ask what part of the country they live and how do they it, etc. Just chit chat while my order is processed
One lady in Illinois just sighs and hopes things get better. They are hopeful but she clearly is depressed about job conditions in Illinois and her family is considering taking up roots and moving out of state. I think she is a native of Illinois, too. They don't want to move but it might come to that whether they want to or not. It angers me that political bullies can have such a wide effect over people's lives. What other states and industries will be next? Best wishes, citizens of Illinois.
Have you tried that? If it's possible to do that, Amazon would then be reporting the affiliate income to the state where the person receiving the check lives. Any tax liabilities involved would need to be arranged between the two parties.
Bottom line -- California loses out on the state income tax that the affiliate would have paid.
People, belay that, governments never learn! I guess that’s because they have so many useful idiots that depend on them. Here’s some advice: GET THE F**K off the plantation!
Nope. Al Smith has his check sent to Al Smith at his brother Phil’s house. Phil forwards the check to Al.
And if I have done it, I wouldn’t state it publicly.
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