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 ...
Which is WHY I detoured my vacation into Montana and saved over $170 on the purchase of my digital camera. I lived there for two years when I was in the USAF and I did like their no sales tax policy. You could drive as fast as you wanted during the daytime too. If caught speeding, the fine was just $5 and it did not go on your insurance.
I have to believe the red state Governors like Kasich are wise to this. Here in Ohio there has been not a whisper of such stupidity.
Picky, picky!
Whether you'd state it publicly or not, my point remains -- California loses out on the tax revenue it could have gotten.
Yes, there certainly are. Regardless of that, California isn't collecting any income tax revenue from their former Amazon affiliates.
Such is the nature of liberalism.
Bump.
That is the most complete and accurate description of the California Legislature I have seen to date.
That is true.
But a distinction without a difference.
If the tax the parasites pay is 1% of what they get in welfare of all types, funded by producers who actually work, pragmatically they do pay no meaningful taxes.
At the same time Warren Buffet intends to stiff most of his relatives. That should not be allowed. As he dies strip him of all his wealth and hand it out to his 500 closest blood relatives.
California’s lotus eating class are well known. What is worse they imagine they are superior to sea slugs.
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