Hooray For Amazon!

Investors.com
7/1/2011

States: California Gov. Jerry Brown thought he’d found a honey pot of revenues by taxing Amazon’s Internet sales. He obviously didn’t realize whom he was picking a fight with.

As Brown was signing the law, which aims to tax out-of-state Internet sales, online retailing giant Amazon was sending letters to thousands of California website owners terminating its affiliate marketing program so as to avoid paying that tax.

As a result, the law that Brown thinks will raise $200 million a year and that local retailers claim will bring fairness to the retailing world will do neither.

The Amazons of the world can simply drop their affiliate programs to avoid having to collect state sales taxes, leaving consumers free to buy without paying them.

The only people hurt by this ham-fisted money grab are the affiliates — mainly small businesses that help Amazon and other Web retailers sell their products for a small commission. The Orange County Register reports these affiliates’ revenues could fall by as much as 30%…

The article continues at IBD Editorials.

H/T ExposeTheNetworks.com

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