Amazon Sales Tax – A Hint of Commonsense at Last

By Mark

September 29, 2011 Internet Marketing 2 Comments

Let me get straight to the point and say  “I generally don’t like politics and I don’t trust Politicians” I suspect 99% of the things they do have an ulterior motive. On top of that I make no attempt to pretend I understand the American Political System.

So now that i’ve made that clear it’s good to see that California looks set to repeal the “Amazon Tax Law” that was recently passed and resulted in Amazon dropping all is californian affiliates , believed to be over 10,000 people. Amazon have stated that they will re-instate their affiliates.

I first came across this trend for US states to punish their residents when Colorado instigated their law.  It looked like a stupid law to me then as it does now.   I like to think i am quite logical and have a bit of commonsense anyone with an inkling of either must have seen the utter stupidity of these laws unless they had an ulterior motive.

Here’s my View.

Imagine I live in Denver in Colorado and have a few sites selling Amazon products.  Every month I get a nice payment into my bank of $1000.  I then spend that money in state. Lets assume that the sales tax figure is 10%   thats $100 that goes to the state in sales tax from that $1000. Great.. everyone is happy.

The State then says … Amazon Sales Tax   Amazon kick me out of the affiliate program so I don’t get my $1000 and the state don’t get their $100… everyone loses.

What Am I going to do the next time I get a chance to Vote in an Election? :)

This is a stupid situation made worse by the federal system which means that states have widely varying rates of sales tax.

There is a good article showing the state of play between amazon and the different states on The Street  It’s well worth a read even though the stupidity of some politicians shies through.

We live in interesting times!!

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