Amazon Sales Tax – A Hint of Commonsense at Last

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!!

Comments

  1. says

    “We live in interesting times!!”.

    Yes indeed. Now I know why Amazon closed their associates program for certain states in United State. People used to fight for their freedom from being charge by tax. On the other hand, tax is the instrument used to get the fund to develop a country/state/people. Where is the “win win” situation line is very debatable. It reminds me the point to ponder wrote by Robert T. Kiyosaki in his one of his Rich Dad series book, the concept of taking from the rich and give to the poor can sometime back fire when the taking policy is too much and the spending policy is questionable (decide by political master). Can’t agree more, “We live in interesting times!!”. It happen through out the world (Whatever happen to United State also affecting me in this side of the world, Malaysia).

    Regards,
    Norhisham

    [Reply]

  2. says

    I guess the government isn’t smart enough to realize that all the golden eggs stop the morning after the wonderful goose dinner 8=)

    We see the same thing happening with unions here in Canada. Companies move their operations to places where the labour costs are less. The company needs to make a profit. If they can’t do it here then they’re not going to stick around and dig a big financial hole.

    As much as it is unfortunate for Amazon affiliates to lose a stream of income, I understand Amazon’s stance on this. I hope they are able to set a good precedent for affiliate sales programs as a whole.
    Bill (LoneWolf) Nickerson recently posted..Integrity Marketing – Is This The Internet You Want?My Profile

    [Reply]

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

CommentLuv badge