California’s “Amazon tax” a colossal bust — UPDATED: repeal referendum?

Posted by: Phineas on July 12, 2011 at 2:31 pm

**Posted by Phineas

I wrote a couple of weeks ago about the shortsighted stupidity shown by Governor Brown and the Democrat-dominated legislature when they passed a bill forcing Amazon to collect sales tax on sales made through California-based affiliates: Golden State, stupid state.

Now more evidence has piled up to show how dumb an idea this was. From Board of Equalization member and former state senator George Runner, here’s a list of the businesses that have ended their affiliate programs in California:

6pm.com
Amazon.com
Audible.com
B&H Photo & Electronics Corp.
Backcountry
Barware.com
Beach Trading Co.
BeautyBar.com
BedBathStore
Benchmark Brands Inc.
CSN Stores
Diapers.com
Drugstore.com
Endless.com
Fabric.com
Gaiam
GiftBaskets.com
Hayneedle
Higher Power Inc.
Lacrosse.com
Muscle and Strength
MyHabit.com
Northern Tool
Overton’s
Overstock.com
PC Connection
Potpourri Group
Quidsi
ShindigZ.com
Shoebuy, Inc.
Shopbop
SmallParts.com
Soap.com
The Tire Rack
Thinkgeek.com
Total Gym
Wine Enthusiast
Woot.com
Zappos.com

Be sure to check out Runner’s post for some choice quotes from now-former affiliates.

Not only will Sacramento not collect any new sales tax money from these companies, but it has lost all the income tax revenue it was already collecting from the affiliates at a time when California is suffering from record debt and deficits. And it will hurt those families and small businesses making a bit of money from their affiliate relationships.

As the great Strother Martin said in Butch Cassidy, “Morons! I’ve got morons on my team!”

UPDATE: Well, this is interesting. A movement has started to place a repeal measure on the ballot If it survives the vetting process, I give it a good chance of passing.

Edit: Speaking of morons, I need to learn to proofread my subject lines for spelling.

(Crossposted at Public Secrets)

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9 Responses to “California’s “Amazon tax” a colossal bust — UPDATED: repeal referendum?”

Comments

  1. foxmuldar says:

    The Libtards wanted to do the same thing to Amazon here in Pennsylvania but Governor Corbett turned them down. Now Amazon says they will add jobs in Pa because of Corbetts decision.

    http://www.fox43.com/news/wpmt-amazon-hiring-allentown,0,1437454.story

  2. baseballguy says:

    You absolutely cannot fix stupid or democrap – they are one and the same.

  3. FREEDOM4USA says:

    I had read about his tax law the day it was passed. I completely Agree with you. It is part of the socialist plan to kill all private sector business and then comes the government overhaul. Have you looked into Herman Cain for president? He is a true conservative, and understands how over regulation kills a business’s potential profitability. please check this link out http://www.politifact.com/trut?h-o-meter/article

  4. Dana says:

    Sorry, Phineas, but you missed it: this was all part of the plan anyway! California wants to decrease sales made through Amazon and similar online vendors, and increase them among the brick-and-mortar stores within the state, where the sales tax is collected. How much income tax do you think the Pyrite State will lose, vis a vis how much additional sales tax they anticipate making? With y’all’s sales tax at over 10% in some places, that’s a lot of potential revenue!

  5. Dana says:

    Foxmuldar: I live in the Keystone State, too, and our state income tax forms have a place where we are supposed to report all non-taxed online purchases, and then remit the unpaid sales tax to Harrisburg. If you have bought anything via Amazon, that means you. Have you complied?

  6. Phineas says:

    California wants to decrease sales made through Amazon and similar online vendors, and increase them among the brick-and-mortar stores within the state, where the sales tax is collected.

    I know Wal-Mart was one of the big boosters of this, but, if they think it will increase sales at physical stores, they’re high. It only punishes affiliates who made a bit of coin through referral links. As a customer of Amazon (or whomever), it makes no difference to me.

  7. Dana says:

    Phineas wrote:

    And it will hurt those families and small businesses making a bit of money from their affiliate relationships.

    Maybe so, but when it comes to a choice of collecting more tax revenue or not hurting those families and small businesses making a bit of money from their affiliate relationships, which one did you expect your state legislators to choose?

  8. Dana says:

    Phineas wrote:

    I know Wal-Mart was one of the big boosters of this, but, if they think it will increase sales at physical stores, they’re high. It only punishes affiliates who made a bit of coin through referral links. As a customer of Amazon (or whomever), it makes no difference to me.

    Actually, it does. Amazon is saying that Hell no, they won’t collect the sales tax, but watch for incremental price increases; they are going to be sued by California for those taxes which your fine state says should have been withheld, and they will need to start socking away money just in case they lose that suit and have to pay the taxes.

    And watch for California and other states to lobby Congress for legislation which allows states to designate the point of sale as the delivery address, and be able to require the sales tax be collected.

  9. nina says:

    Beautiful state dumb communist people.