backtop


Print 83 comment(s) - last by Wolfpup.. on Jun 5 at 4:20 AM

Amazon vows to continue dropping "states who pass those affiliate laws"

Taxes have become a major issue for Amazon in many U.S. states, but the online retail giant isn't afraid to turn its back on those pressuring it to collect. 

A few years back, Amazon filed a lawsuit against the state of New York because NY tried to collect taxes from out-of-state transactions through Amazon. More recently, Texas State Comptroller Susan Combs charged Amazon $269 million in unpaid sales taxes on online sales. This led to Amazon's decision to close a distribution center and cancel further plans to expand operations in the state.  

While certain states are going after Amazon mainly due to the fact that the retailer's affiliates operate within these states, and because they need a way to offset huge budget deficits, they're not the only ones who have a bone to pick with Amazon. Brick-and-mortar competitors like Best Buy and Sears also want to see the retail giant collect taxes because they see Amazon as having an unfair advantage. 

Amazon is cutting loose from more U.S. states that continuously pressure the retailer to collect taxes. For instance, Illinois just passed a new law that requires online retailers to collect taxes if they have affiliates in the state. Amazon's answer to that is to cancel affiliate programs in the state of Illinois. 

In addition, both Texas and California are considering bills that would tax online sales. Amazon made it clear that it will simply continue to drop affiliates in U.S. states if the states continue down this path. 

"We will continue to drop states who pass those affiliate laws, from the affiliate program," said Chief Executive Jeff Bezos. "In the U.S., the constitution prohibits states from interfering in interstate commerce. The sales tax collection is very complicated. The right place to fix this is with federal legislation." 



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Urg
By borismkv on 5/12/2011 10:39:27 AM , Rating: 2
Government policies can be enacted that either attract businesses or push them away. State governments can have a lot of say in whether large companies choose to base themselves in the state or not. Having laws that make it harder for a business to make a profit tend to force businesses away from that state, and thus people lose their jobs or the potential jobs are taken to other locations. Laws that make it easier to make a profit attract businesses and in turn increase the number of jobs available. One of the biggest reasons that the US has such a high unemployment rate right now is the Federal Business Tax code is a heaping pile of horse manure. It's more profitable to base a company in Canada or Europe and conduct business in the US than it is to actually base the company in the states. After all, we can't audit and heavily tax companies that are not based in our own country and choose to shift their profits made in the US overseas to escape the world's second highest corporate tax.


"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki