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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." 

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RE: Urg
By Nutzo on 5/12/2011 10:40:56 AM , Rating: 2
Proving once again that government doesn't create jobs.

Give tax breaks to a company to build in a specific state does create more jobs, it just changes the location of those jobs, while reducing the overall taxes collected.

RE: Urg
By Solandri on 5/12/2011 1:12:54 PM , Rating: 2
Limited government can create jobs. e.g. Fishing. If commercial fishermen were allowed to catch as many fish as they could, they'd deplete the fishery and put themselves out of work. The government, by managing the fishery so that only a sustainable amount are caught every year, can sustain and even create more jobs. Alaska's government does a damn good job of this and it's one of the most productive fisheries in the world. New England's government failed to do this, and destroyed their centuries-old cod fishing industry.

But these types of situations are not that common (pollution mitigation is probably one of the biggest ones). Generally, excessive government destroys jobs.

RE: Urg
By rcc on 5/12/2011 5:39:42 PM , Rating: 2
Hence the descriptions of Government jobs being overhead. Done properly, just as with company management, it can enable others to remain profitable. But the money used to pay for Government jobs has to come from someone else's pockets.

The only way for a Government to theoretically generate real money is to nationalize businesses, and/or compete with them, and generate a profit (yes!, the evil 6 letter word). And we can see how well that's worked for the countries that have tried that.

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