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.
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.
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.
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.
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.
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
quote: Keep in mind money is a creation of government, and its purpose is to make economic activity (versus barter/trade) more efficient and easily measureable. They also make economic activity possible by collecting taxes, raising a military, and protecting the people and resources of not just the consumers, but of the suppliers in the economic equation.