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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 yomamafor1 on 5/12/2011 12:56:19 PM , Rating: 2
Except when the private sector is rapidly reducing in size to accommodate the reduction in consumer spending, spending by government becomes important in the short run.

It is fair to say that government spending is important in the short run, but not an ideal source of job creation in the long term.

RE: Urg
By tastyratz on 5/12/2011 6:06:08 PM , Rating: 2
Government jobs are to provide a service to the people with which the taxpayers foot the bill. Creating more government jobs to do un-necessary tasks instead creates additional tax burden on the people who are not employed to pay it.

Since there are less tax payers the tax bill per head goes up and demand goes down. Instead of resizing per demand the government simply passes on lost taxes to those whom still pay any. The unemployed can not afford to drive on public roads and stimulate other economy.

I think what you are confusing is the lesser burden of a government job than a private sector job in the money trail. The salary is paid out of taxes, but also taxed offsetting a large chunk of that salary. The person then in turn purchases goods and services which are also taxed, and those goods and services continue along to others which keep those who create the goods and services employed and paying taxes.
Net gain however is still negative, because you are not creating more tax income than you are paying for said person, you are only temporarily slowing economic decline by buffering through our tax deficit.

RE: Urg
By michael67 on 5/13/2011 4:43:21 AM , Rating: 1
Since there are less tax payers the tax bill per head goes up

You are right on that, but what most don't get is, it also means if Amazon dose not pay its tax, the Electronics, book or what ever shop that sells the same stuff as them has to pay more tax.

Is it fair that a struggling shop that provides local jobs get to pay more tax, ware a big multinational like Amazon dose not have to pay any ???

It dose not mater if you hate government or not, you still need some government, and they run on tax.

I think Amazon should pay its share, everyone else has to pay why not them????

and yeah we all love sheep stuff, but if we save tax on it here, we pay somewhere else more, because the same amount of tax is needed anyway.
I think its just unfair that struggling John Average that runs his own local shop gets taxed, and ware a big multinational like Amazon dose not have to pay tax, because there business model uses the internet.

RE: Urg
By tastyratz on 5/13/2011 7:30:30 AM , Rating: 2
Well you are partially right. Sales tax is only at the state level, and Amazon like any other retailer online or b&m pays tax on in state local sales but not out of state sales. This applies to best buy who has an online website as well as the mom and pop store. Running a local business that does not ship out of state is a choice and relying on only that these days is a failing business model. The market has changed and mom & pop need to adapt to survive in the global economy. While the state needs to collect tax, these goods are not intended for consumption within their state.

What is not fair is the explicity targeting of the amazon cash cow. If amazon is a target so shouldn't the little guy in this instance.

Now if destination states proposed a tax for incoming goods then it would be different. While most have a tax law requiring you to declare it is barely enforced. Some sort of national database system requiring retailers to register purchases, costs, and destination would be a fair way to implement. While I am not saying lets go tax things, if they WERE to do it that would be what I think is the most fair way.

RE: Urg
By AssBall on 5/12/2011 8:32:45 PM , Rating: 2
Except when the private sector is rapidly reducing in size to accommodate the reduction in consumer spending

In a nut shell, that kind of sounds exactly like increasing efficiency to me.

"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il

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