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: Jobs are created because there is DEMAND for some good.
quote: That demand comes from the consumer spending money.
quote: The consumers obtain money from a Job.
quote: As such, any job creates economic growth. In theory, the more total wages/salaries/benefits paid out to workers, the higher economic growth [as the result of increased consumer spending]
quote: Hence the fallacy of "Unions cost too much" or "government doesn't create jobs", as they create far more long term growth then someone making just over the minimum wage.
quote: Correct...and as the Govt. produces no physical goods they are not a productive part of the economic system.
quote: Govt jobs do not create economic Growth...thus removing $150k worth of income from the private sector.
quote: Only the private sector or consumers can create jobs.