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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 Drag0nFire on 5/12/2011 1:37:07 PM , Rating: 0
This all depends on how you define economic growth. For example, I could define it in a Mercantile fashion: growth = accumulation of gold bullion. In this sense, the government does not produce economic growth.

Fortunately, our economic theories have advanced since the 17th Century. We realize that public services allow private businesses to create jobs more efficiently and sustainably. I would truly like to see how well your private sector would produce wealth and profit with no roads, no utilities, no police/security, no protection against intellectual property theft etc.

I could also remind you that the 2008 mess that got us in this place occurred because of insufficient regulation (not enough government), and has dramatically decreased wealth, profit, and economic growth.

There are plenty of places where government can be improved. But government does allow for long term economic growth.

RE: Urg
By AEvangel on 5/12/2011 1:59:37 PM , Rating: 3
I could also remind you that the 2008 mess that got us in this place occurred because of insufficient regulation (not enough government), and has dramatically decreased wealth, profit, and economic growth. would be funny if you were not SOO wrong.

Keep, in mind the the wealth of this country has been slowly moved from the larger public to select few more and more each year. The only difference is increased Govt regulations.

As for the reasons for the economic collapse? They are varied, but some of the main were due to the Govt pushing for increased lending to under privileged and large amounts of money created by the BRIC nations that needed an investment opportunity.

Also the belief that some companies are too big to fail thus no risk to them. So they gamble on weird investments that payoff in the short term increasing their wealth and when the collapse happens we subsidize their loss. Since they know the Federal Reserve and the Govt will always be there to back their play.

"Intel is investing heavily (think gazillions of dollars and bazillions of engineering man hours) in resources to create an Intel host controllers spec in order to speed time to market of the USB 3.0 technology." -- Intel blogger Nick Knupffer

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