Print 83 comment(s) - last by Wolfpup.. on Jun 5 at 4:20 AM

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." 

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: California is full of idiots?
By Solandri on 5/12/2011 1:40:56 PM , Rating: 4
You cut it all equally. Obama loves to talk about how we need to "share the burden". Well, let's do that then. Cut EVERYTHING equally and everyone will be sharing the burden.

I've pretty much concluded this is the only way we're going to get the federal budget under control. Cut everything equally until the budget is balanced. Then if they want to salvage a program, they have to pay for it by cutting money from other programs or raising new taxes.

Right now, the budget process rewards politicians who run deceptive ads. Joe cut money for this program! Vote for me instead! Never mind that Joe cut it because the government was badly in debt.

By automatically cutting everything equally, it eliminates from the equation cuts to the budget to balance overall spending. The debate then is over which programs are more worthy of receiving money, and whether taxes should be raised - exactly where it should be. We have a huge deficit because the current system has weeded out almost all politicians who actually care about balancing the budget, in favor of those who will spend while disregarding the budget so that they will have something to slap onto their reelection campaign commercials.

"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki