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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 therealnickdanger on 5/12/2011 2:07:28 PM , Rating: 3
I guess you didn't see this part of my post. I give credit to government's role in providing support for the private sector.
still only the private sector's use of those systems that truly creates jobs that create wealth that make those systems available via tax dollars

The government didn't create Amazon, Google, Facebook, etc. So while the Internet started out as a government-funded project, its success and power to create massive wealth ultimately has very little to do with the government. What the Internet is today is not even recognizable compared to ye olde Internetz of the 20th century. If anything, government today is trying to stifle the growth and power of the Internet because of its ability to share ideas and information beyond their control.

Government spending is just that - SPENDING the money that private citizens EARN in the private sector. Every person working in a government field is paid by TAX dollars or dollars borrowed heavily from other countries, not some fantasy Monopoly money bank account. It's not always a bad thing - we need to spend money to maintain a military and, on occasion, support crackpot ideas like "going to the moon". ;-)

RE: Urg
By maven81 on 5/12/2011 2:51:10 PM , Rating: 1
You are splitting hairs here. Government paying someone in the private sector is still the government creating jobs. When the pols talk about creating jobs, they aren't talking about just government jobs, I'm pretty sure they mean any jobs. The government doesn't just provide support for the private sector, there are many instances where that part of the private sector only exists to serve the government.
You also don't want to admit that even government jobs create jobs because you need secondary jobs to support them... government employees need transportation, they need food, they need housing, etc. If people are working they are creating demand right? This is why studies show that even spending money on unemployment benefits creates some growth, since people throw that money right back into the system.

Yes, the government didn't create facebook and such, but they usually provide the seed that makes such things possible. They have the power to create massive investment without seeking a return. Something most businesses would never do. For example in the beginning the government was buying up something like 40-50% of the early output of the semiconductor industry. This allowed the industry to establish itself, and later thrive on it's own. But someone has to get the ball rolling.

RE: Urg
By therealnickdanger on 5/13/2011 10:21:48 AM , Rating: 2
I don't believe that we're that far off from understanding one another. Every direct government job and the jobs that get money (contractors) from the government are all paid with money collected via taxes. Even the taxes that are paid by government employees still come from tax dollars. Tax dollars come from sales taxes, income taxes, and all other sorts of added fees and taxes in life. I'm not saying it isn't worth it, but we have to be clear in our understanding of exactly where the money comes from. The wealth does not originate with the government.

Without the intense competition and ingenuity of individual citizens and corporations of citizens, most government initiatives/incentives would go no where nor been improved. Even when government seeks to build something like the space program or the Internet, at best it still only serves as a consolidator of private research and the unifyer of funds collected from private citizens.

"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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