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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 Ammohunt on 5/12/2011 2:52:36 PM , Rating: 1
How many poor people have you worked for?


RE: Urg
By kitonne on 5/12/2011 7:13:29 PM , Rating: 2
I've worked for a lot of poor people... Do not confuse the business with the personal wealth. The business is usually owned by a bank or shareholders (whoever came up with the investment money) while you work for a human being, who is also an employee most of the time.

The beauty of the system here in US is that you do not need to be rich to start a business and hire people - if you have a good idea, you can loan money to finance your startup, and have a chance of working on your dream with no money down.

The corrolary is that most guys who start their own business and hire others, are heavy in debt and their personal wealth is smaller then what they own. Some manage to "make it" and after many years of hard work they pay off the debt and become rich, but at that point in time in their careers, they are no longer actively hiring new people or creating new jobs - they are retired :-)

History shows that many rich people who inherit their wealth do not create any new jobs - they live off interest / dividends /business income/ and just spend the money accumulated by their forefathers, and once the money is gone, you never hear their names ever again.

Of course, there are exceptions either way, but in general, there is no link between personal wealth and job creation.


RE: Urg
By myhipsi on 5/13/2011 8:20:59 AM , Rating: 2
quote:
History shows that many rich people who inherit their wealth do not create any new jobs - they live off interest / dividends /business income/ and just spend the money accumulated by their forefathers, and once the money is gone, you never hear their names ever again.


Anybody that makes money off their investments by way of interest and/or dividends, is providing capital for economic growth. In addition to that, when they spend that money, they create demand which also helps the economy. How they got their money (short of stealing it) is inconsequential.


"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation














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