Amazon has fully committed itself to its effort against
the collection of sales taxes, and it continues to prove this dedication over
and over as it cuts ties with state after state.
cutting ties with states like Texas, where Texas State Comptroller Susan Combs
charged Amazon $269 million in unpaid sales taxes,
and Illinois, where Sen. Dick Durbin (D-Ill.) plans to introduce a bill that
would force Amazon to collect sales tax called the Main Street Fairness Act, Amazon is now
looking to turn its back on California as well after Governor Jerry Brown
signed a bill that would enforce the collection of online sales tax.
"We oppose this bill because it is unconstitutional and counterproductive,"
said Amazon in an e-mail to Californian affiliates. "It is supported by
big-box retailers, most of which are based outside California, that seek to
harm the affiliate advertising programs of their competitors. As a result, we
will terminate contracts with all California residents that are participants in
the Amazon Associates Program as of the date (if any) that the California law
Amazon also noted that these sales taxes "spur job and income
losses." But Amazon has to do what it
feels it should do, and with this bill in place, Amazon won't think twice
about cutting ties with its 10,000 California-based sales affiliates.
Amazon is the largest online retailer with more than 90 million registered
buyers and $34 billion in annual sales. In recent times, it has encountered
increased pressure from certain U.S. states to collect online sales taxes since
the retailer's affiliates operate within those states. In addition, some U.S.
states see an online sales tax on Amazon purchases as a way of digging
themselves out of large state budget deficits.
But Amazon refuses to back down. Last month, Amazon CEO Jeff Bezos said the
U.S. states' demands were unconstitutional, citing
a 1992 Supreme Court decision that excuses Amazon and other remote sellers from
having to collect taxes in U.S. states that do not have the company's employees
or warehouses operating within its borders.
As of right now, Amazon collects taxes in Kansas, Kentucky, New York, North
Dakota and Washington. In other U.S. states where Amazon does not collect sales
taxes, customers are to document and pay tax on out-of-state untaxed sales, but
rarely do because they either don't know about this or just don't care.
Brick-and-mortar stores like Best Buy and Wal-Mart retaliated saying that
Amazon has an unfair advantage due to its lack of sales tax collection in other
quote: if use taxes were unconstitutional as you assert, it's reasonable to assume that ONE legal case would have been proven during the past decades in which every state in the union has had use taxes.
quote: If your assertion was true, somewhere, someplace, sometime, someone would have gotten a use tax declared illegal. Hasn't ever happened, and that disproves your assertion right there.
quote: A use tax puts both interstate and intrastate transactions under the SAME tax burden.
quote: I know exactly what you're trying to do...you're using that very definition to claim that the use tax *is* sales tax.
quote: As noted in responses to those post you made, you were citing an inapplicable section of federal law. Didn't apply. Therefore, you made no argument.
quote: Show me in the Constitution where states were granted the right to pose a tax burden on interstate transactions? It's strictly prohibited!
quote: Wrong again. The Constitution is very clear on this. The Federal Government has sole power to regulate commerce between the states. If Congress enacted the "use taxes", my argument would be nullified and I would completely agree with you. But one fact is clear, states may not arbitrarily impose taxes and other economic barriers to out-of-state trade. Period. End of story.
quote: It's not a tax burden on interstate transactions, because it's not levied on the vendor.
quote: Think about this for a second...if buying out of state all the time well and truly exempted you from having to pay any tax...sales or use...why would you EVER buy anything in-state?
quote: Not even close. The burden, as I've pointed out, is on the resident of the state...which is why it doesn't violate the constitution.
quote: You're wrong. You're not a judge, you're not a legislator, you're not a lawyer, you're nobody.
quote: If he was right about use tax being unconstitutional, he'd be the greatest hero of the American people
quote: If not, STFU and GTFO