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Senate President Pro Tem Darrell Steinberg is even going as far as gaining support for a bill that prevents Amazon from bringing a referendum to unravel the present sales tax law  (Source: uncoverage.net)

Amazon CEO Jeff Bezos
If state leaders can put a hold on the new law until 2014, Amazon will drop its effort to repeal it and would hire 7,000 new employees in California

Amazon has been fighting a tax-related battle for quite some time now. In the past, state's like Texas, Illinois and Colorado have pressured the online retailer to collect taxes in order to make up for state budget shortfalls, but Amazon refused and would simply pack its bags to move on to another state.

California recently joined the list of states who've pressured Amazon to collect. In fact, Governor Jerry Brown signed a bill in June that would require websites that forward shoppers to Amazon to collect sales tax in California. The law, which took effect July 1 and is expected to generate $200 million in revenue, angered Amazon to the point that it asked California voters to repeal the law.

Now, Amazon has a new proposition for the state of California that was discussed in a meeting Tuesday with leaders of the California Retailers Association and those in the office state Senate Republican Bob Dutton in Sacramento: If state leaders can put a hold on the new law until 2014, Amazon will drop its effort to repeal it and would hire 7,000 new employees in California.

While the hiring spree could be an appealing option for the state, since California's unemployment rate was at 12 percent in July and is expected to remain in the double-digits through 2012, Democrats are rejecting Amazon's proposal due to budget-related woes.

Earlier this year, state leaders needed to close a $10 billion shortfall. This gap was closed in June after deep spending cuts in previous budget cycles, but Democrats are backing the new law due to the fact that it has the support of local governments, public employees and small and large businesses.

Brick-and-mortar businesses like Best Buy and Walmart have been complaining about "unfair competition" with Amazon since they have to collect taxes and Amazon doesn't. The California Retailers Association quickly rejected Amazon's proposal.

"Our people came back and said this isn't legitimate," said Bill Dombrowski, president of the California Retailers Association. "It's unacceptable."

As for local governments and public employees, their "ranks are being thinned" due to a weak local revenue and overall state.

Senate President Pro Tem Darrell Steinberg is even going as far as gaining support for a bill that prevents Amazon from bringing a referendum to unravel the present sales tax law. Amazon spokespeople said they believe they'll have enough voter signatures by September 27 to qualify its referendum for next year's ballot.

In addition, Steinberg and other Democrats will create California jobs without the help of Amazon by proposing tax breaks for businesses, creating an economic development office and easing regulation.


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RE: Extortion?
By Samus on 9/2/2011 3:36:57 PM , Rating: 1
What I find amazing is corporations get so fed up with California they actually relocate to substantially more expensive places to operate a business, such as Oregon and Washington. Oregon alone has a 10% (or something ridiculous) state income tax. But, no sales tax, so depending on your industry, that can help you.


RE: Extortion?
By ClownPuncher on 9/2/2011 5:58:18 PM , Rating: 2
No income tax and no corporate tax in WA. Some of the largest and most profitable companies in the world locate themselves here for those reasons, and having one of the more active ports in the country doesn't hurt either.


RE: Extortion?
By YashBudini on 9/2/2011 6:51:44 PM , Rating: 2
So where do revenues come from? New Hampshire has no sales tax, but oppressive real estate taxes, which explains the over population of trailer homes as opposed to permanent homes.


RE: Extortion?
By Solandri on 9/2/2011 6:59:14 PM , Rating: 2
Washington has a high sales tax (nearly as high as California's), and moderately high property taxes. It's also not exactly true that there's no corporate income tax. Washington uses a corporate business and occupation tax. Depending on your industry, you must hand over a certain percentage of your gross revenue to the state (around 1% for most businesses). I suspect they did this in response to Boeing and Microsoft shifting profits to out-of-state and overseas entities so they could claim they made no profit, and hence owed no corporate income tax.


RE: Extortion?
By ClownPuncher on 9/2/2011 7:09:20 PM , Rating: 2
Yep, that is fairly accurate.


RE: Extortion?
By YashBudini on 9/2/2011 7:26:06 PM , Rating: 2
quote:
you must hand over a certain percentage of your gross revenue to the state (around 1% for most businesses)

Talk about simplifying the tax code.


RE: Extortion?
By dark matter on 9/4/11, Rating: 0
RE: Extortion?
By ClownPuncher on 9/2/2011 6:59:58 PM , Rating: 2
Sales tax, business and excise tax, state controlled liquor board etc. We also export a lot of goods.

For such a liberal state, the tax codes are a bit regressive. It obviously isn't perfect, but hopefully a bit more business friendly.


RE: Extortion?
By YashBudini on 9/2/2011 7:28:07 PM , Rating: 2
quote:
For such a liberal state, the tax codes are a bit regressive. It obviously isn't perfect, but hopefully a bit more business friendly.

Compromise all too often is as good as it gets. Extremist views in either direction are usually a much larger fail.


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