Amazon Offers Calif. 7K Jobs to Put Sales Tax Law on Hold; Dems, Retailers Refuse
September 2, 2011 9:48 AM
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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
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
, 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.
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.
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: So cut spending
9/2/2011 7:23:31 PM
As much as I love Cali, after recently returning from spending 6 years in the Navy on the East Coast it almost brings me to tears how much this state is going downhill. Other states overspend too, but I hope people can realize that THAT IS NO EXCUSE, nor does it justify what they are doing. It's the same with the federal government, if we don't have the money, quit spending it. I do care about California's irresponsible spending because I live here and I would like to stay, but it makes me sick to pay taxes to pay for this nonsense. I had to pay $4,000 (use tax) to register my car here that I bought 6 months before in CT while stationed there, and they accused me of trying to get out of paying taxes when I contested it. I wasn't even trying to be unreasonable, I only asked that they charge me based on the current value of the car since I bought it new off the lot, 6 months had passed, and it was involved in an accident. Here's a link to the enacted budget for 2011-2012 which also shows where the money is spent. I recommend reading it before mindlessly supporting/defending our pathetic excuse for a government.
RE: So cut spending
9/2/2011 11:35:49 PM
A good start would be to get rid of these idiots. Take some criminal justice courses and discover the 9th District has always been a laughing stock. Wasteful because so many of their decisions need to be overturned.
In private business such incompetence wouldn't even be able to collect unemployment (fired for cause), let alone making critical decisions.
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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