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Amazon May Be Forced To Cancel Associate/Affiliate Program in California!
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This is a major bummer if you monetize your site with links to Amazon products or have an aStore like us (www.koshermetal.com/shop)!
If a new bill called AB 28X (or the "Amazon Tax Bill")gets signed....it will be very bad for many. We posted a blog on the issue and started a petition.
http://koshermetal.tumblr.com/post/7056468892/amazon-sends-notice-of-cancellation-on-all-california -
According to CA law (as in several other states) you are required to pay "use tax" for items you purchase out of state. Since so many evade the tax, it seems reasonable to make Amazon collect it. The purpose of use tax is to protect in-state businesses from buyers shopping out-of-state to avoid paying sales taxes.
Having endured many State Board of Equalization audits, I know one of the first things they look at is purchases of Capital Assets and other large non-inventory expenditures, hoping to find that you didn't pay either Sales or Use tax.
Amazon sent a notice of termination to me...oh well. Obviously they are hoping I will complain to the state legislature. I won't. It's not fair to CA retailers when they have to collect taxes that other retailers don't.
Amazon will loose. Expect other states to jump on the bandwagon.
Amazon stopped paying for accounts that link from other sites, so eventually they will put themselves out of business. This latest ploy will just hasten the inevitable. When everyone that links to Amazon from 3rd party sites realizes they aren't getting paid, they will die faster. -
Personally, I would like to see more government control, over big corporations in particular. Since big business owns the government, that isn't likely to happen. For about 6 years now, lobbyist for big corporations have been writing their own regulations. It started with something called "The K Street Project". Google it. It started under the Republicans, but lives on under the Democrats. Your government is "For Sale"
In this case, the state is just trying to collect taxes that people owe and are evading. If you don't want to pay the tax, you should be objecting to the tax, not the efforts to collect it.
In my opinion, there should be NO sales tax because it is regressive. I think that all taxes should be progressive (based on income).
It wouldn't surprise me if the Broadcast Radio Lobby wrote the laws on paying royalties. It certainly looks like they did.
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