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Who Wins In Taxing Amazon Affiliates?

June 19, 2011

The California Legislature cannot wait to tax Amazon Affiliates. They approved a bill this week that would tax Amazon Affiliates on their sales in California. The legislature believes that this will generate 370 million dollars for the state budget that is constantly late and underfunded. However in other states where similar laws as this have went through companies like Amazon and have simply severed ties with their affiliates located in those states. So that $370 million will simply not appear on California’s books. Because that money will simply be made by affiliates in other states. So how many affiliates does Amazon have in California? That question hasn’t been answered but some say thousands. It’s not as if California doesn’t get it’s cut of these affiliates money because after they make it from amazon where do you think they spend it? Of course they spend it in California to help the California taxpayers and Legislature. But if they are all closed down they will all be out of business and not earning money from to be taxed and spent in California. Who will be the winner in this battle of taxing the affiliates? I believe that the legislature will eventually tax amazon and they will sever ties with all affiliates in the state much like they have in every other state that’s tried this. So someone has to win in this right, of course they do. Who will win is the last state that doesn’t tax affiliates will have all the affiliates with all the affiliate income that they earn being spent in their state. So do we want to be one of the states that get rid of all of our affiliates or do we want to be the last state that has affiliates?

Now I have to reveal that I have a vested interest in this. I am an affiliate for Now if this happens don’t worry I won’t starve but the state will not be getting the money they are expecting to get now nor will they be getting the taxes off the money that the affiliates earn and spend in the state of California everyday.

  1. Frank Savino permalink

    actually ALL states should collect the tax….these programs (Amazon etc..) where people don’t pay sales tax have been in effect forever. (think of the 80’s and all the camera/computer stores that did this )
    Not collecting sales tax only hurts both the states and local governments, small and local merchants as well as the “big box” stores. the convenience of mail order is the benefit and “not paying tax” should not be a benefit….these same people that want to “shop and not pay tax” are the same FIRST ones to stand up and scream about NOT getting the services that are sure to be cut because they buy away from their area.
    and that’s what it’s about right, your right or privilege to receive services provided by the state and local gov. and how do these services get funded?….duh taxes….or you could be ASSESSED a fee for these municipal services much like you pay for water, sewer, garbage, electricity, so everyone gets to own a piece of the streets, highways, national parks and such so that no one can be sued for disrepair (there won’t be disrepair because ALL of your income will go to your assessment for owning this property jointly with every other American even the ones that can’t and won’t pay and are deadbeats that leave the rest of us holding the bag.

    So before we start crying about this ….maybe we should take a good hard look at the consequences of “Amazon and the rest of the online retailers that don’t pay taxes taking their toys and going home. Rest assured that EVERY other state is watching the outcome of this action and if they see an opportunity to Make some free $do$re$mi like California you can bet this will sweep the country.


    maybe that’s just not a BAD thing….

    • I actually think that the fact that California has such a large number of affiliates more than 10,000 to date led Amazon to come to an agreement on this tax issue. Because let’s face if if you shut off that many affiliates that’s basically how many storefronts you are closing down.

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  1. Amazon Tax Day In California « 38n121s's Blog

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