Amazon.com Threatens to Cut Ties With 10k California Affiliates Over Tax Issue

[aGameOfThrones]

Amazon.com Inc., the world’s largest online retailer, has threatened to sever ties with more than 10,000 affiliates in California amid a dispute with the state over proposed taxation of Internet purchases.

Four state proposals aimed at forcing Seattle-based Amazon to collect taxes from residents may be unconstitutional and lead to job losses, Paul Misener, Amazon’s vice president for global public policy, wrote in a letter to the California Board of Equalization.

The letter is the latest salvo in Amazon’s fight with state governments over sales taxes. In February, the company said it would close a Texas distribution site over a similar issue. Amazon received a request from Texas last year for $269 million in uncollected sales tax, with the state contending that since Amazon has a facility in Texas, it should be collecting such taxes for online purchases.

“This is an imminent threat to California jobs,” Board of Equalization Member Senator George Runner, who received the letter, said this week in a statement.

http://www.bloomberg.com/news/2011-03-02/amazon-com-threatens-to-sever-ties-with-california-affiliates.html

[tpreitzel]

I wish Amazon much success in this particular fight. I wonder how many states don't have sales taxes (probably a quick find). Amazon could probably relocate to those states around the country with minimal impact on their business.

[goldenequity]

Kind of like how jobs leave the country -
they'd rather not deal with the regulations and taxes so - bye, bye.

Guess all those stay at home parents
who used this type of income boost
as a way to avoid childcare and travel costs
will just have to go on welfare now.....
Which will cost the state even more.