California screws over entrepreneurs and small businessmen ... Amazon kills California’s Associates Program?
Update ... California Governor Jerry Brown has signed the bill and Amazon responds ...
"Unfortunately, Governor Brown has signed into law the bill that we emailed you about earlier today. As a result of this, contracts with all California residents participating in the Amazon Associates Program are terminated effective today, June 29, 2011."
Original Blog entry ...
I just received an e-mail from Amazon.com and am unsure if it is a threat of future action to generate a groundswell of opposition to proposed California legislation or simply a heads-up of things to come.
The law …
| In National Bellas Hess, Inc. v. Department of Revenue of the State of Illinois and Quill Corp. v. North Dakota, the Court concluded that the Commerce Clause and Due Process Clause of the U.S. Constitution require that there be a nexus between the taxing state and the vendor of goods or services, in the form of a physical presence. This has been interpreted to apply to both catalog sales and out of state sales over the Internet. States are thus prohibited from collecting sales taxes on so-called remote transactions because to do so would unconstitutionally burden interstate commerce. |
It makes sense because companies located in a state receive local and state services which are not provided to out-of-state companies.
However, in their haste to cover their budget deficits; mostly brought about by corrupt politicians attempting to purchase votes by funding social entitlement programs and paying off the special interests in return for campaign contributions, the politicians are desperate to cover their tracks – lest the public begin an in-depth review of their fiscal malfeasance.
Amazon’s e-mail to Associates …
|
Hello, For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by California-based marketing affiliates like you - even if those retailers have no physical presence in the state. We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action. As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before the termination date will be processed and paid in full in accordance with the regular payment schedule. You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program. To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect their ability to purchase from Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. We are also working on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available. Regards, The Amazon Associates Team |
Bottom line …
My blog does not carry advertising, book referrals for profit or request contributions so I am unaffected by the proposed California law and the Amazon pronouncement. At least to the fact that I am not earning money from Amazon.
However, there are any number of bloggers and small businesses in California that profit from the Amazon connection and require the revenue to help defray their expenses – and maybe, just maybe, pocket a little profit.
All I know is that California’s greed and desire to tax anybody and everybody knows no bounds on a progressive socialist regime which is more interested in importing poverty, illiteracy, disease and crime from Mexico and controlling global weather than they are about providing a safe, secure environment for all citizens. They would rather provide billions of dollars to public employee unions than repair or replace our crumbling infrastructure.
It is all about perpetuating the democrat control over California and ruling our inner cities much in the same manner as the corrupt politicians rule Chicago, Detroit and elsewhere.
We need pro-business constitutional conservatives to run our state – not ego-drive celebrities nor socialist democrats. Think about what has befallen our formerly golden state; where our schools, roads and business used to lead the nation. Now all that it left is the progressive democrats, and the fruits, nuts and flakes that make up California’s political granola.
-- steve
“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words
“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw
“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius “A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell “Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar “Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS