We’ve received numerous reports of Amazon Associate members in North Carolina receiving emails stating that Amazon is going to have to discontinue the service there due to a pending change the in state’s tax structure. Sometime in the next two weeks, Amazon expects that it will be terminating the service for all North Carolina residents. That will be very bad news for a lot of people who rely on Amazon’s popular affiliate sales program as a source of income.
Here’s the full email:
We regret to inform you that the North Carolina state legislature (the General Assembly) appears ready to enact an unconstitutional tax collection scheme that would leave Amazon.com little choice but to end its relationships with North Carolina-based Associates. You are receiving this e-mail because our records indicate that you are an Amazon Associate and resident of North Carolina.
Please note that this is not an immediate termination notice and you are still a valued participant in the Associates Program. All referral fees earned on qualified traffic will continue to be paid as planned.
But because the new law is drafted to go into effect once enacted – which could happen in the next two weeks – we will have to terminate the participation of all North Carolina residents in the Amazon Associates program on or before that same day. After the termination day, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com nor will we accept new applications for the Associates program from North Carolina residents.
The unfortunate consequences of this legislation on North Carolina residents like you were explained in detail to key senators and representatives in Raleigh, including the leadership of the Senate, House, and both chambers’ finance committees. Other states, including Maryland, Minnesota, and Tennessee, considered nearly identical schemes, but rejected these proposals largely because of the adverse impact on their states’ residents.
The North Carolina General Assembly’s website is http://www.ncleg.net/, and additional information may be obtained from the Performance Marketing Alliance at http://www.performancemarketingalliance.com/.
We thank you for being part of the Amazon Associates program, and we will apprise you of the General Assembly’s action on this matter.
Sincerely,
Amazon.com
So what exactly is this “unconstiutional tax collection scheme”? Here’s what the site news-record has to say:
The tax change is part of a package passed by the House last week in its attempt to rewrite the budget. Lawmakers are struggling to fill what they say is a $4.5 billion gap between the money needed to keep government operating as it is and the revenue the state is due to take in next year.
As part of the effort to bridge that gap, House members broadened the number of items to which state sales tax would apply and have to be collected by retailers. The tax on the category “digital click-throughs” under which the Amazon agreements fall would raise $13.2 million next year, according to estimates by the General Assembly’s fiscal research arm.
With its “scheme” and “unconstitutional” wording, Amazon is clearly not happy about this. It also notes that other states have thought about similar measures but rejected them. But hey, that’s a pretty huge budget gap, makes me worried for what California might do. And what’s with the Carolinas and getting into dustups with web companies?
[thanks Mark]
What does a portrait of signing of the US Constitution have to do with a state squabble
Amazon called the tax unconstitutional, hence the image.
It makes perfect sense.
If enough states passed this law though I doubt Amazon would be willing to essentially abandon its entire affiliate business, but its a necessary move by Amazon. If North Carolina was able to raise $13 million in revenue in taxing something that doesn’t effect most of their citizenry, you can be sure a lot of other states would follow.
The unconstitutional argument comes from states being able to tax “digital click-throughs” falling under inter-state commerce, which only the US Congress has the power to tax and regulate.
http://en.wikip...Commerce_Clause
Basically, it’s the same thing NY did. These states can’t legally charge sales tax on purchase on Amazon because Amazon doesn’t have a physical presence in the state (employees, etc…) thanks to a 1986 Supreme Court ruling involving mail order catalogs (Quill vs ND, if you’re interested). The states are trying to get around this by saying Amazon has a physical presence in the stata because the people in their affiliates programs are quasi-employees. Hence, they can charge sales tax on all Amazon purchases (and all other websites with affiliate sales).
Of course, anyone in the Affiliates program would scoff that they’re quasi-employees because of the lack of work to get into and then post links, but states don’t care because they’re losing a ton of sales tax revenue to online shopping (admit it, most people shop online *because* it’s “tax free”).
If Amazon has a physical presence for sales tax, it’s only a matter of time until states decide they do for income taxes as well (though several states have decided the SC case didn’t deal with income taxes and are basically ignoring it). That’s the issue with Amazon. Washington state has no business income tax but they would have to start to pay in jurisdictions that do.
[ (admit it, most people shop online *because* it’s “tax free”). ]
It depends on the cost of the item, and how much you can save from not paying a sales tax.
One thing though, with all states running at a deficit and the federal gov bailing out everyone (who else would?) I think we’re headed for a national sales tax as the only viable solution, no?
To be clear — it’s not tax-free, nor is dell or any other — the thing is nobody does what they are legally “required” to do, which is directly pay the state for the sales tax on things you buy. amazon and dell, etc. are just not *required* to collect it from you at point of sale, as brick-based retailers are. you mean you *don’t” write the state a check for tax when you order a book? for shame.
I may not be the leading authority on this. but we do need to tax E-commerce. That may damn me for being in E-commerce but when it comes down to it. we are talking about something in the upwards of 208 BILLION dollars being spent online. and they are saying for the year of 2009 it will be growing by 23%
http://tinyurl.com/mxmqx3 <–usatoday article.
You have CA paying with IOUs when I look at my business I’ve got more affiliates in CA then any other state.
I’ve seen what they have proposed, Each state has their own tax. worst idea ever. that means as a merchant i have to learn 52 different tax laws. and some states like NY have state/county/section/burro break down taxes. what the hell? really?
There are some who are lobbying for a unified sales tax. where it would be a set percentage. and some would go to federal and the rest to the state. that way states would benefit equally. And states would fight over where affiliates would be based out of instead of chasing them off to Idaho or Canada.
This needs to be done fast before states individual policies take permanent foot hold and ruin a chance for a unified tax.
http://www.cj.c...ternet_tax.html
although if states do a tax of their own and then we do a unified tax… talk about double dipping… its not going to work well if we let it go like this. You will see a boom of E-business in places that have none of these laws in place or it will all move to Canada…
looks like a double whammy coming for the residents. dried up revenue and tax hikes.
Amazon loves their affiliates…there are sites like http://flipick.com building solutions on top of Amazon’s Advertising API for revenue sharing on products and bringing loads of traffic to Amazon
you’d think that the states would start to cut all of that fat out of their budgets first before they try to stifle economic growth with additional taxes
all states are facing the same issues.
we have similar nonsense proposals. There was a door tax for businesses with delivery doors. Yet I don’t see the state government doing much to cut the waste first, then see what needs exist
I stood in line to get my license renewed. that could have been done online. Or at the minimum, much of it could have been self served via a kiosk. I sat there for over 2 hours to spend about 1 minute with a person who verified my info and checked my eyes. Then I had to wait another 15 minutes to have my photo taken.
Seems that most of that could be automated.
yeah…
it could be automated…
oh wait..
you need someone to design the app
you need someone to ensure the security of the app
you need someone to make sure the process integrates with the state records processes
you need someone to maintain it
you need someone to…..
it’s not a simple, write a 20 line, or even 5000 line web app…
my god.. do you people even think before your hands/mouths open up…
good god man,… i know we can’t see/know who you are.. but lord. have some pride in your logic/thought process…
The person at the counter verifies your documents, checks your eyes and enters info in to the app that is already designed with security, process integration, maintenance etc. taken care of.
You sound like a fun person at parties.
only if you like rap, hip-hop, and strippers in 4″/5″ heels..
but if you’re up to it.. yeah.. my parties have been known to be a little ‘fun’!
peace
Solution: All of the paperwork is handled at the kiosk including taking the photo. (1)A image is printed with some type of bar code which is taken to the counter when you’re identified and the clerk signs off by simply clicking a button and entering their initials. (2) Next step aside, pick up your printed license, and leave. This just does not sound hard because it’s not. Or the other choice to allow those with good driving records to fill out the forms online (or by mail) and simply mail the license to them. (Before anyone complains about how this will not work I live in Illinois where is system is currently in place)
Nice attitude timy1. You must work for the state. I recognize the people skills.
Here is a question… Why do drivers license’s even expire? Answer: So the state can milk you for renewal fees! As long as you are a safe driver you should have a lifetime license.
The cheapest solution would be get rid of the DMV all together.
What a great idea! After all absolutely *no one* ever has vision problems or medical conditions that might impair their ability to drive!
And if they do, we can wait until the first time they run over a crowd of school-age children to do something about it. (Slaps forehead)
Brilliant! Damn you should run for State Assembly!
This is the dumbest idea I have heard in a while. And right now I’m too lazy to even attempt to explain why.
about time someone stands up to these taxes.
If they thought their “unconstitutional” accusation was sustainable they’d be taking it to court. That would be standing up.
Whining that it isn’t fair that Timmy’s Mom changed the rules and threatening to pack up the toys and go home is not “standing up”.
I don’t get this… I live in Canada and we pay a fortune for free healthcare.. yet our govs are still able to handle things without resorting to this stuff.. why are states going broke? where is all the money going.. you don’t have free healthcare.. nor half the social programs we do yet your like super broke? dam we even pay more for gas..
A similar situation is unfolding in Hawaii. A tax change passed by the legislature will become law without a veto by the governor, and if it does, Amazon has specifically told Hawaii lawmakers that it will have to terminate its Hawaii affiliate relationships.
http://www.hawa...liate-marketing
It is unconstitutional. States can not levy taxes on commerce that goes on in other states. That’s the gist of it. Look it up. It’s in the Constitution. Funny how the past couple hundred years of mail order didn’t bother NC, but the internet does.
marc…
the section of law that governs interstate commerce is tricky at best.. at worst.. it’s a mess…
if amazon thinks they have a valid case, they’re more than welcome to file a lawsuit.. it would possibly make it’s way up the the supremes…
the more obvious point though, from a state’s point, is that the states would be playing a kind of mutual nuclear war.. if one state does this to gain additional revenue, what’s to stop the other states from trying, which would then potentially cut back on the amount of items sold, as people really buy online to save taxes/cost…
the total harm would probably far exceed any benefit that the indivdual state would achieve…
sounds like a ph.D thesis…
Or rather I should have put the wording ‘between states’
Why didn’t Amazon dump the New York associates when the same issue came up?
Hawaii also has a bill to do the same thing as North Carolina. It has passed the House & Senate and it is up to the Governor Linda Lingle to veto or sign the bill.
I hope Hawaii doesn’t sacrifice it’s online media for taxes that won’t receive like North Carolina just did.
Hey, if I were these people I would move.
Taxes are so poopy! When income dries up the states need to make sacrifices just like everyone else. Amazon is a hero for selling stuff tax free.
They already collect too much taxes in NC, this is getting weirder.
The foundation I work with in North Carolina is going to get harmed by this. Not cool.
Unfortunately, based on how fast Amazon and most state governments work, I don’t see this getting resolved any time soon.
Might be a great opportunity for other affiliate companies to jump in and grab stranded affiliate users.
Hawaii is about to embark on the same insanity.
Bad enough that we are isolated in the middle of nowhere and most places even refuse to ship items to us… now Hawaii is about to commit digital sales suicide.
http://www.tech...stop-hb1405-the
Regardless of how you feel about this particular case the whole inter-state commerce thing is a total anachronism.
Take California for example – I get charged when I buy something from Walmart.com or buy.com, but not on Amazon.com for the same item.
From the states perspectives, it’s a double whammy, because not only do they lose tax revenue, but they also lose out on dot com etailers locating in their state. I’ve heard of several dot com etailers who chose not to locate in CA, precisely because CA was their biggest market!!!
One caveat of course, is that at least here in CA we’re all supposed to pay the sales tax on stuff we buy on Amazon etc. on our state tax return…
Someday they’ll ‘get it’…
(after all the jobs are outsourced or move offshore)
Keep on increasing the tax burden of businesses, start-ups, and entrepreneurs and they’ll just move someplace else, hire less, and/or lay more people off.
Oh of course because I so want to move my business to Nigeria. Lots of *high-quality* people there.
I hear the Nigerians are the best programmers!
In other news…
there has been a significant increase in the number of affiliate marketers who have chosen to incorporate in Nevada…
… only to discover that they still have to pay the tax that Amazon did not collect.
State of incorporation just allows some flexibility on internal corporate governance. Does not affect tax ( exception is if you move Corporate HQ to Bermuda ). But taxing authorities can pierce corporate veil if they decide that the principal purpose of the corporation is tax avoidance.
Don’t believe me? Knock yourself out trying it yourself. Give me a jingle when the FTB, IRS comes a-knocking, my wife charges reasonable rates. Her fees should only cost $2000 unless you got really creative. Filing a fraudulent tax return however can run 25%+interest. Be my guest, this is one way to pay off the national debt.
Rhode Island just passed a similar “Amazon Affiliate Tax” out of its House Finance Committee today as part of the state budget. The final vote in the House is next Wednesday and if it passes (and it’s likely to stay in there) Rhode Island will be out also, just like North Carolina, I imagine.
http://newsblog...bly-budget.html
Poll: What’s more important — Amazon or North Carolina?
North Carolina.
Amazon. Easily.
So you value a single business over one of the original 13 colonies and home of almost 10 million people.
Interesting choices. Since Microsoft is a more “valuable” company does this mean Microsoft is more valuable that California or the entire United States?
Color me … curious….
Anyone know how much Amazon spends lobbying against state internet taxes?
I hope it’s a lot.
Lobbying is just a fancy word for buying off public officials with dirty money.
“Lobbying is just a fancy word for buying off public officials with dirty money.”
+1
Oh really? I have done plenty of “lobbying” as part of my grassroots work.
This is just a lazy answer. If you call up your elected officials, you are “lobbying”
Amazon’s definition of “unconstitutional” :
“We don’t like it”
I love all these people who whine about taxes.
You don’t like taxes? move to Ethopia. No functioning government since Bush the First a libertarian paradise.
You complain about taxes but want the benefits of:
* a functioning University system so that there are high-quality people to work at your cool start-up
* a public school system that at the very least keeps kids off the street. (50% of california’s budget)
* roads
* police
* prisons ( 10% of California’s budget )
* state parks
* a functioning emergency system for the next airline crash or the next earthquake.
* airports
* Caltrain
* weights and measures people to make sure that when you buy a gallon of gas you get your full gallon
* code enforcement to make sure a restaurant is not serving 3 month-old rotten meat and the kitchen is not infested with cockroaches
* zoning enforcement that stops your neighbor from running a chicken farm.
* labor laws that stop child labor and insist that your employer actually has to *pay* you.
* SEC laws that require that companies follow GAAP
* laws that allow lawsuits and action against companies when they pollute the water you drink
Next time you think that the government does nothing for you. Spend some time finding out how badly mainland China, Dubai, or Yemen allows the powerful to abuse everyone else.
I can go on and on.
But seriously, grow up. You want to live in a civilized society? expect to pay for it — it does not come for free.
Oh sure, it isn’t perfect — fine make it better.
As for me, I am happy to pay taxes and enjoy the best state (California) in the US. There is no way I would move to another state that has worse laws.
It’s not taxes. There just comes a point where when is enough enough? Will there come a day when they just take all our money?
Is that happening right now?
If not, lets save that conversation until “they just take all our money”?
In the meantime, think about this:
1) In the 70’s corporations paid 2/3 of the taxes, today after a full generation of the rich whining about taxes corporations pay 1/3 of the taxes.
2) 30 years after Prop 13, the biggest beneficiaries of Prop 13 are corporations because they never, never sell property ( 99-year leases anyone? ).
All this anti-tax rhetoric has allowed corporations to shift the tax purden to the individuals.
Maybe it is time to wake-up about this scam and stop buying into the anti-tax rhetoric so blindly.
Businesses do you pay taxes. You, the consumer, do in higher prices.
Really?
Seems like this concept falls apart as soon as a more efficient competitor decides that they do not need to raise prices in the wake of a tax increase.
So one business decides that they are going to do “pass on the tax in the form of higher taxes” and another business decides not to.
What does your economic theories say then?
A few other “unnecessary services” from the government:
* Center for Disease Control ( you know those useless people that actually worry about swine flu pandemics )
* FCC (Federal Communications Commission) / FTC (Federal Trade Commission ): you would know these people as the useless bureaucrats that would actually enforce something useless called “net neutrality”. Come on you can trust Time Warner and Comcast!
* CDF (California Department of Forestry ) : those useless bureaucrats that put their lives on the line to put out wildfires. I am sure those fires last year in San Diego would have eventually burned out.
* Nevada Gaming Commission– makes sure those roulette wheels are not rigged — completely useless!
* California Secretary of State — silly bureaucrats that stop Diebold from rigging elections. Completely unnecessary because we all know electronic voting machines have no flaws! Look at Iran – they don’t have anyone worrying about rigged elections and everything is just peachy there!
Move to Ethiopia. Avoid these annoying bureaucrats!
“I am happy to pay taxes and enjoy the best state (California) in the US.”
Ha ha oh wow, thanks for the good long laugh. How’s that myopia working out for ya?
pretty well. thanks for asking
This is interesting, but the easy fix as another comment already says is for the associate to incorporate out of Nevada, or some other state…. They then could still reside in NC or Hawaii, while Amazons records show their associates company is in nevada…
You really should check out tax law sometime. If Amazon doesn’t collect the tax, the affiliate still will have to pay it. ( wife is a CPA )
Guys! I have an absolutely brilliant idea for you.
How about those of us who want better services and service from bureaucrats, show our appreciation by raising “cash donations” in plain white envelopes with unmarked bills.
The rest of you who don’t like taxes don’t have to contribute! That way the government officials know who should get the best service from them.
After all this is the proper way to run a business!
For me I will be slipping a Mr. Franklin to that kindly policeman to make sure that he pulls you over frequently on suspicion of drunk driving.
Chr*st another freaking waste of my tax dollars:
Jury trials. Everyone knows that if the RIAA says someone committed a crime it must be true! Just think: 12 people plus alternates stuck listening to a bunch of lawyers. Don’t they have anything better to do? And the light, A/C, and heat for the courthouse.
Waste, waste, waste!
move to other
Does anyone know if Amazon tried to strongarm NY, the same way they are trying with NC, HI and RI?
At last check NY has not actually come close to passing a bill that would do what this one in NC is going to do.
We do have to ‘claim’ the dollar figure we spend online on our Income Tax forms (that’s been that way for 3 years now). However the only other change was that idiot Patterson proposing a NY tax internet downloads like iTunes, nothing ever came up related to affiliate program revenues. The internet downloads tax like most of the other hair-brained ideas Patterson had were shot down by our State Assembly before it self destructed last week.
So, Amazon is willing to throw its Associates into the sacrificial volcano to preserve to keep open its access to a tax loophole….
Folks,
I also got burned by this. I was making a nice paycheck from from Amazon and I ALWAYS reported and paid my income taxes. What I believe will happen is that affiliates and consumers will see that they are being charged this sales tax and probably try to choose another retailer. I am not happy about NC trying to collect the tax. I think that this is a huge hassle for everyone. But, if states see this as absolutely necessary they will do it because they do not see any other option. I say choose another affiliate marketing program where Amazon isn’t going to short their affiliates. Let’s think about this. You partnered with Amazon and are giving Amazon the benefit of the doubt to drop ship products your web site viewers are interested in. But, Amazon is not the only game in town, there are thousands of affilate programs out there. I say fine, I’m going to another affiliate like Ebay for my products. It really is that easy and Amazon is going to wind up creating a bunch of competitors in these states where they used to be partners. Go figure! They just killed one of the smartest marketing ideas in history. Hope Apple doesn’t pull out on the deal NC wants to give because they passed a new tax collection law. Oh, wait, they want to give Apple millions in tax breaks but not Amazon. Oops! http://www.busi...s/D992BUS80.htm
Props to NC. I’m more concerned with fiscal stability of my state govt. than I am Amazon.com or it’s affiliates.
06/18/2009 07:27 Amazon.com doesn’t like NC sales tax proposal
Amazon.com doesn’t like NC sales tax proposal
THE ASSOCIATED PRESS
RALEIGH, N.C. — Amazon.com has threatened to cut off sales commissions in North Carolina for referrals to the online retailer if a new tax proposal becomes law.
Multiple media outlets reported Thursday the Legislature is considering a way to collect sales taxes for so-called “click-through” transactions.
Web site operators posting links to the company about its products receive up to a 15 percent cut on sales. Lawmakers wants to use the arrangements to collect sales tax on the purchases.
Amazon wrote a letter saying commissions would end if the provision became law. Patty Smith with Seattle-based Amazon said North Carolina would be violating the U.S. constitution.
State Sen. David Hoyle said the state should collect sales tax on Internet sales just like it would for a brick-and-mortar store transaction.
On the general question of sales taxes and online commerce: online sites could probably swallow state-level taxes, as there are after all only 50 states, though it would be a burden on tiny boutique retailers. Probably the states would have to agree to come to some level of conformity on what purchases are taxed.
But complying with municipal sales taxes? Waaaay too many jurisdictions and rules for any functional nationwide system.
@Pat – You get bonus points for the sheer volume of sarcasm you’re whipping around there, but your virtually acidic rhetoric simply does your position no favors. State governments assess “emergency” tax measures to get quick money because they can’t bear the thought of making the tough choices necessary to cut spending. If everybody had an option to forcibly secure more money when times got tight then nobody would willingly scale back their luxury spending, and I defy you to justify every line item on the budget as necessary to the survival of the state or the immediate welfare of its citizens.
The general argument is that the states should be more responsible in their spending when times become difficult and not try to magic up “just that little bit extra” at the expense of some niche constituency.
As for the article.. I don’t see how Amazon justifies the label “unconstitutional” unless N.C. has something on its books that limits the state’s ability to levy such a tax. I do imagine they are a bit panicked over the prospect of having to pay an uncontrollable (by quantity) amount of tax for what amounts to a marketing scheme – potentially in every state in the union if this catches on.
Jake, it’s the US Constitution that prohibits states levying taxes on the products of other states. I don’t remember where it is, but I believe it’s within the original founding articles.
I think you are thinking of Article I Section 10: “Powers prohibited to the States”
“No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports”
Article I Section 8: “Powers of Congress”:
“to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;” (Interstate Commerce Clause)
However, these clauses do not prohibit a state from taxing products of other states; the clauses prohibit a state imposing tariffs on goods entering and transiting a state; and prohibit preferential taxing to favor one state’s goods over another. So California cannot establish its own customs. Nor can california apply a tax on apples from Michigan but not on apples from Washington.
However, California can establish a Agricultural inspection station.
As an additional FYI, this is the reason a state cannot use eminent domain against a railroad. A railroad is regulated by Congress under the interstate commerce clause.
@Jake –
“State governments assess “emergency” tax measures to get quick money because they can’t bear the thought of making the tough choices necessary to cut spending”
Hmmm… so in hard economic times, when a social safety net is that much more important you want states to cut funding.
So from your perspective:
* Unemployment insurance
* Job retraining programs
* Community Colleges
* 4-year public universities
* subsidized day care
* subsidized elder care
* Section 8 housing assistance
* School lunch programs
* morning/afternoon pre-/post- school day programs
* community grants for starting a new business
Should all be cut.
Someone who has just been laid off can try to job hunt and compete with 500 applicants hoping they can keep their head above water economically;
Or
they can return to school and complete their AA degree or the BS, or get their MBA using the above listed services to make it economically possible.
By providing these services, a state enables their citizens to be more valuable and more productive when the economy turns around.
The single mom ( or dad ) may start the downturn with no college education. Through the services listed above, this single parent could end up with a degree that will enable them to double their income. Or give them the skills to start their own business.
Yet you make the interesting choice that states should remove this opportunity to turn economic lemons into lemonade.
Interesting. I am curious why you think that a less-educated workforce is a good choice?
I should add that Herbert Hoover was wildly successful at cutting government spending in the Great Depression. I am curious do you think this was successful for him? If not how is the same approach going to be successful today?
How about people learn to save money, build a safety net of their own and live within their means?
* Why should I subsidize day care?
* Why should I subsidize pre/post-school day programs?
* Why should I subsidize business grants? There already is the Small Business Administration
*Unemployment insurance in WA they take out of your paycheck, employers probably contribute too. In FL I believe it’s the same or employers contribute to the fund
My real estate taxes already go to fire, police, county hospital, schools. Add in sales tax (nearly 10% in WA) gas tax, 20% cell phone tax, 13%+ communications tax, water, trash… How much more?
There are charities out there that do a great job and have social programs, job retraining, counseling and what not.
So you have your own safety net do you?
* You have disability insurance? ( You are 4x more likely to be disabled than die before age 65 )
* You have earthquake insurance?
* You have high quality medical insurance with no life-time cap?
Congratulations if you do. 1/4 of the US population does not.
You of course made sure since the moment you were born to make sure you had all this insurance, because you took complete responsibility for yourself.
Now lets talk about those kids who have nothing better to do because you have shutdown opportunities for them:
* a little breaking and entering action to supplement the income.
* no need to worry about police because you do not want to pay for them.
* no need to worry about prison because that is a waste.
* eventually they do get out of prison if you want to pay for that ( and they repeat the same cycle)
And of course with your attitude I suspect that you think that you will still be able to get high-quality workers for your business? I am curious where they will come from since you are not willing to pay for their education? Or maybe you run a McDonalds and you prefer dumb workers?
Re: WA — last I checked no income tax, so you are whining why?
Re: Charities — no they don’t begin to cover the needs. And I be willing to bet you don’t give either.
NC is joining our country in it’s slide into socialism and that’s all there is too it. All the government cares about is sucking more money out of it’s constituents. We have a “Educational Lottery” that has supposedly raised billions for Education – so the state sees fit to cut 5 days off the school year next year, fire teachers and teacher aides, not pay teachers for a period of time, cut textbook money, increase class size, and allow the “Education Lottery” money to be used for whatever they freaking feel like using it for (other than for education). Of course pretty much any teacher here will tell you their school hasn’t seen a dime of the money anyway. Our teachers are getting the shaft.
These “NC Politicians” don’t give a cracker about NC citizens since most of them are probably not North Carolina natives anyway.
NC is fascist. NC is communist. Come on get your tax hate language right!
You want no taxes? Go to Ethiopia, the libertarian dream state. All you need is to be a really good shot.
California has added the same “Amazon Tax” language into its budget bill. Today, Amazon responded by announcing that if California enacts this provision, Amazon will also terminate its relationships with California web publishers — which means California will lose income tax revenue but Amazon still won’t collect the sales tax.
Good. Some other business will figure out how to crack this market open then. If Amazon is willing to destroy their successful affiliate model — we should let them.
NC accounts have now been officially suspended.
Just the letter from Amazon.
We are writing from the Amazon Associates Program to notify you that your Associates account has been closed as of June 26, 2009. This is a direct result of the unconstitutional tax collection scheme expected to be passed any day now by the North Carolina state legislature (the General Assembly) and signed by the governor.
Wow but closing the accounts of a whole state is constitutional?? What’s next? Your account has been closed because your Chinese?
I think the argument should be the that this tax creates an unfair playing field for NC businesses. The nexus definition in the law basically extends the state’s boundaries do that if someone from outside NC was to click on a NC affiliate’s link than Amazon has to collect sales tax from the buyer. Example: Customer in VA will pay 6.75% sales tax to NC for being referred to Amazon from an affiliate in NC when they would have paid no sales tax if they clicked through form a SC affiliate.
Now that Amazon has decided to not do business through affiliates in NC (which no law says they have too) NC loses the income tax revenue that these affiliates were paying on their earnings. Also, the affiliates, which are small businesses, now may have to close their businesses creating further burden on NC and the entitlements tax payers pay for.
Like the music royalty tax XM/Sirius customer have to pay and the Federal Excise tax we pay on our phone and electric bills, this tax needs to be regulated at the federal level. It may even need to be a constitutional amendment. That would require a 2/3 vote to be ratified.
To sum it up: not against the tax, against the unfairness of the tax with respect to affiliates.