These Californians place links on their websites to Amazon. When someone clicks through to Amazon and makes a purchase, the Associate earns a commission.
Amazon is not required to collect sales taxes on purchases made to Californians because there is no "business nexus." But now California is considering a law to classify Amazon Associates as a "business nexus".
History shows Amazon is not bluffing. If California declares Amazon Associates a “business nexus,” Amazon will end its Associates program in the state.
This will hurt over 10,000 Californians' earnings -- and will lower California's income tax revenue.
This loss in state revenue will not be made up in sales taxes, because by ending the Associates program, Amazon will once more not be required to collect sales taxes.
"Bricks and mortar" retailers complain that Amazon has an "unfair advantage" because online buyers don't pay sales taxes. But they ignore that: 1. their buyers don't pay for shipping, and 2. this legislation will NOT compel Amazon to collect sales taxes -- it will only hurt 10,000 Californians trying to earn money and thus further hurt the state's revenue.
Californians, please contact your state senate and assembly representatives and tell them to oppose any attempt to force Amazon to collect sales taxes, or to declare Amazon's Associates a "business nexus."
I think it is a stretch to say that 10,000 affiliates livelihood will be affected. The reality is that an affiliate is lucky to earn 10 dollars a month if they only get a small percent of the sales that are generated from Amazon. I would like to know how many affiliate really do produce thousands in sales and therefore hundreds back.
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