Disaster Strikes as California’s Governor Brown Proposes an Online Tax
Within hours of this notification about Governor Brown’s online sales tax proposal, Amazon sent out a notice to all participating California residents informing them of their contract termination. For those of us who deal a lot of work with Amazon, including my daughter whose largest niche site money stream comes from Amazon – is yet another way striving entrepreneurs are getting suppressed by government efforts to ‘restimulate’ the economy.
California is already the hardest hit state with the highest taxes, and highest unemployment in the country – but that isn’t stopping the new government by seeking ways to hit those who are striving to make their own way through this recession.
Once Amazon implements this – more affiliate brokers will follow suit – as the restructuring and changes necessary to implement this would cost into the millions.
Below is the letter I was sent from Amazon.
My reply to Governor Brown – please feel free to copy and send as well.
Anything else you can think of – do it. Because if this starts in California – it is a slippery slope before all the states ultimately adopt this and then it will become an unfair advantage from a global selling perspective.
Be active in this – as it will affect you some day, some how.
Here is a tweet direct to this blog post – Copy and use it
Disaster strikes as California’s Governor Brown proposes an Online Sales Tax
Find out what this means to you http://bit.ly/onlinetaxveto
Repeat the post in Facebook and any Location Home Bank S B other social media you are involved with.
Bestselling author of 31 Days to Millionaire Marketing Miracles
————————— Letter from Amazon
PS – Here is the letter I received from Amazon
Notice of Contract Termination Due to Potential New California Law
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.
The Amazon Associates Team
—————– Letter I am sending Governor Brown
PPS – Here is the letter I am sending to Governor Brown – Please copy and do the same.
You may contact Governor Jerry Brown by mail at:
Governor Jerry Brown
c/o State Capitol, Suite 1173
Sacramento, CA 95814
Phone: (916) 445-2841
Fax: (916) 558-3160
To email this to him go to http://govnews.ca.gov/gov39mail/mail.php
Your recent decision to consider taxing California residents that make online purchases will have a secondary consequence that I want you to be aware of. I am an affiliate marketer that earns revenue from Amazon by guiding users to Amazon through various sites that I operate. It accounts for a good percentage of my income and helps me survive in this economy. Without my technical skills as a web developer, I would have lost my home and struggled to put food on my table for my family.
That said, if you pursue to tax online purchases, I will be dropped from the Amazon affiliate program, and Amazon will cease to operate in California (of which I have already received the letter). Any taxes you intend to obtain from Amazon sales, or any other programs as I assume that more will follow Amazons lead, will essentially provide less income than you probably expect. Not only that, but it will make many online entrepreneurs consider moving, after
all we can work anywhere.
I do not agree with this proposal and I have already been alerted by Amazon that I will be dropped from their program if this law passes.
I do hope you seriously weigh the consequences of this action, as I am not alone in this. We Californian’s are already struggling, and this will only hurt us more. Please avoid this topic. If you need tax money to fill California coffers, perhaps you can streamline government, increase efficiency, reduce the hefty pay, completely stop the pension program for all new hires, and focus on expansion of business, not crush the major implementer of growth and hiring. I chose California because it was a thriving economy when I came, but with a damaging proposal such as this, I may need to move my family and businesses to Las Vegas, where it is also cheaper to live.
I don’t claim to know the entire issue, but I do know what will impact my family and I. Your decision here can produce disastrous results for my family and business. It’s your choice, and trust me when I say, I don’t vote for those that hinder my own prosperity and growth.
Thank you for your time, and please consider this plea with the livelihood of Californian’s in mind.