California and the new Amazon Tax Law

California and the new “Amazon Tax Law”

Who do you think will see the greatest impact, affiliate or the state when it comes to passing the California online sales tax law?

In my opinion, I believe that it will be the state of California or any time that imposes the tax. Why? If affiliates are making their income online, they cannot afford to stand by and continue to see a major drop of revenue of 50% or more due to the new Amazon law. And it is happening to some. Why? Many of the online retailers, not just Amazon, are opting to drop their affiliate programs in the state, or any state that has the “Amazon Tax Law”, to avoid the tax. Simple solution for the online retailer? But a crushing blow to the affiliate.

That leaves the affiliate deciding whether to regroup with different products or moving from the state to recover their lost revenue. Well, for those that have the means to move, that is what many are choosing or contemplating. I can’t blame them. Granted, the small affiliate without the means will be hurt because they will be forced to re-establish themselves with new products to make up the drop of income.

The end result, in my opinion, is lost revenue for the state that imposes the tax, and more revenue for states that have not imposed the tax, when “big money” affiliates or small online businesses leave the “Amazon Tax” state for states with friendlier taxes for those working online. Gee, what was the state thinking?

This article is from myaffiliateplace.blogspot.com