papajohn56

Amazon.com cuts off Rhode Island affiliates over sales tax issue - Puget Sound Business Journal (Seattle):

More affiliate taxes, ugh. Glad I'm not there, but the state right next to me, NC, did one recently too.

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JustLloyd

I have an idea that Amazon & everyone else will have to come up with a better trick than turning tail & running.
Sooner or later all 47 states(Alaska & Texas want to return to their former sovereigns & as far as everyone's convinced Hawaii is a foreign country already) will find a reason & method to drop the tax hammer; everyone is scrambling for revenue and it's going to have to come from somewhere because, even if we close all the schools, hospitals, libraries & let the bridges collapse, someone has to fund those gubernatorial "stimulus" jaunts to Argentina & such.

The cut-n-run strategy taken by Amazon can only last so long, unless they decide to just end their U.S. affiliate program.

If you use gov't subsidized copper or fiber to make some dough-ray-me, the gov't is going to use that cable to give you a dollaroscopy, one way or the other.

Kind of sucks that Amazon just throws their affiliates into the thresher that way, just to make a point.

turbolapp

I've said it before, the states would all be stupid not to follow suit. What do they care if this tiny population that make alot of revenue is affected? Most taxpayers have never heard of of AM. So, yeah, the real question here is what is Amazon going to do from here if/when this keeps happening?

Bofu2U

I'd like to remind you, that due to those "Amazon throwing their affiliates into the thresher" was one of the primary reason the affiliate tax FAILED in Maryland.

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fm1234

posted by JustLloyd:
You think Amazon has a responsibility to subsidise affiliates in a couple of states at the expense of everyone else?

Every single affiliate program worth promoting should pull out of these idiot states, and eventually the US entirely, give the whole industry to the Ukrainians and Pakistanis. These measures are not revenue-enhancing; they are thinly-veiled pandering to the local economy lobby in those states. And they are backfiring, and that's a good thing.

posted by turbolapp:
And you make a good point by accident: a 5% cut of all affiliate activity in the entire world is a drop of piss in a very large bucket of debt and deficits. These measures emphatically are not revenue-raising measures, as they are framed. They're just window dressing pandering to the electorate. And to answer your question, Amazon's most profitable strategy will be to nix affiliates in each state that pulls this shit, then US affiliates entirely, then nix its affiliate program on its US site and just have an affiliate program for non-US residents promoting non-US Amazon sites. They milk the US affliate efforts all the way down until there's nothing left and then move on, like any smart business should. Ultimately the fucktard 99% is going to blame Amazon and other affiliate programs for these issues, not the government. Why should they do anything but maxmise the profits they make on the way out?




Frank

briggszilla

I've been in the Amazon affiliate program for a couple years now, using it off and on in my websites. I JUST moved to Rhode Island a month ago, and had updated my address with Amazon a couple days ago. Wish I hadn't now.

fm1234

Also, now I am not an attorney, but I do hope that New York/Rhode Island/North Carolina/wherever else affiliates who are making real bank realise that these measures almost certainly do not apply to them. Redomicile your business out of state and keep on going like nothing happened.


Frank

nat3r

i found this out literally 5 minutes after i got denied by amazon (as i am a Rhode Islander)

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http://protection.ppc.bz

TylerDurden

They cut off Hawaii residents today too. I changed my address to Washington.

chatmasta

File an LLC in Delaware

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jayson_co

Not a case of tax fraud?

scubaslick

Well at least Rhode Island doesn't have to worry about getting pregnant.

fm1234

posted by jayson_co:
<~~not an attorney

Noteworthy, however, that literally thousands of businesses are incorporated outside of their main physical place of business, either interstate or internationally, often for the explicit reason of taking advantage of favourable tax conditions and generally to no ill effect.


Frank

JustLloyd

Seems appropriate.
YouTube - DEADWOOD Al Swearengen

rksoro

Hawaii Governor has until wednesday to veto the tax bill. wait and see.