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Thread: California taxes internet sales, Amazon reacts immediately

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    may the Bruce be with you CoffeeShark's Avatar
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    California taxes internet sales, Amazon reacts immediately

    Amazon ends deal with 25,000 California websites | amazon, affiliate, california - The Orange County Register

    Gov. Jerry Brown has signed into law California's tax on Internet sales through affiliate advertising which will immediately cut small-business website revenue 20% to 30%, experts say.

    Amazon has already emailed its termination of its affiliate advertising program with 25,000 websites.

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    ... Speedde423's Avatar
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    Re: California taxes internet sales, Amazon reacts immediately

    Dumb, dumb, dumb. Did CA not see this one coming? Did they really not see Amazon leaving states where this has been done before?
    The state Board of Equalization says the tax will raise $200 million
    Don't think so buddy. Jobs will leave the state, incomes will decrease, overall tax income will decrease. All the while, Amazon will not be paying taxes so their income from California will probably change little, if at all.

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    Re: California taxes internet sales, Amazon reacts immediately

    Wow. Theyre shooting themselves in the foot with that.

    Did you guys know that Cali has a "original price tax"? Say you buy a $49 phone with a commitment, they still tax you on the $600 unsubsidized price...so a $49 phone becomes $100. Crazy.

    It's like these guys think taxing everything will fix their situation. Amazon's doin what every other smart biz will do, high tail it outta there.

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    C-57D VincentVega's Avatar
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    Re: California taxes internet sales, Amazon reacts immediately

    big, evil business must be taxed, even if it is unconstitutional. it's only fair!

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    Re: California taxes internet sales, Amazon reacts immediately

    I actually know several people who received these termination letters who's income from their sites are almost exclusively dependent on Amazon.... They will now be in the position of trying to figure out what next... How to make ends meet.

    Anyway, as you guys know... In the past, more than 68% of my net income gone directly to taxes (most of which from the State of California)... Imagine how you'd feel if you brought in say $100k (Just as an easy example) and only got to keep $32k to actually use. Hell, I know people who work at Fast Food Joints who make about that much (or a little more) anyway.... And those people work 10x less than I do, Have no education, and have an easy/mindless job.... And they dont get taxed nearly as much.

    Then as UI mentioned... There is the original price tax... Bottom line, say I give a client a discount... I either need to pass off the original price tax to them, or pay it myself... On the other than, if say I set the original price really low for something (say services)... The Tax Franchise Board takes a hard look at it and goes "WTF???!!" and lets just say that they start looking at stuff really hard. ---Bottom line, You best take great care to keep things on the up and up.

    Then the Cigar taxes... California has a 61.53% tax on all Cigars + there is a 10% Federal tax... This also applies to cigars purchased online... I.E., Say I buy a $200 box of cigars which is on sale from $200... Well, I now need to pay in effect 61.53% + 10% on the $100 + 8.775% on the $200 because that was the original price. My box of cigars which was only $100 becomes $189.08 after taxes. ---By the way, I am forced to report any purchases of tobacco online within the year. Granted, after taxes... I spend the SAME amount buying online as in a Local Shop (which is what I now do).

    Any purchases made out of state Via Mail-Order, Phone, Online, Or in Person... Must be reported to the state of California so that they can make sure you pay sales taxes on what you bought too. Now, keep in mind... Lets say I go to Colorado and buy something... I just paid 8% sales tax... I am then forced to report that to California... I then have to pay additional taxes on top of that.



    I guess my point is... This state and the Democrats within it seem to always think that higher taxes are the answer to everything. Well, the higher/new taxes (along with additional regulations) are driving jobs and revenue out of the state. Those higher/new taxes are FORCING people like me to move. I love California! But, at this rate... I'll have at least another $40-50k/year in my pocket if I leave (That's even considering what I'll pay in Another State + Federal Taxes). If that's not incentive, I dont know what is.
    "Teck will be working on God's forum" -VincentVega

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    may the Bruce be with you CoffeeShark's Avatar
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    Re: California taxes internet sales, Amazon reacts immediately

    so... why do you love California then?

    there are plenty of places with beauty, great people, great climate, and lower taxes and less B.S.

    I love upstate NY, but I'm not living there.

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    Re: California taxes internet sales, Amazon reacts immediately

    Quote Originally Posted by CoffeeShark View Post
    so... why do you love California then?

    there are plenty of places with beauty, great people, great climate, and lower taxes and less B.S.

    I love upstate NY, but I'm not living there.
    Mostly the weather... Look, I've yet to find anywhere else I could live that I could have less than 22 days a year of "bad weather"---I.E., Days that are NOT sunny.
    "Teck will be working on God's forum" -VincentVega

    "...and I like killing zombies and Cap'n Crunch. you put those two together and you've got one LETHAL-ASS good time combo" -DanFortH

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    C-57D VincentVega's Avatar
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    Re: California taxes internet sales, Amazon reacts immediately

    says the guy who lives inside the webserver

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    may the Bruce be with you CoffeeShark's Avatar
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    Re: California taxes internet sales, Amazon reacts immediately

    irony

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    The Tux Teck's Avatar
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    Re: California taxes internet sales, Amazon reacts immediately

    Quote Originally Posted by VincentVega View Post
    says the guy who lives inside the webserver
    I spend at a minimum 4-5hrs every morning outside.... wtf
    "Teck will be working on God's forum" -VincentVega

    "...and I like killing zombies and Cap'n Crunch. you put those two together and you've got one LETHAL-ASS good time combo" -DanFortH

    "teck is the noobest leet guy I've ever met" -CoffeeShark

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