Amazon fires California Associates ahead of Internet Tax

amazon tax, california ab 27x1, amazon fires california affiliatesOne California budget trailer bill, the Amazon Tax, AB 27X1, that would tax all Internet purchases made in California, is waiting Governor Brown’s. Amid unseen ramifications and myriad unseen consequences, desperate legislators crow about a potential $200M tax windfall. Opponents argue that AB 27X1 (sounds like Internet code, yeah?) will kill a golden goose and shutter e-retailers and internet affiliate business thus scuttling any hope of a fat payday for Sacramento spendthrifts. Sure enough, today Amazon fired all of its California Associates. See the letter below

It is estimated that more than 10,000 California affiliates (including this website) will be affected. Amazon challenges the constitutionality of such regulatory legisaltion and will have its day in court, no doubt. Til then, Amazon says, “Similar legislation in other states has, counterproductively, led to job and income loss and little, if any, new tax revenue.”

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  1. says

    I’m extremely disappointed in Amazon. What they forget is that those 25,000 affiliates that they discarded at the drop of a hat in the middle of the worst economic mess in our lifetime, were also Amazon customers. Actually, super customers. Because they had a greater familiarity with Amazon products, they bought more products.

    When it comes to customers, then, Amazon has a bad case of mission statement halitosis: “Start with the customer and work backward? Earth’s most customer-centric company?” Not for Amazon’s former California super customers…

    Note to Jeff Bezos: The simple math of why it pays to pay attention to how you treat your customers: A satisfied customer will tell 3 other persons about how good your service was. But a dissatisfied customer will tell 11 others about his or her experience. Thus, for every dissatisfied customer you lose, you have to gain four satisfied customers just to barely stay even!

    Bye, bye Jeff.

  2. says

    What is the real effect $ wise on Halfway and what does it mean practically for this blog as an example of what it may mean to others?

  3. Common Tater says

    Our moron legislators don’t seem to realize that the people who must pay this sales tax are the residents of California. They seem to think that money will just fall out of the sky if they pass enough unconstitutional legislation…

  4. Cory says

    I know for sure that any retailer that lobbied for the tax won’t get my business.

  5. says

    And the Legislature was counting on those dollars to balance the state budget. Why doesn’t government ever believe that the private sector actually acts in its own self interest?