Amazon Cuts Off All North Carolina Affiliates Over Questionable Proposed Tax Bill
from the tax-amazon dept
You may remember last year -- when New York passed an ill-considered law that attempted to twist the interpretation of its tax law to make Amazon responsible for collecting sales tax in NY because some affiliates were based there. This is problematic, because it basically defines an affiliate as an employee of the company, when an affiliate is really just an advertiser. In response, Amazon went to court, but another retailer, Overstock, went the more drastic (and press friendly) route, and cut off all NY affiliates. I guess Amazon was kicking itself for not thinking of the same thing, and now that a similar issue is showing up in North Carolina, Amazon has abruptly cut off all affiliates in the state, leading to anger among many of those affiliates. The question is whether they turn that anger against Amazon or the state government for pushing forward with such a law.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: affiliates, north carolina, taxes
Companies: amazon
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So the tax man in any state has nothing to do or say to me. I am not an employee of Amazon, nor do I operate an amazon office. I sell ad space.
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Thanks Bev
Bev Purdue, govenor of NC since January...
Began using Education Lottery money to fund non-education related programs.
Raised tobacco tax, NCs #1 cash crop, a full $1 higher than the recent federal requirement.
Can you get anymore out of touch with your constituants?
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If the legislature assumes that not having people in the state means they won't sell ads to businesses in the state, doesn't that mean the businesses in your state will lose potential customers, and thus income (and thus more sales and income tax) too?
I know they want to collect the money they really should be receiving, but this poorly thought out approach is like shooting yourself in the foot, then in the other foot.
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I'm Know Expert On Tax Law
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Re: I'm Know Expert On Tax Law
Or the English language, apparently.
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Re: I'm Know Expert On Tax Law
WTH is your point?
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taxes
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Re: taxes
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paying attention now?
Democrats = Higher taxes, new taxes, more taxes, GIANT GOVERNMENT, more gov intrusion in our lives, personal responsibility out the window as you must be a victim of something so lets create a tax and throw money at it, forget the free market lets try Marxism or better yet Fascism! Freedom? We know whats better for you than you do.
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Re: paying attention now?
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Re: paying attention now?
If Republicans were really about free markets why are they in favor of Intellectual property? That's a form of government restriction, against free markets, often in favor of special interest groups at the cost of society.
Not to mention wire tapping and such by the Bush administration. Less government intrusion? I think not.
Also, I'm not defending democrats either.
I think Ron Paul would make a good president. He really believes in less federal government control and more individual freedoms.
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Re: paying attention now?
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Re: paying attention now?
And both parties = lies, corruption, secrets and self serving.
Too bad we can't have the desirable traits of both parties and none of the evils. Sadly, no one who used a political platform like that would ever get elected. So we go with the least damaging person, if we can figure out just who that is.
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Re: Re: paying attention now?
I don't think either party has very many desirable traits.
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Re: paying attention now?
So the last 8 years were...what again?
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Re: Re: paying attention now?
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Google
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Re: Google
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Fed Sales Tax
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employee of the company?
Affiliates, like door-to-door salesmen, solicit business for the company, but don't cash the customers' checks or necessarily deliver the product. Like salesmen, they get paid a commission on each sale. Like having salesmen, that's a sufficient presence in a state to obligate the company to collect sales tax. Hard to see how Amazon even thought they had a real case.
I guess Amazon could still appeal, but I think this lawsuit was just posturing, just like this threat of dropping affiliates, which is designed to see whether they can get NC residents upset enough to get the law changed. If not, they'll reinstate NC affiliates eventually (though perhaps only after enough states have passed similar laws).
Eventually, the only losers will be the tax cheats this law is targeting. Sad that Amazon is working so hard to protect them.
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Amazon's right
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Taxes on Affiliates
I live in NC and am a democrat. However, on this one I have to agree that taxing the affiliate is ridiculous. However, republicasn talk about people who make themselves victims and cry. Well, why don't they start with themselves. We are in tight times right now and big cuts have to be made in government but taxes are going to have to be raised a bit as well. Its the only way to get through it.
So, republicans stop whining and get back to work. You have the benefit of schools, airports, nice roads, fire protection, police protection, regulations on banking, and any number of other things that come from paying taxes. Live within your means, pay your taxes and move on.
Complaining about tobacco taxes? Whatever, smoking is more of a tax on society in terms of healthcare costs than the tax on cigarettes will ever be. Once again, people making themselves victims so they can have cheap cigarettes. I am not trying to punish smokers. But don't expect sympathy from me on cigarette taxes which should be funneled into medicare and medicaid for "victims" of tobacco related illnesses.
Anyway, just my rant for the day.
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taxes
They take what they want to whenever they want to
And our needs they always come last.
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