Amazon’s response in California, as in other states, has been to threaten
balance bracelet to sever ties with affiliates if such laws are passed. In that way, the company can circumvent any sale tax requirements. It took the first step to carry out the threat in Illinois last week, saying it would eliminate its affiliate program there on April 15. Amazon has previously dropped affiliates in Rhode Island, North Carolina and Colorado under similar circumstances. George Runner, a member of California’s Board of Equalization, which collects several kinds of taxes, said changing tax laws would end up hurting Amazon’s 10,000 affiliates in the state. Amazon would simply continue selling products directly from its Web site or through out-of-state affiliates, without having to collect tax on the government’s behalf, he said. California would end up with no extra money, Mr. Runner said, despite
powerbalance predictions otherwise. In fact, it may get less considering the financial damage done to Amazon’s affiliates. “If the argument is revenue, we don’t believe it will happen,” Mr. Runner said. Amazon is challenging the legality of a New York law enacted in 2008
power balance wholesale that requires it to collect taxes based on its affiliates. The case is currently in the state appeals court.
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