Amazon.com cutting off affiliates - Gambling Affiliate Place: Programs and Webmasters Forum

PokerDude · #1 03-09-2010, 11:32 AM

This post is NOT gambling-related, but these decisions by Amazon.com could have far-reaching effects for online marketers. What the regulators are failing to see, is that reduced revenue for affiliates, will mean less tax revenue for the state. Obviously, this was not thought out well. Rhode Island and North Carolina have also been shut-off by Amazon.com in recent months.

http://www.denverpost.com/business/c...785?source=rss

bb1webs · #2 03-10-2010, 01:41 AM

I think this is an old argument. Or it should be.

I assumed the reason there was no sales tax is because unlike a business with a real world scenario which uses state services, the places online are ghosts. It doesn't cost the state anything for them to exist .. EXCEPT that the state's viewpoint is that if you buy a red wagon on line then they are being cheated the tax which would have been paid for the item in the real world store.

I can guess how it will go down, but that aside, taxes are suppose to be levied to counteract the cost we as citizens put upon the system. I'm pretty sure they were never intended to show profit.
So show me how that places like Amazon are an extra tax upon the system and I'd be a lot more likely to believe in charging them for taxes.

the truth is that they aren't. But Colorado would have you think so, in order to justify their actions.

PokerDude · #3 03-10-2010, 12:01 PM

Regardless of whether the argument is new or old, this is the 3rd state where Amazon has totally cut off affiliates from their program. Given that Amazon is a leader in online sales and affiliate marketing, I sure hope that others don't follow suit here. Often, the big boys set the precedents, and all other follow the leader.

bb1webs · #4 03-11-2010, 12:10 AM

I agree.

Curious as seldom do we see a situation arise where it can be argued in either direction that the financial end result will be more beneficial to the people as a whole ... meaning it is surely not an easy thing to calculate whether it is more benefit to the state's inhabitants to force the tax (upfront money) or to instead embrace the net and see where the more money will stay benefiting the locals, be it by the extra people the more consumer-friendly approach brings to the table, because I can see where such tax might influence whether or not a company chooses to do business in that state which I would imagine has direct effect on the amount of jobs because while the brick and mortar stores obviously provide employment for the locals, so does the parcel delivery service. There's a lot of people working at fedex, ups and even the usps who may not have the same job this time next year if a company as big as Amazon is no longer sending parcels to that state.

Interesting to see what they come up with. As I recall, the reason they didn't have internet taxes back in the day, was to encourage online buying and it was (I think) largely considered the trade-off for the cost of shipping.

You'd get the product a little cheaper than could be found at local stores, pay the shipping which then put you back at about the same price as local stores. ..... then they didn't tax it, which in my mind and i think that of the people behind the no tax theory .. made it a level playing field.

Now its like Colorado is doing the same thing as you have seen gov do in the past like when they started income tax. That my friends was suppose to be over right after the war (#2) ... or they'd have never got it past the citizens.

People stepped up during a tough time and said okay, we're reasonable people. Take the money. But like governments are proven to do, they didn't want to give back such a powerful tool when time came.

I would conjecture that some "emergency" became born which was also pressing and the gov just kept putting off the rebuttal of the income tax until people stopped harping about it.

Taxing us coming and going is and always will be BS.

PokerDude · #5 03-11-2010, 12:07 PM

Well, it's the local merchants who are definitely suffering, with the likes of Amazon taking away lots of local business. I guess if I was a local bookstore in CO, I'd be pissed too. Less revenue, means less taxes, and I can't say that I blame the govt (did I really say that ?) in that regard. Although I don't like, I think it's fair to expect Amazon.com to pay taxes, but for Amazon to cut off affiliates is the scary part, that I do not see justification for.

bb1webs · #6 03-11-2010, 11:22 PM

I think they're choosing to use the affs as a ready-made voice in their corner, so to speak. Shitty, yes, but they're doing it.

It must be quite a power trip to know you can afford to shun an entire state (country perhaps?).

Pokerkeep · #7 03-12-2010, 09:39 AM

Quote:

Originally Posted by PokerDude

Well, it's the local merchants who are definitely suffering, with the likes of Amazon taking away lots of local business. I guess if I was a local bookstore in CO, I'd be pissed too. Less revenue, means less taxes, and I can't say that I blame the govt (did I really say that ?) in that regard. Although I don't like, I think it's fair to expect Amazon.com to pay taxes, but for Amazon to cut off affiliates is the scary part, that I do not see justification for.

I disagree - The state has no business taxing those sales.

the Amazon retailers all pay taxes in their own locale. What the State is doing is forcing people to pay taxes twice, both to them and to their local government. I live in Canada and according to our rules, I charge taxes if my customer purchases goods at my shop regardless of where the customer is from. But if I mail/ship goods out of my province or out of the country, I don't have to charge the customer any sales tax. That seems fair to me. Why should non-residents pay sales tax to my province when they've never even been here?

Amazon also pays taxes, just not to this particular state. They also support their localities through employment, etc.

To me, this is just another tax grab and kudos to Amazon for standing up to them.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)