Amazon Ends Affiliate Program in Illinois

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Amazon has ended its affiliate program in the state of Illinois after the governor signed a law that requires in-state affiliates to collect state sales tax.

The Internet retailer notified its affiliates in Illinois yesterday that it would sever their business relationships after Illinois Gov. Pat Quinn signed into law a bill that would require in-state affiliates to collect state sales tax on purchases made by Illinois residents.
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Why do I love this. Big Business standing up to governments.
 
I'm in Chicago and I'm glad big business's like amazon taking a stand. Gee, if they wanted to save money, maybe they should start cutting costs in the government sector rather than make its citizens pay for it. Patt Quinn got lucky that the previous governor got kicked out of office and he inherited the seat because he ran 2-3 times and didn't get elected in the past.
 
What they think:

Gov. Quinn said in a statement that the "law will put Illinois-based businesses on a level playing field, protect and create jobs, and help us continue to grow in the global marketplace."
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What really happens:
Amazon, which has opposed similar efforts in other states, informed its some 9,000 Illinois affiliates in a letter that it would terminate the program on April 15
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Eventually, Amazon will just have a warehouse in a few states and cut all affiliates. Amazon knows a big reason a lot of people shop online is to save on taxes.
 
Government, as usual, is the worst thing that can happen to any private business.
 
The government doesn't really care about Amazon it's looking to the future and trying to find a way to get taxes on anything you buy online if you live in that state. It is a small step that direction. It's all about the money. God fobid they lower funding for any of the social programs they provide.
 
mdameron said:
Exactly.

I love Amazon but why should B&M stores have to charge sales tax but Amazon doesn't?
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Technically, we are all breaking the law by not reporting it ourselves anyway. Since it is functionally impossible to audit an individual for sales tax, they want the businesses to just extract it from the sale. It's a much more efficient way to do it.

I don't like paying sales tax, but it's not really fair to the B&M stores in Illinois who are providing jobs, paying property tax, etc. to compete with a built-in advantage like that.
 
Good for Amazon, at least somebody is standing up to these tax greedy politicians.
Think I'll go look for something to buy on Amazon, to reward them for standing up to big government.

Sorry for all the affiliates, but that's the price of electing such a greedy government.

One large affiliate (CouponCabin I think) has already stated they will move operations to another state.
 
As far as I can tell, the government doesn't seem to like businesses from WA. Thats racist!
 
If they made a flat rate tax across the country, even if it was like .05% in the first place, I think it would have done well enough with a proper distribution without making people shy away from buying online. Maybe make it where the taxes go to the state of where its being shipped since its where the customer lives. Now that they are trying to backtrack, forget it. People are too used to not having to pay tax on online purchases now.
 
Catboxer said:
I think it balances out when Texas has no income taxes, which were just raised 66% this year in IL. Sales tax in Chicago is 9.75! I love giving away my money!

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Haha, "raised 66%", or went up 2 percentage points.
 
Yes, but that doesn't sound near as sensational!

3% is now 5% and that would be a 66% increase! I'm outraged!





 
Katalysis said:
They are not backtracking. This has been the law since the SCOTUS decided in 1992 that tax could be charged on internet retailers that had a presence in that state. We've all been living with that for a long time.

http://en.wikipedia.org/wiki/Quill_Corp._v._North_Dakota
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The problem with this law is that it redefines what constitutes a “presence”
These affiliates are private contractors who redirecting sales to Amazon, they are not employees, and should not be considered a presence.

The problem with this law is that it redefines what constitutes a “presence”

These affiliates are private contractors who redirecting sales to Amazon, they are not employees.


The case in Texas, where Amazon had a warehouse that was owned by a subsidiary, was a more obvious ploy to avoid taxes. Of course Amazon was within their rights to close the warehouse when Texas ruled that the warehouse was considered a presence.
 
Katalysis said:
Technically, we are all breaking the law by not reporting it ourselves anyway. Since it is functionally impossible to audit an individual for sales tax, they want the businesses to just extract it from the sale. It's a much more efficient way to do it.

I don't like paying sales tax, but it's not really fair to the B&M stores in Illinois who are providing jobs, paying property tax, etc. to compete with a built-in advantage like that.
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Them maybe IL should lower/remove sales tax.
 
orgy08 said:
Eventually, Amazon will just have a warehouse in a few states and cut all affiliates. Amazon knows a big reason a lot of people shop online is to save on taxes.
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Ah, except that if a company has a physical presence in a state then they need to collect sales tax from residents of that state. So what you wrote makes absolutely no sense since it would result in everyone paying sales tax.

The reality is that Amazon is doing fine, losing 9000 IL affiliates will change nothing other than those affiliates not making any money anymore, and those affiliates no longer paying income tax to IL on the Amazon earnings. The consumers will still buy from Amazon through other channels.
 
Good for Amazon. I hope it starts a trend and others follow suit.
 
nutzo said:
Good for Amazon, at least somebody is standing up to these tax greedy politicians.
Think I'll go look for something to buy on Amazon, to reward them for standing up to big government.

Sorry for all the affiliates, but that's the price of electing such a greedy government.

One large affiliate (CouponCabin I think) has already stated they will move operations to another state.
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I did, bought a Track IR w/ Prime.
 
LeninGHOLA said:
As far as I can tell, the government doesn't seem to like businesses from WA. Thats racist!
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You mean discriminative.

Well done Governor of Illinois, now your "increasing jobs, and making profit", has in turn lost business, and the affiliates will most likely move base of operations as well, all because you wanted a piece of the pie.
 
Thuleman said:
Ah, except that if a company has a physical presence in a state then they need to collect sales tax from residents of that state. So what you wrote makes absolutely no sense since it would result in everyone paying sales tax.

The reality is that Amazon is doing fine, losing 9000 IL affiliates will change nothing other than those affiliates not making any money anymore, and those affiliates no longer paying income tax to IL on the Amazon earnings. The consumers will still buy from Amazon through other channels.
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No, it means that they would only have a presence in those few states, and if those states don't have a sales tax, then nobody would be paying sales tax.
 
Its fair to physical stores here because they have a physical presence. Amazon does not Of course sears and Walmart would like it, because they have to pay out taxes anyway from purchases. They also charge you for shipping site to store and while I believe the core reasons wide spread internet taxes haven't been made (transaction location, business location destination of good who gets the money) is still valid for stores that have locations in the state if the item is shipped from the store directly to the customer, the transactions may have nothing to do with the local outfit.

I have paid taxes on something from amazon probably through a company in the state (it came US post the next day), that is not what they other companies care about they want you to be taxed on everything even if it comes from somewhere else and has nothing to do with anything in this state.

Its not as if I see oh 17.99 here but tax vs 17.99 there no tax, I usually see 20.99 here and tax shipping if I buy it from them online vs. Amazon 15.99 or less free shipping and no tax, I'd shop there if they had tax... but I erm, don't buy items to USE in Illinois online either *cough cough*
 
petertew said:
Texas is pretty nice (especially Austin, though it is more blue there than the rest of the state).
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I think he was being facetious since it was in the news recently that Texas has done the same thing. :p


I will say this though. As much as I dislike taxes myself, I do think that the states that enforce this kind of stuff have a point. It is an unfair practice by the big internet companies. Why should everyone else in the state have to pay taxes EXCEPT if you're an Amazon affiliate? Its simply unfair to the other local businesses that are not affiliated with Amazon.

IMHO, lower taxes, but enforce them such that there are no loopholes, and everyone pays them. Then it would be fair.
 
LeninGHOLA said:
Nope, I mean racist. WA state = master race. Why else do we have the best and biggest companies? We are also the most arrogant and condescending. It's awesome!
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We're marching to a faster pace!
Watch out here comes the Master Race!


:D
 
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