ANCAPS Congratulate Amazon Who Threatens Calif. Lawmakers on Sales Tax Bill

Amazon.com Inc. sent a letter to California legislators on Monday threatening to end its business with marketing affiliates in the state if legislation passes forcing the Seattle e-commerce company to collect sales tax from California customers.

The letter follows similar threats Amazon made last week in North Carolina and Hawaii, after those states moved closer to passing legislation that would force e-commerce companies to collect tax if they have online marketing affiliates – people who get a sales commission from links on their own Web sites – in the state. Amazon won't say how many people are in its affiliates program.

Amazon's letter to California Gov. Arnold Schwarzenegger and leaders of the state assembly and senate called the proposed tax legislation "unconstitutional." The proposed law, AB 178, "ultimately would require sellers with no physical presence in California to collect sales tax merely on the basis of contracts with California advertisers," wrote Amazon's vice president for global public policy Paul Misener in a copy of the letter reviewed by The Wall Street Journal.

An Amazon spokeswoman confirmed the company had sent the letter and had no further comment.

Gov. Schwarzenegger doesn't usually take a position on legislation until it reaches his desk in final form, said deputy press secretary Rachel Cameron. However, "he has been clear that he does not support any new tax increases," she said.

Assemblywoman Nancy Skinner, a Democrat, said that the law could raise nearly $150 million in revenue for the state when she proposed it in February. The California law is based on one passed by New York last year, which Amazon and Overstock.com Inc. have challenged in court. Ms. Skinner's bill is still pending its first hearing in committee.

Ms. Skinner's chief of staff Frank Russo said the current laws are "manifestly unfair" because they put brick-and-mortar businesses at a competitive disadvantage. "The time is running out for tax avoidance schemes where companies purposely follow a business model that makes them scofflaws," said Mr. Russo.

http://online.wsj.com/article/SB124579383785943841.html

Frank, you're an imbecile!

ANCAPS Congratulate Amazon Who Threatens Calif. Lawmakers on Sales Tax Bill

ANCAPS Congratulate Amazon Who Threatens Calif. Lawmakers on Sales Tax Bill

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