Amazon Cuts North Carolina Affiliates to Avoid Tax

[CashFlowDepot]

Article from Wall Street Journal

Amazon Cuts North Carolina Affiliates to Avoid Tax - WSJ.com

 

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[WestCoast]

good for them!

this country is all about driving out businesses instead of helping grow them.
What a time to do it too.

 

[MJ DeMarco]

Ahhh the dangers of not driving a Fastlane ... you leave someone else in control.

 

[LightHouse]

Heard they did the same in Rhode Island.... incredible.

MJ you are correct, but it's also an opportunity for someone to learn to adapt. Incorporate in another state, back in business. Sure you can sit and pout that your income was just cut in half, or you can quickly change and adapt to the situation and move forward.

 

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[sulli]

Well, these states had better be careful, because most internet based businesses can be operated in any state. If internet taxation or affiliate nexus issues affected my business, you'd better believe I'll be moving out of that State.

But, what this means in the big picture is that the State could potentially lose more money than they gain. If businesses pull out of State or shutdown their affiliates within the State - not only does the State not collect the internet tax or taxes through affiliate nexus, but they lose income tax through traditional means.

I hope that made sense This stuff pisses me off.

 

[sulli]

There are some good podcasts on this subject at Affiliate Marketing Insider

Good interviews with the Performance Marketing Alliance, who are leading the fight against this stuff.

 

[Russ H]

I think we're going to see "internet safe states", just like the states that cater to C corporations, RE investors, LLCs, etc.

Some states recognize the advantages of having businesses-- lots more local jobs, or if their charges/taxes are less than other states (but still there), they still make money. And jobs.

Of course, if you have your (fastlane) internet business so automated it doesn't *need* any human labor . . .

-Russ H.

 

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[kurtyordy]

bump due to Colorado discussion

any NC folks here who know the outcome?

 

[Bobo]

It isn't just Amazon... look at the effect that Millionaire taxes are having on states.

The legislature sits down and realizes that they have a shortfall so they come up with a tax that only hits those damned rich millionaires. Smart policy right? You nail a very small percentage of voters that way.

What they did not count on is that people who earn over a million per year generally have a GPS is the rich guy mobile and plug in the coordinates for a state without the millionaire tax.

Check out what's happened in states in the northeast that have gone to that well one too many times.

So what's this got to do with Amazon and a couple states? Simple - business will move to the most tax friendly location and do business where it is least penalized.

Several states, the most heavily taxed ones ironically, are on the verge of bankruptcy right now because they realized too late that their projections failed to take into consideration that those hit by new taxes might decide to leave the state and take their company with them.

NOTE: Studiously avoided political overtones here, just pointing out the those States which tax most heavily are in the worst shape economically. Whether it is cause and effect or one hell of a coincidence I'll leave to the reader.

 

[MJ DeMarco]

Politicians enact policy like they're in a vacuum. The expect no reaction from the people they penalize and tax. Tax "millionaires" 70% and they expect millionaires to DO NOTHING, sit back, and say "Oh well". Do you think we become millionaires sitting back and being aloof to the hand we're dealt??? The reality? We pack our bags, move our businesses, lay off the employees, leave and tell the state to F*ck off. I already hear there is a mass exodus from the state of Oregon ... no worries, maybe that bum on the street can give you a job.

 

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[PaulRobert]

We pack our bags, move our businesses, lay off the employees, leave and tell the state to F*ck off. ... no worries, maybe that bum on the street can give you a job.

:great:

 

[Bobo]

ooops double post

 

[Bobo]

Politicians enact policy like they're in a vacuum. The expect no reaction from the people they penalize and tax. Tax "millionaires" 70% and they expect millionaires to DO NOTHING, sit back, and say "Oh well". Do you think we become millionaires sitting back and being aloof to the hand we're dealt??? The reality? We pack our bags, move our businesses, lay off the employees, leave and tell the state to F*ck off. I already hear there is a mass exodus from the state of Oregon ... no worries, maybe that bum on the street can give you a job.

Yeah - I was trying to be PC. Then hear comes MJ translating good bobo into actual bobo

 

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[TJComer02]

This is exactly why I posted the question i did in the ebiz section. Simply because I don't want my one source of income to be taken away, or severely cut for that matter. If you've got your eggs in ten baskets, and each basket is worth 100K, then if you get 20% taken away, you've still got 800K. I know it sucks but it's better than having two million in one basket and getting one basket taken away.