Sunday, May 01, 2011

Quinn's "Amazon tax" costing Illinois jobs

No "Amazon tax" here
Do you remember those Amazon ads on Marathon Pundit? Well, they're gone, replaced by two fine purveyors, GoDaddy.com and Hewlett-Packard. Governor Pat Quinn, you know, the guy who compares himself to General George C. Marshall, signed a bill that orders Amazon to charge sales tax to anyone buying products through its Illinois affiliate members--such as myself.

But not only bloggers were affected by Quinn's shortsightedness, as Illinois native George Will adds his non-taxable two cents to the discussion:

Tim Storm, an Illinois businessman until a few weeks ago, is now a Wisconsin businessman. Herewith a story about how states can reduce revenue by trying to increase them and about the economic benefits of federalism.

Storm, 42, is founder and chief executive of FatWallet.com. The company, until recently one of about 9,000 Illinois "affiliates" of Amazon.com, directs online shoppers to online retailers, which often pay affiliates commissions for referrals that result in sales. Storm's company, which has 54 employees, used to be located in Rockton, Ill., but now is five miles up the road in Beloit, Wis.

One reason online sales are brisk is that the retailers are not required to collect state sales taxes. In 1992, the U.S. Supreme Court held that such taxes must be collected only by companies that have a "substantial nexus" — basically, a brick-and-mortar presence — in the state. Under this rule, Amazon collects sales taxes in only five states.

Illinois, comprehensively misgoverned and ravenous for revenue, has enacted what has come to be called an "Amazon tax." It requires Amazon and other online retailers to collect the state's sales tax. Amazon and many other retailers responded by severing their connections with their Illinois affiliates.
Will later explains that in the event of a fire at Amazon's Seattle headquarters, first responders won't be dispatched from Champaign, Illinois to put out the blaze.

Related posts:

Pat Quinn compares himself to Gen. George C. Marshall

Gov. Pat Quinn closing my Amazon.com store

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2 comments:

  1. Anonymous3:26 PM

    I'd suggest you find an affiliate program where shipments are not taxable to Illinois residents.

    Gov Quinn is relying on you and other affiliates selecting businesses with a presence in IL. These are then taxable to buyers under sales tax. He effectively shifts what he views as lost revenue from the unconstitutional use tax to an unconstitutional sales tax that he can have the companies collect.

    By selecting programs that have an IL presence, you are supporting Quinn's and the Democrats tax and spend agenda and helping them shift interstate tax-free sales into the taxable category.

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  2. Marathon Pundit3:37 PM

    Thanks for your input. According to Quinn, my presence in Illinois--I live here--makes me taxable.

    ReplyDelete