is expected to raise an estimated $317 million a year in new state and local government revenue.

The 25,000 plus affiliates in California combined paid $152 million in state income taxes last year

Many of the people who use the affiliates program on Amazon, do so because they're not able to join the workforce. Some are retired and can't afford their medicine and other living expenses. Jerry Brown is effectively forcing these people to move to another state, so they can tack on a little extra income. It's not a question on if some of these people will move, it's a question of where. Most that I've read about today on the Amazon Affiliate's message boards, said they will move to Nevada. Some even said they'd move to New Hampshire, since Nevada will probably fall in line with California, and adopt the bill.

Don't get this twisted. This was brought on by brick and mortar lobbyist groups. Places like Wal-Mart, who don't like that Amazon can sell certain things cheaper than they can. We all know Wal-Mart makes a pretty good profit, and are in no danger of going out of business. They're just bullying because they want more than they already have.

Also, Jerry Brown shouldn't even be in office. He's already served two full terms as our governor. There needs to be term limits. This asshole did terrible things to Oakland, as its mayor. Why on Earth did we re-elect him?

One last thing. If you've been pondering that big ticket item on Amazon, and you live in CA, you may want to consider purchasing it now. If you have a sizable wish list there, too, now would be a good time to get it on the cheap.

Let me also state, that Governor Jerry Brown's platform was; he wouldn't impose or seek any new taxes, without the vote of the people. How many times have we heard that before?

Someone else left a comment that I fully agree with and endorse...

Like with other states, this will be a net LOSS of income for the state!

Amazon (and other major retailers) has fired its affiliates in Califronia. That means:

1) Those California reidents now lose hundreds of thousands of dollars of income from Amazon. Which means Califonria loses all the income tax on that income.

2) Many of those affiliates will move out of California. And they will be taking their income with them. That means California loses all the income tax on ALL of their revenue.

3) Since those affiliates aren't in the state any more, they won't be spending money at other local businesses, further decreasing taxable revenue for the state.

4) All the retailers who fire their California affiliates still won't need to collect CA sales tax. So California still won't derive any revenue from this.

5) Most likely, California will have to spend millions of dollars in legal fees to defend this unconstitutional tax and will ultimately lose anyway.

So in the end, California will NOT gain any revenue. The state will LOSE money trying to defend an unconstitutional tax. The state will LOSE money from lost income. The state will LOSE many industrial entrepreneurs and the money that they spend in the state.

Overall, this is a major loss for everyone and yet another example of how unfriendly to business CA has become!

And that's exactly how it will play out. Exactly.

Email from Amazon to me -

Hello,

Unfortunately, Governor Brown has signed into law the bill that we emailed you about earlier today. As a result of this, contracts with all California residents participating in the Amazon Associates Program are terminated effective today, June 29, 2011.

Fuck you, Jerry Brown. "no more budget gimmicks and no new taxes without voter approval."

That is ridiculous. Taxes are never the answer. People are always narrow-minded and look at these economic problems with a ceteris paribus mentality (everything held constant). That's not how the world works! They institute these laws assuming that businesses and consumers will just fall in line. Not true! People optimize and, like PK pointed out, Californians will change their habits to reflect these changes.

terminated as in "screw it, we're not doing this" or terminated as in need to be reworked to accomodate the new law?

Terminated, as in this is against the constitution, and we won't help you get free money that's not owed to you.

So folks in cali can no longer participate?

That seems like the worst way to generate revenue ever. Ruin business. Brilliant.

So PK are you going to be moving your business? Or will this kill it?

My Amazon affiliate thing? Naw. It was originally created so I could try and generate some things for contests here. Trick is, though, that you have to sell a crap ton of stuff to make anything. My buddy bought a $1,000+ laptop and several other high priced items via my links, and I'll be getting $30+. If I ever took it seriously, I would have made websites etc.

I'm angry over this, because he didn't involve us in this decision, and he didn't bother checking who it would affect. I'm angry, because in the span of one day, this all went down. There was no time to appeal this decision or anything. Our gov never thought this through. He catered to the big brick and mortar stores, and saw that he could possibly make some quick, free money.

Lib?

Sounds like most politicians, I would be upset as well, and it will probably take alot of time to get it straightened out in court. Because you know the Gov wont change his mind because that would be the dreaded flip flop. Which I never really understood, you can only have one an only one position on anything your entire life? I mean if this Gov realizes he made a mistake and reverses it he gets dinged anyway. Now to do that once or twice on an issue IMO isnt bad past that I think you are just going for what is popular opinion.

Hopefully he will wake up and make the right decision but I wouldnt hold my breath.

So, as I've been reading more about this, Amazon is not obligated to have customers pay the sales tax because there are no CA affiliates any longer (law no longer applies). <3 Interstate Commerce Clause

EDIT: This is a really interesting read.

http://www.law.cornell.edu/supct/html/91-0194.ZO.html

Right, since they don't operate out of CA. They operate out of WA. Affiliates were operating out of CA, but the merchandise was sold from within Amazon. Money from nothing. Just the way politicians like it.

@Dubl I'm not holding my breath, either. Brown is a crook, and there's no way he'll ever willingly reverse his decision. His decision. It wasn't ours.

People need to realize that corporations, companies, businesses, etc. are in business to make money. They're not going to lay down and give in. For example, sales tax is a bad example, but other taxes on businesses are typically passed down to consumers anyway (just look at cigarette prices!). People are happy that the government starts raising taxes on "the rich" but the majority of Americans end up footing the bill! I give Amazon props for having cojones and not giving in.

I give Amazon huge kudos for doing that. There are many that are mad at them, but it's the principle of the matter. They showed integrity, and Brown, who represents CA, showed none.

I use to shake my head at the people bad mouthing CA, and expressing desires to move. I think parts of it are beautiful. Then I realized; they're not expressing their hatred for the state. Just in how it's run.