Friday, June 26, 2009

Cut off by Amazon

Following up on their threat to cut off Amazon Associates in light of North Carolina's plan to use affiliates in North Carolina to force Amazon to tax all NC purchases, Amazon has responded by cutting off all NC Associates. I just got the email this morning. Confederate Yankee has the text.

So smart of North Carolina. Now they won't get the money from taxing Amazon and they'll have to pay to defend against Amazon's lawyers.

And small-time associates like myself and many school organizations that have used the affiliate program to raise money for our schools and supplies have now lost this additional money to help students.

The News and Observer has more.
The click-through provision is intended to give the state justification to levy sales tax on sites such as Amazon.com, which has no physical presence in the state. The company says the plan violates the Commerce clause of the U.S. Constitution.
The paper quotes one small businessman who says it's enough for him to move his business out of state. He says he was making $70,000 a year from it. Amazing. I wasn't making any sort of big bucks, but I did make enough every year for over 10 years to buy extra materials for my classes.

Great going, North Carolina legislators! All I can hope is that Amazon's brinkmanship induces the legislators to pull back and ax this provision from their proposed tax increases.