I'm not sure how many Hawaiian Hubbers we have here, so I thought I would share what an Amazon Rep forwarded to me yesterday. Personally, I think it stinks!
"We regret to inform you that the Hawaii state legislature has passed an unconstitutional tax collection scheme that, unless vetoed soon by Governor Lingle, would leave Amazon.com little choice but to end its relationships with Hawaii-based Associates. You are receiving this e-mail because our records indicate that you are an Amazon Associate and resident of Hawaii.
Please note that this is not an immediate termination notice and you are still a valued participant in the Associates Program. All referral fees earned on qualified traffic will continue to be paid as planned.
But because the new law is drafted to go into effect July 1st, we will have to terminate the participation of all Hawaii residents in the Amazon Associates program on or before that day. After the termination day, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com nor will we accept new applications for the Associates program from Hawaii residents."
Wait till they try to levy sales taxes on internet commerce. You can pretty much kiss internet sales goodbye. It'll happen. States have lost too much money during this depression and unlike the Feds they can't crank up a printing press to make up the difference.
Even with sales tax, added in, there's a lot of other reasons to shop online. Overall price, convenience (not everyone lives next to a mall)
Sure but any tax will have an effect. From people not being able to afford goods to buying less products due to the tax it will have an impact. You don't want to do things that might put businesses out of business especially during a depression. Plus the government is getting this money and they don't have a great track record of being very thrifty and wise in monetary matters. You'd be better off throwing that money down a pit than giving it to them.
I've never made a penny off of Amazon. Have you? How badly will it affect your income?
zeesh, pretty soon Amazon won't be willing to have any US affiliates.
It seems that I am safe for a little while in Massachusetts. But who knows.
That stinks...for two reasons. Hawaii for being greedy and Amazon for being stingy.
Of course taxes have an impact on consumption, but it won't kill internet shopping, just US affiliates living in certain states.
Normally you might be right, but with the economy going the way it is and people reducing their spending, anything that has an effect on shopping will be magnified much more than would be the case if we were not in a depression. In other words more firms will go out of business than would otherwise have been the case. So not only do you have higher unemployment, all the resources that went into building those businesses would be lost as well. You can find a new job, you can't get your money out of a bankruptcy. That money will be lost forever instead of being used to provide jobs for people. Besides, today they target affiliate marketing, tomorrow they'll target internet stores. Government taxation creeps, unless you burn it out like kudzu.
I just spent a few minutes googling "massachusetts internet tax law." I think we came very close to getting one this year. And it may well happen next year.
As of now Mass residents are required to report their online purchases and then pay the 5% sales tax when they file their income tax. (I don't think too many people do.)
So I'm sitting here rethinking my hubbing strategy, which is Amazon heavy.
Ah yes those lovely progressive people who live in the People's Republic of Massachusetts. So they're relying on their citizens to pay the tax. Ha! Good luck with that one. They'd need a totalitarian regime more intrusive than Orwell's to get it done and they'd still have little hackers finding exploits. It doesn't matter to me much. MA severely limits the types of self defense products a person can buy. I guess they feel more solidarity with their criminals than they do with their citizens.
How did we go from internet taxes to self-defense products?
Oh well I'm done in for the night. Nice chatting.
That's what I sell. MA has all sorts of laws about that kind of thing, so it doesn't matter to me what they do, since I don't live there, I can't sell there.
Well obviously governments have to get tax revenue from somewhere to pay for all the roads, schools etc.
But it's daft trying to grab it from the internet because the net has no boundaries.
Someone from the Uk can sell to someone in Hawaii as an Amazon affiliate, so Hawaii won't get to see the tax revenue, but Hawaii affiliates will see a drop in income (which means they are more likely to need the support of the Hawaiian state?)
Internet taxes will only work if there is negotiation at the World Trade Organisation to do this globally - and it doesn't look at all likely as most countries have decided it's not worth bothering.
Out of interest, why doesn't Hawaii put up property taxes? If I was running a govt that's what I'd do, because property always stays put!
Government tax all sales on the internet? Sure, they can try and aim at large companies but don't you think the people of the Republic of the Internet will try to prevent that? "No One Owns the Internet"
Bs. There's a large ring of millions that claim they do own the internet and they will prove it to anyone who opposes them.
I'm from MA too and I know you don't like our laws, Ledefensetech, trust me- we don't like the taxes ether. Somewhere in the book it says "No Taxation without Representation"...I would love to hear what the government projects on why they must tax sales of the whole internet, which seems like an imposable task to complete and enforce.
Hey, that's cool, I lived in Taxachusetts for a few years when my old man was in the Marines. He used to work with the reservists at Otis ANGB or Camp Edwards, depending on your branch of the service. I'm glad we lived on base and not out in the general public, things were a bit less expensive on base. The big problem with the People's Republic of Massachusetts is that the Progressives have gotten in there and taken over the government. I was wondering, do you have health insurance? I imagine that you do seeing as they made is mandatory. How are your premiums for health care out there? I can't seem to find too much information out on the Internet about it.
As for taxing the Internet, well that may be the catalyst needed to push for a new global reserve currency and/or new political unions. It would be a mistake, but when you have people who lust after money and power in office, that's what you get.
California is also considering such legislation. Very sorry you're getting caught up in this.
All NC folks have had their accounts canceled. We'll get what $ we've made sometime between now and Sept accounding to the notice I recieved. The story made our news over the weekend.
So, I am taking off my amazon capsules, or replacing all the products with my books (so maybe I'll get royalties at least;o)
I suppose when you think about it, states lose a lot of revenue with more people shopping online rather than in brick and mortar stores. Previously on NC income tax forms we could pay on the honor system, but guess that wasn't doing the trick.
Donna are you safe with ebay and google adsense at least. I haven't heard of them axing affiliates. I hope you get lots of royalties.
Thank you, Nellie. Actaully I have not bee nsuccessful in signing up with ebay. Google adsense is of course my main income maker. I should try the ebay thing again . . .
I read the latest news is that the Gov. of Hawaii is planning to veto the bill including this issue - leaving hope for amazon associates located there.
On today's news -
Looks like Gov. Shwarz.. from Cali. promised to veto any such bill as well. Nice to see some gov's standing up for AMs.
I don't know if anyone reads the Pepperjam blog, but Kris wrote an excellent post about the "Amazon tax". I hope states are watching, because these taxes only put undue stress on businesses which they cannot afford right now.
Here's a link to the blog post:
Amazon tax won't work to raise tax revenue.
Hey, Hawaii Hub Authors,
You're governor vetoed the tax bill and Amazon is now re-enrolling Hawaii residents.
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