highnote
06-10-2011, 10:10 AM
Got an email from Amazon today saying they are terminating my affiliate contract with them because of a new tax imposed on them by the state of Connecticut.
This is disappointing. I'm not a big fan of Amazon and I've made zero money from their affiliate program fo several years, but if I decided to list their books on my website like I used to then I would be very disappointed that I could not be an affiliate.
Whoever thinks that higher taxes do not hurt business would have a hard time convincing me. Plus, there is a ripple effect. If businesses generate less income because of a tax then less money flows through the economy. By definition "capital" must flow. If it is not flowing then it is not capital. Just like gold is not capital when it is stored in a vault. It is a store of value that does not generate revenue. Capital only generates revenue when it's flowing.
An increase in taxes decreases the flow of capital in the long run. In the short turn, governments may use it to pay employees or stifle the competition for certain segments of the economy, but this does not increase the overall flow of capital.
Here is the email:
Hello,
For well over a decade, the Amazon Associates Program has worked with thousands of Connecticut residents. Unfortunately, the budget signed by Governor Malloy contains a sales tax provision that compels us to terminate this program for Connecticut-based participants effective immediately. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by Connecticut-based affiliates like you - even if those retailers have no physical presence in the state.
We opposed this new tax law because it is unconstitutional and counterproductive. It was supported by big-box retailers, most of which are based outside Connecticut, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.
As a result of the new law, contracts with all Connecticut residents participating in the Amazon Associates Program will be terminated today, June 10, 2011. Those Connecticut residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before today, June 10, 2011, will be processed and paid in full in accordance with the regular payment schedule.
You are receiving this email because our records indicate that you are a resident of Connecticut. If you are not currently a resident of Connecticut, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after June 10, 2011, please contact us for reinstatement into the Amazon Associates Program.
To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to Connecticut residents and will not affect their ability to purchase from www.amazon.com.
We have enjoyed working with you and other Connecticut-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to Connecticut residents.
Regards,
The Amazon Associates Team
This is disappointing. I'm not a big fan of Amazon and I've made zero money from their affiliate program fo several years, but if I decided to list their books on my website like I used to then I would be very disappointed that I could not be an affiliate.
Whoever thinks that higher taxes do not hurt business would have a hard time convincing me. Plus, there is a ripple effect. If businesses generate less income because of a tax then less money flows through the economy. By definition "capital" must flow. If it is not flowing then it is not capital. Just like gold is not capital when it is stored in a vault. It is a store of value that does not generate revenue. Capital only generates revenue when it's flowing.
An increase in taxes decreases the flow of capital in the long run. In the short turn, governments may use it to pay employees or stifle the competition for certain segments of the economy, but this does not increase the overall flow of capital.
Here is the email:
Hello,
For well over a decade, the Amazon Associates Program has worked with thousands of Connecticut residents. Unfortunately, the budget signed by Governor Malloy contains a sales tax provision that compels us to terminate this program for Connecticut-based participants effective immediately. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by Connecticut-based affiliates like you - even if those retailers have no physical presence in the state.
We opposed this new tax law because it is unconstitutional and counterproductive. It was supported by big-box retailers, most of which are based outside Connecticut, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.
As a result of the new law, contracts with all Connecticut residents participating in the Amazon Associates Program will be terminated today, June 10, 2011. Those Connecticut residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before today, June 10, 2011, will be processed and paid in full in accordance with the regular payment schedule.
You are receiving this email because our records indicate that you are a resident of Connecticut. If you are not currently a resident of Connecticut, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after June 10, 2011, please contact us for reinstatement into the Amazon Associates Program.
To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to Connecticut residents and will not affect their ability to purchase from www.amazon.com.
We have enjoyed working with you and other Connecticut-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to Connecticut residents.
Regards,
The Amazon Associates Team