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Amazon will end affiliate program in California if new law passes

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Re: Amazon will end affiliate program in California if new law passes

#141
post #140

Earlier quoted context omitted.

So Amazon has physical buildings in Texas, and Amazon disagrees with that state's position that they have a physical presence in Texas. Only a lawyer could argue for such a twisted interpretation of reality with a straight face.

Amazon owns a company that has physical buildings in Texas, and disagrees as to whether that constitutes a tax nexus or not. Pretty easy to argue with a straight face! Tax law is a matter of technicality, not "does it seem about right".

It's a warehouse full of books. People in Texas order books on Amazon's website, and they ship from the warehouse in Texas to people in Texas.

So it's a store, but not a store. Boggle.

Re: Amazon will end affiliate program in California if new law passes

#142
post #122

Earlier quoted context omitted.

With your legal address in Wyoming wouldn't you need a personal address to which Amazon would need to send correspondence? Or if you open a bank account for this legal enttity, wouldn't the bank want an address they can actually correspond to?

That is why you have that legal address. That is where all correspondence for the business is sent. This is called a statutory agent.

all correspondence? Not just legal correspondence?

Re: Amazon will end affiliate program in California if new law passes

#143
post #135
post #35

Earlier quoted context omitted.

Yup. Politicians and governments are, by and large, oblivious to the fact that laws induce behavioral changes. Like extending unemployment benefits to 99 weeks, then somehow being surprised when the rate increases of people staying on unemployment rather than finding jobs. Or creating a tax credit for low-income families who have children, then being surprised when the low-income birth rate increases. In the politici…

> extending unemployment benefits to 99 weeks ... people staying on unemployment rather than finding jobs > tax credit for low-income families who have children ... low-income birth rate increases Citations please

http://cei.org/news-releases/extending-unemployment-benefits...

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=428343#

http://youngilkim.webs.com/Kim_2009.pdf

https://editorialexpress.com/cgi-bin/conference/download.cgi...

Re: Amazon will end affiliate program in California if new law passes

#144

Earlier quoted context omitted.

But are they really looking out for themselves by doing so? A captain that helps sink the ship he's on (and keeps him from drowning) is not "looking out for #1" long-term.

He is if he has a dinghy no one else knows about.

The problem with this is that there is no such dinghy in real life. Immigration is hard (try it sometime), and there's no guarantee that there will be anywhere better to go.

Re: Amazon will end affiliate program in California if new law passes

#145
post #79

Earlier quoted context omitted.

> Yup. Politicians and governments are, by and large, oblivious to the fact that laws induce behavioral changes. Come on. Politicians are some of the smartest people in the society. Do you really think they are oblivious or do you think they're just looking out for #1?

> Politicians are some of the smartest people in the society. [citation needed] Not that I necessarily disagree, mind you; nor do I want to drag the whole social vs. whatever we call it now intelligence.

I'd say it takes a certain degree of smarts to be able to manipulate people as well as politicians do!

Re: Amazon will end affiliate program in California if new law passes

#146
post #118
post #79

Earlier quoted context omitted.

> Yup. Politicians and governments are, by and large, oblivious to the fact that laws induce behavioral changes. Come on. Politicians are some of the smartest people in the society. Do you really think they are oblivious or do you think they're just looking out for #1?

The closest answer would be willful obliviousness. Like how voting for war funding means borrowing the money from sometime in the future. Politicians know these consequences on some level, but willfully just push them out of consideration. Whatever politicians pushed this in California were counting up the tax revenue that would be collected from Amazon. They couldn't have truly been ignorant that Amazon would pull o…

I'm trying to understand how anyone votes for these people.

Re: Amazon will end affiliate program in California if new law passes

#147

Earlier quoted context omitted.

Texas is trying to go after Amazon shell companies; I'm not sure if California has tried that route. In Texas, there are two companies involved: Amazon.com.kydc, Inc. is a wholly owned subsidiary of Amazon.com, Inc. The sole business of the former is to operate physical facilities, some of which are in Texas, and which provide warehousing and shipment of books for the latter. Texas argues that this constitutes Amazon…

So Amazon has physical buildings in Texas, and Amazon disagrees with that state's position that they have a physical presence in Texas. Only a lawyer could argue for such a twisted interpretation of reality with a straight face.

Amazon doesn't have buildings in Texas. A subsidiary company does. That company is required to pay taxes in Texas. Amazon however, by not having a presence there is not required to pay taxes. This is old hat and a tactic used by almost every successful company in the world for at least 150 years.

In the long run it is far more beneficial for consumers and corporations. The only ones that lose out are the governments (the citizenry don't lose out by proxy because any potential revenue would be spent in non-beneficial ways regardless).

Re: Amazon will end affiliate program in California if new law passes

#148
post #140

Earlier quoted context omitted.

Amazon owns a company that has physical buildings in Texas, and disagrees as to whether that constitutes a tax nexus or not. Pretty easy to argue with a straight face! Tax law is a matter of technicality, not "does it seem about right".

It's a warehouse full of books. People in Texas order books on Amazon's website, and they ship from the warehouse in Texas to people in Texas. So it's a store, but not a store. Boggle.

[deleted]

Re: Amazon will end affiliate program in California if new law passes

#149
post #11

Some important background on this. At issue here is sales tax. By state law, the tax is owed by the citizens to the state no matter where they make the purchase. To make enforcement easier, the tax is supposed to be collected by businesses. In theory the tax is owed regardless, but as a practical matter when businesses do not collect the tax, customers don't volunteer the information and the state loses revenue. This…

unfortunately, Amazon didn't have the balls to fight New York sales tax. Too many large, high-profile affiliates in NYC, I guess.

Re: Amazon will end affiliate program in California if new law passes

#150
post #133

Earlier quoted context omitted.

Everyone /is/ operating under the same tax constraints. The difference is, your local retailers aren't selling their products out of state like Amazon.

So you're saying that the tax system favors shipping things across states by design? It's not just an accident that fell out of the tax code? Can you explain the benefits? Why would we want to tax local goods and not goods that are shipped across state boundaries?

Because the state is not allowed to. The items are still being entirely taxed, people are just dishonest when they file their taxes.
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