Gov. Moonbeam doofs on California - again

It is amusing, but not in a good sense, to watch the antics of the current occupant of the Guv’s mansion. OK, so who gets screwed this week? Amazon Affiliates, c’mon down!

Yes, I know: I must first explain what an affiliate is. You have a web page or blog or webfront store that might get people to buy things. So, you put a link on your webpage, but the other side of the link is an Amazon product page. Whenever anyone clicks on the link and buys something, you get a 15% commission. Pretty neat deal, huh? In California, there are literally thousands of such affiliates, some of whom are charitables and non-profits. Problem: according to state tax law, such affiliates of an internet retailer counts as a physical presence in the state (beginning to see where this is going?).

Moonbeam and his cohorts just passed a law taxing internet sales, aimed mainly at that internet retailing powerhouse Amazon. The bad guys proceed to rub their hands together in glee, anticipating all the moola they are about to receive. Did no one think to review what happened in other states that attempted, without success, to do the same thing? You guessed it: rather than agree, Amazon did what it usually does in an attempt to save money for their customers: it stops all $$$ to the state’s affiliates and gets an exemption to the internet sales tax.

Was this a wise move? You be the judge.