Amazon Offers CA Bribe to Hold Online Sales Tax
According to reports, Amazon has made an overture to the State of California to hire as much as 7,000 new employees in California, if the State will stop the enforcement of the online “affiliate” sales tax for another two years.
This possible offer happened supposedly after a confidential meeting between Amazon, members of the California Retailers association and some State Senate Republicans.
As part of the deal, Amazon had also offered to stop their current ballot initiative to repeal the recently signed Affiliate Nexus Tax.
Most insiders believe that the deal is unlikely to happen, as Senate Democrats are completely against any sort of compromise, needing the revenue from an online affiliate sales tax immediately to close as much as a $10-billlion dollar shortfall.
Some have pointed out that even if accepted, the offer is just a stalling technical before the inevitable Supreme Court battle that will occur over similar affiliate sales tax schemes in other States. Most Constitutional experts believe that these so-called “affiliate taxes” are already illegal under the SCOTUS decision Quill Corporation vs. North Dakota.
With Amazon’s help, the Performance Marketing Association, a trade organization representing affiliate-based companies has already filed a lawsuit against the State of Illinois.