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    Revolt of the Amazon Kulaks

    Revolt of the Amazon Kulaks

    The Revolt of the Kulaks has come to California.

    Via Drudge, California’s attempt to tax internet sales has met with a reaction:

    Gov. Jerry Brown has signed into law California’s tax on Internet sales through affiliate advertising which will immediately cut small-business website revenue 20% to 30%, experts say.

    The bill, AB 28X, takes effect immediately. The state Board of Equalization says the tax will raise $200 million a year, but critics claim it will raise nothing because online retailers will end their affiliate programs rather than collect the tax.

    Amazon has already emailed its termination of its affiliate advertising program with 25,000 websites.

    This is why Obama will not see the trillion dollars in new taxes he wants, even if such legislation were passed.  People change their business and personal practices once taxes reach a tipping point.

    This why we can’t tax our way to reducing the deficit.  We can control spending, but we cannot control revenue because we cannot control people.


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    Mutnodjmet | July 1, 2011 at 9:33 am

    I live in California. Each and every time I purchase a non-food item (and sometimes a snack), I pay California nearly 10% — on top of my state income tax. I got very angry a month ago when I took a good look at my RiteAid receipt — $1 out of a $10 purchase (for materials my son was using on a school project) may not seem like a lot, but I swear it was the straw that broke the camel’s back. All this money is directed at state employee union members, who seem entitled, and redundant bureaucracies. I am buying only what is needed when it is needed — and looking to move to another state. As soon as either I or my husband locate employment in a redder, better state, we are out of here.

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