The horrendous consequences from the just-passed CA "Amazon" Internet sales tax bill has stuck with frightening swiftness. It's not just Amazon, but HUNDREDS of national Internet retail sites that are in a single day terminating their relationships with thousands and thousands of small CA businesses.
Read this article linked below, and then READ THE COMMENTS from devastated CA companies being destroyed just HOURS after the passage of this law.
Sample comment from a small business owner:
By the time I gave up for the night, I was down by 94 merchants, one of which was Amazon. I don’t blame Amazon or any of my out-of-state merchants for the decision to distance themselves from us here in California.
I’ve said this elsewhere and I’ll say it here: These tax nexus laws make as much sense as removing a car engine to improve gas mileage. Yes, the mileage will be vastly improved (on paper) but you’re not going to get very far very fast.
I want my engine back.
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The irony is that, as a result, the Internet companies will STILL not be collecting CA sales tax, as they terminated their relationship with all CA companies. So no meaningful increase in tax revenue, thousands of small CA businesses damaged or destroyed, and CA unemployment will rise even further. A government trifecta.
It makes me sick.
http://www.calwatchdog.com/2011/06/30/brown-signs-punitive-amazon-tax/comment-page-1/#comment-9317


Salon.com
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