Amazon Fights Back Against N.C. Tax Scheme

In response to a proposed tax plan likely to pass the N.C. Legislature in the next few days, Amazon is ending its affiliate program in North Carolina.

Over the past few weeks, Seattle-based Amazon has protested legislation in North Carolina and California that would require e-commerce companies to collect sales taxes if they have marketing affiliates – people who get a sales commission from links on their own Web sites – in those states. Hawaii and Connecticut are also weighing similar laws. Amazon says efforts to force it to collect taxes based on marketing affiliate relationships are “unconstitutional” and would backfire if Amazon were to sever ties with its advertising partners.

Bravo to Amazon for protesting North Carolina’s unconstitutional tax proposal. When will lawmakers realize that perverse, unfair, and unlawful tax collection schemes and economic legislation have unintended consequences that hurt more than they help? More here. Amazon’s letter is here.

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