Sunday, February 27, 2011

Illinois legislation impacting Amazon Associates Program? | The Whole Bird Politics

Wow!!!
Who knew that Amazon is an authority on what is unconstitutional ?

Illinois legislation impacting Amazon Associates Program? | The Whole Bird Politics

Greetings from the Amazon Associates Program:

We regret to inform you that the Illinois state legislature has passed
an unconstitutional tax collection scheme that,
if signed by Governor Quinn, would leave Amazon.com little choice
but to end its relationships with Illinois-based Associates.

I am very surprised that a corporation is allowed to stir the pot in this way. My
understanding was that it is constitutional for the individual States to levy taxes
to meet their needs.

I'm also surprised that Amazon affiliates aren't routinely taxed on their income from
sales referrals. Shouldn't there be some kind of tax forms... 1099s??

As I see it, any income paid to affiliates is either taken out of Amazon's cut on sales,
or it is taken out of the publishers' and authors' cut. Since the author does not receive
that amount, the author isn't paying taxes on it.

Someone ought to be paying taxes. I'm with Illinois on this. I think Michigan and Kentucky
and Florida ought to be taxing Amazon affiliates' income, too.

1 comment:

Beth Caudill said...

Amazon dropped every single North Carolina affiliate over a year ago because of a tax on the income. Personally, I reported the income just as I report my royalties.

I guess they don't want the tax liabilities of doing business. I do have to say, I'm pissed at Amazon not the state for passing the law.