JB> Far be it for a Democrat to see a dollar that they didn't
 JB> want to tax... The moving trucks continue to leave
 JB> Illinois...  This is after their recent massive income tax
 JB> increase...

 Since ineternet sales cut sales taxes in the state, and I
 believe you pushed the sales tax as the Fair tax, a replacement
 for the income tax, think about it. Or was that Ross Cassell?

 Either way, non-payment of tax on internet sales puts internet
 business in a better position than local stores. Since when
 should the government make policy that gives an advantage to one
 form over the other?

 ...

 JB> Illinois Governor Signs Amazon Internet Sales Tax Law
 JB> Mar. 10 2011 - 6:33 pm
 JB> By JANET NOVACK


 JB> After two-months of fence-sitting, Illinois Governor Pat
 JB> Quinn today signed controversial legislation requiring
 JB> Internet retailers like Amazon.com and Overstock.com to
 JB> collect Illinois’ 6.25% sales tax if they have affiliate
 JB> sellers in the state. House Bill 3659, the Mainstreet

 JB> mortar retailers, who supported it, and Illinois-based
 JB> Internet-only businesses, who warned that if Quinn didn’t
 JB> veto it some of them would flee the state. Had Quinn done

 ...

 JB> Chicago-based CouponCabin.com called the Governor’s
 JB> approval of the bill “deeply disappointing” and said he is
 JB> “actively exploring” moving his seven year- old business to
 JB> Indiana. Kluth, a long time resident of Chicago, had
 JB> previously threatened such a move, telling Forbes, “I can
 JB> see Indiana form the roof of our business.”

 And how many employees will lose their jobs? If he can see
 Indiana from the roof of his business then the answer should be
 zero.

 JB> But Quinn, a Democrat, described the law as necessary to
 JB> put the state’s “main street businesses” on “a level
 JB> playing field” with online retailers and to protect main
 JB> street jobs. In a statement issued by Quinn’s office, David

 Which happens to be true.

 ...

 JB> in 2008. While Amazon has been challenging (so far
 JB> unsuccessfully) the constitutionality of that law in court,
 JB> it has kept its New York affiliates and now collects New
 JB> York sales tax on purchases shipped to the Empire State.
 JB> (It also collects for shipments to its home state of
 JB> Washington, as well as North Dakota, Kansas, and Kentucky.)
 ...
 JB> addition to California, the states of Arizona, Connecticut,
 JB> Hawaii, Minnesota, Mississippi, and Vermont are all now
 JB> considering Amazon laws.

 IOW, as more states enact such laws either Amazon will collect
 the tax, or Amazon will have no affiliates.

 JB> As Forbes suggested here, Amazon’s days of sales tax
 JB> collection free selling may be numbered for another reason:
 JB> Amazon’s growing network of warehouse and fulfillment
 JB> centers. Last year, the Texas Comptroller sent Amazon a
 JB> bill for $269 million for four years of back sales taxes,
 JB> based on an Amazon warehouse there. Amazon insists the
 JB> warehouse doesn’t give it nexus. But last Month, it told
 JB> its Texas employees that it would close the warehouse,
 JB> throwing 110 of them out of work.

 Let's see. 110 workers, at $25K/yr, (not an unreasonable
 estimate for warehouse workers in Texas for an online retailer),
 equals about $2.75mill/yr. Over the 4 years, that's $11mill. Now
 $11mill against $269mill???? Hell, they can hire all 110 for a
 state run warehouse for online retailers just off the sales tax
 Amazon paid, with $250 mill profit. Well worth it.

 JB> Thursday 10 P.M.  update: According to Amazon spokeswoman
 JB> Mary Osako, the retailer has now sent an e-mail to its
 JB> thousands of Illinois associates stating Quinn’s signing of
 JB> the law  “compels” it to terminate them.  The message reads
 JB> in part:

 ...

 JB> Amazon’s e-mail also invites the Illinois associates to
 JB> apply for reinstatement should they relocate from the state.
 JB>  * Origin:  (1:226/600)

 Which may cost the state maybe a few hundred jobs, if they all
 leave. OTOH, any that are not on the border already will
 probably find it cheaper to run without Amazon.



BOB KLAHN bob.klahn@sev.org   http://home.toltbbs.com/bobklahn

... "His death is irrelevant, Jim." - McCoy of Borg
--- Via Silver Xpress V4.5/P [Reg]
 * Origin: Since 1991 And Were Still Here! DOCSPLACE.TZO.COM (1:123/140)