Please Note:

This blog simply desires to share the truth, (and not just politically) and the truth is out there for those who seek it, we just blog about it, hence, Revelations of Truth!

Wednesday, July 6, 2011

Lose-Lose Proposition for California, thanks to the stupidity of Governor Jerry Brown!

Jerry Brown signed into law a tax on California internet sales (AB28X), which is estimated to cut small-business website revenue 20% to 30%, experts say.

Thank you Governor brown for more taxation without representation and without voter approval by the people!

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, which is EXACTLY what has happened! Amazon has simply cut off California affiliates!

I do not blame Amazon! Remember Amazon and other retailers do not pay the tax. You/we/consumers pay the tax. The retailer just collects it.

It is impractical to expect online retailers to collect sales taxes for 7500+ different taxing jurisdictions around the country. So they are only required to collect taxes where they have a physical presence.

CA just defined physical presence to include marketing affiliates who provide referrals (in exchange for a commission) to Amazon. Amazon has no other presence in CA.

So, to avoid tracking 100+ sales tax jurisdictions in CA, Amazon has terminated all of it’s CA affiliates. Amazon still will not collect sales taxes from Californians who buy from their site. But thousands of Californians who were Amazon affiliates have just lost that revenue stream.

Don't you get it Jerry Brown? Less income for the individual means less taxable income for the state!

Taxing internet shopping is just another way the California government taxes its residents to pay for its lavish spending. Why doesn't the government figure out ways to live within the taxes they already receive--which in California is already very high!! How about cutting their own ridiculous salaries and pensions??

How about eliminate so many needless government programs!
When the government shrinks the people prosper, where as, the bigger the government the smaller the citizen!

Even George Runner, A Board of Equalization Member, blasted Jerry Brown for signing the law. “Even as Governor Jerry Brown lifted his pen to sign this legislation, thousands of affiliates across California were losing their jobs. The so-called ‘Amazon tax’ is truly a lose-lose proposition for California. Not only won’t we see the promised revenues, we’ll actually lose income tax revenue as affiliates move to other states.”

Bottom line, the state gets ZERO new taxes while Over 25,000 affiliates have lost an income stream! That is real money that WILL NOT be coming INTO California!

SO what WAS the point of this stupid bill?

Stupid is as Stupid does!

Here is the email I got from Amazon:

Hi Marisela,

For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, the budget signed by Governor Brown contains a sales tax provision that compels us to terminate this program for California-based participants effective immediately. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by California-based affiliates like you - even if those retailers have no physical presence in the state.

We opposed this new tax law because it is unconstitutional and counterproductive. It was supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.

As a result of the new law, contracts with all California residents participating in the Amazon Associates Program will be terminated today, June 28, 2011. Those California residents will no longer receive advertising fees for sales referred to,, MYHABIT.COM or Please be assured that all qualifying advertising fees earned on or before today, June 28, 2011, will be processed and paid in full in accordance with the regular payment schedule.

You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after June 28, 2011, please contact us for reinstatement into the Amazon Associates Program.

To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect their ability to purchase from

We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents.

The Amazon Associates Team