I have been an Amazon Associate for about 5 years enabling me to potentially benefiting from the sale of the books listed on left side this page and any future books that I might write and sell on Amazon. However, I have been notified that my Amazon Associates Contract will be cancelled when Governor Brown signs into law a bill that specifically imposes the collection of taxes from consumers on sales by online retailers, which he did today.
Amazon writes in my termination notice:
We oppose this bill because it is unconstitutional and counterproductive. It is 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, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. [Note bill was signed today.]
While my benefits have been very small, it is estimated that there are about 10,000 California based Associates that sell products through Amazon. Many are home base business that use Amazon’s marketing and distribution power to reach billions of customer around the globe.
The cancelation of these Associate Contracts will essentially shut down these business and potentially return 10,000 more people to the CA unemployment rolls. How stupid can our legislators be to kill off 10,000 entrepreneurial business for the promise of a few dollars in tax revenue.
Exit Question: Were you, or someone you know, a California Amazon Associate?