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The problem is that it doesn't actually work out that way. The proposed bill is only expanding the requirements to cover companies with "sister companies" in Ca
by thaumaturgy 16y ago
The problem is that it doesn't actually work out that way. The proposed bill is only expanding the requirements to cover companies with "sister companies" in California -- i.e., affiliates.
We've already seen this play out a few times. We know exactly what happens if the bill passes: Amazon cancels all of its affiliate contracts in California. California residents still do not pay taxes on Amazon purchases, Amazon no longer has any presence at all in the state, the state makes no extra money, and the competitive field is still left unchanged for local businesses.
It's a net loss for California.
- deleted 16y ago[deleted]
- sbalea 16y agoIn addition, businesses that depend on affiliate relationships close down or move shop, and California loses some existing tax revenue.