It may be displacing a local purchase... in a third, unrelated state. Only the affiliate lives in Connecticut, the purchaser may live in Colorado... or Czech R

It may be displacing a local purchase... in a third, unrelated state. Only the affiliate lives in Connecticut, the purchaser may live in Colorado... or Czech Republic, for that matter. I think you have the argument about capitalism backwards. Any time someone says "that's unfair, we should change the laws to help (inefficient business X) compete more effectively with (efficient business Y)", they are directly contradicting the idea of capitalism. Where the social good lies is sometimes hard to work out; but I'd guess in this case Connecticut residents would be better off with an efficient Amazon and the ability to become Amazon Affiliates than with the small amount of tax revenue that this legislation tries to capture.