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It isn't that e-commerce is weak at all. The playing field is skewed in e-commerce's favor because it is often offering a better experience and price. A lot of
by kposehn 15y ago
It isn't that e-commerce is weak at all. The playing field is skewed in e-commerce's favor because it is often offering a better experience and price.
A lot of mom&pop retailers have figured this out and started selling online. They sell on Amazon and eBay and reach the entire world. Many successful major online retailers started this way.
Also, it is hard to not be upset when you go to the effort I have; I went to Sacramento and met with the politicians. I tried to change the course of this legislation. I stood up for others to try and keep this from happening. I can see the damage this is doing and how it won't gain the state any revenue at all.
I don't blame Amazon and the other retailers for what they have to do. The are faced with a decision where they can be on the hook for something that is specifically designed to muck with them. The legislation forces them to do this, not the other way around. There is a definite fiscal incentive for them to terminate affiliates; and also one for affiliate to leave the state.
In the end, tax revenue is lost by the state and the bill just forces businesses out :-/
- scarmig 15y agoThis ignores the critique that the "better experience and price" online retail offers comes about because Amazon doesn't have to pay sales tax. This makes everything Amazon sells 10% cheaper in California, which means that even a totally equivalent experience offered by WalMart would be seriously disadvantaged. That said, this is a very sub-optimal solution--it's lose-lose-lose. It comes down to the fact, though, that one of Amazon's key competitive advantages is being able to avoid sales tax, and no solution which is (a) genuinely achievable and (b) levels the playing field will be supported by Amazon.
- kposehn 15y agoI agree, it is a sub-optimal solution. However, Amazon does support the streamlined sales tax which would achieve both points. There needs to be some federal solution to make reporting easier and the streamline seems to be the best way put forth so far.