Repercussions - Amazon v/s the State of Illinois

From the Chicago Tribune:

Web businesses say they'll flee Illinois if sales tax is OK'd
Some Illinois-based Web businesses were furious Thursday at a legislative plan that would require online retailers, such as Amazon.com and Overstock.com, to collect a 6.25 percent state tax if they have commissioned affiliates in the state.

That puts at risk huge revenue streams for such Illinois-based Web sites as FatWallet.com, CouponCabin.com and BradsDeals.com, which receive much of their commissions from sending customers to major online retailers. Their commissions are at risk because large retailers have shown in the past that they will sever business relationships with affiliates like those to avoid collecting state sales tax, called a use tax in Illinois, on products they sell.

The bill, passed Thursday afternoon, needs approval from Gov. Pat Quinn.

"I feel like I've been completely flipped the bird," said Tim Storm, chief executive of FatWallet, based in Rockton, near Rockford. "Essentially, 30 to 40 percent of our revenue gets shut off instantaneously."

FatWallet officials were busy Thursday scouting ways to leave Illinois, Storm said.

"The reality is that as a business owner with 52 employees, we're not going to just get shut down because of a law Illinois passes. Our customers don't care whether we're in the state of Illinois," he said.

Brad Wilson, founder of BradsDeals, in Chicago, said about half his revenue would be in jeopardy, along with 20 jobs at his company.

"We don't have much choice. If this is going to stick, we literally can't physically be in Illinois," Wilson said. "My wife is from Cleveland and would be thrilled if we moved back there. That's the kind of thing that's going through my head."

Though consumers are technically supposed to pay sales tax on Internet purchases via their state income tax forms, few do. That amounts to a built-in discount for consumers and a competitive advantage for online retailers who sell to them.

Currently, only online retailers that have a physical location in Illinois - a retail store, headquarters or warehouse, for example - have to collect state tax at checkout. The new law, which would take effect July 1, would define online retailers as having a physical location in Illinois if they have affiliates in the state.

Hey Governor -- if you want to make Illinois a small-business friendly state why don't you start cutting taxes to them and cut the State budget. It is not rocket science...

May 2016

Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31        

Environment and Climate
AccuWeather
Cliff Mass Weather Blog
Climate Audit
Climate Depot
Green Trust
ICECAP
Jennifer Marohasy
MetaEfficient
Planet Gore
Science and Public Policy Institute
Solar Cycle 24
Space Weather
Space Weather - Canada
the Air Vent
Tom Nelson
Watts Up With That?


Science and Medicine
Derek Lowe
Junk Science
Life in the Fast Lane
Luboš Motl
Medgadget
New Scientist
Next Big Future
PhysOrg.com
Ptak Science Books
Science Blog


Geek Stuff
Ars Technica
Boing Boing
Don Lancaster's Guru's Lair
Evil Mad Scientist Laboratories
FAIL Blog
Hack a Day
Kevin Kelly - Cool Tools
Neatorama
Slashdot: News for nerds
The Register
The Daily WTF
TYWKIWDBI


Comics
Achewood
The Argyle Sweater
Chip Bok
Broadside Cartoons
Day by Day
Dilbert
Medium Large
Michael Ramirez
Prickly City
Tundra
User Friendly
Vexarr
What The Duck
Wondermark
xkcd


NO WAI! WTF?¿?¿
Awkward Family Photos
Cake Wrecks
Not Always Right
Sober in a Nightclub
You Drive What?


Business and Economics
The Austrian Economists
Carpe Diem
Coyote Blog


Photography and Art
Digital Photography Review
DIYPhotography
James Gurney
Joe McNally's Blog
PetaPixel
photo.net
Shorpy
Strobist
The Online Photographer


Blogrolling
A Western Heart
AMCGLTD.COM
American Digest
The AnarchAngel
Anti-Idiotarian Rottweiler
Babalu Blog
Belmont Club
Bayou Renaissance Man
Classical Values
Cobb
Cold Fury
David Limbaugh
Defense Technology
Doug Ross @ Journal
Grouchy Old Cripple
Instapundit
iowahawk
Irons in the Fire
James Lileks
Lowering the Bar
Maggie's Farm
Marginal Revolution
Michael J. Totten
Mostly Cajun
Neanderpundit
neo-neocon
Power Line
ProfessorBainbridge.com
Questions and Observations
Rachel Lucas
Roger L. Simon
Samizdata.net
Sense of Events
Sound Politics
The Strata-Sphere
The Smallest Minority
The Volokh Conspiracy
Tim Blair
Velociworld
Weasel Zippers
WILLisms.com
Wizbang


Gone but not Forgotten...
A Coyote at the Dog Show
Bad Eagle
Steven DenBeste
democrats give conservatives indigestion
Allah
BigPictureSmallOffice
Cox and Forkum
The Diplomad
Priorities & Frivolities
Gut Rumbles
Mean Mr. Mustard 2.0
MegaPundit
Masamune
Neptunus Lex
Other Side of Kim
Publicola
Ramblings' Journal
Sgt. Stryker
shining full plate and a good broadsword
A Physicist's Perspective
The Daily Demarche
Wayne's Online Newsletter

About this Entry

This page contains a single entry by DaveH published on January 7, 2011 5:43 PM.

That pesky Bush guy was the previous entry in this blog.

If only is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

Monthly Archives

Pages

OpenID accepted here Learn more about OpenID
Powered by Movable Type 5.2.9