Oh man, was I ever excited when I heard that there may be a new internet tax so that everyone will have to pay x% tax on their purchases online! I haven’t heard better news since I found out my property tax went up again and the value of my house went down again! Woo-hoo! Get excited people!
This is a crucial time in US history; we are on the verge of eliminating the jobs of thousands of people that earn their living by driving sales to large businesses, all in the name of getting more tax money out of the pockets of the average citizen.
What the ‘affiliate marketer’ does is to get people from all over to buy a digital camera for example from a certain business, and they make a small amount on each sale. It’s pretty straight forward; they are a sales person for the large business that gets the sale. It’s like a sales person standing in that store, except that it’s all on your computer and that sales person is the person writing that blog you’re reading so you don’t even realize they are selling you something. (Well, to some degree anyway.)
We ourselves have just started to offer buy Sony digital camera online on our site as an Amazon affiliate. Good thing I'm living in MN and not NC!
What do you mean about thousands of people losing their jobs and being out of work? I thought we would just have to start paying State tax on purchases on Amazon, why would they be out of work?
Amazon has taken the preemptive step of canceling ALL affiliate programs in any State that says they will collect this sales tax. You all probably know about North Carolina already; if you sold for Amazon and live in NC, you just lost your job. And the law isn't even passed yet!
Somebody get NC on the phone for me please? … Hello? NC? Err… I think maybe do you see now how much money Amazon is going to give you with this new tax? Yeah, it looks like it will be about 7% on ZERO DOLLARS so really good work, keep it up!
How many people just took a severe pay cut and will have less money to spend on local businesses everywhere in NC? What if they can no longer pay their mortgage, now we have even more houses on the flooded market that nobody can buy. What if they were a small to mid sized company that specialized in affiliate marketing? Now they will have to lay off employees or move out of state!
One marketer I know saw a 40% drop in income due to losing his affiliate account. 40% of his income gone! So what can you do?
- Create an overseas company? I don't think so; do you want to deal with the problems of sending money overseas and back and then have to face the IRS?
- Uproot your family, sell your home and move out of state? Simply not a real option.
- Create a company out of state and fake it? Yeah… have fun playing with the IRS!
I’m not going to try and suggest solutions to work around the problem if you live in NC. I don't claim to be a lawyer nor am I familiar with US Tax Law so I don't want to say something that's wrong and end up in a lot of trouble! Not something I’m interested in doing to be sure.
You will find a solution, one always exists. If you are serious about affiliate marketing in NC and make your income from it, then consult a lawyer. Talk with specialists, somebody who knows tax law forwards and backwards as well as someone who knows about the business end of things and I’m sure you can figure something out together. There are already States that have declared that they will not collect this tax and they will be safe for you to conduct your place of business.
You do not want to play around with trying to cheat or fool the IRS. Don’t take chances with your future and your freedom and trade them both in for a jail cell.
North Carolina… What can I say? You just wanted to squeeze every last drop of money out of the people of your state and you didn't bother to think about how Amazon would react. Did you even bother to ASK THEM what they would do?
I guess you now know what they would do. What will you do about this? As for me, I’m going back to my digital camera repair work, and hopefully this situation will sort itself out soon! Unfortunately when it comes to Canon digital camera repair it’s difficult to inform people that affordable repair options are out there!
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i have just signed up with the amazon affiliate program and i am still not earning a good deal of cash from them.-;.
Comment by Logan Baker — May 18, 2010 @ 6:36 am