Amazon Tax To Cost California Revenue

By Douglas V. Gibbs

New taxes, or ridiculous increases in taxes always results in an eventual drop in revenue, and lowering taxes ultimately increases revenue. The Amazon tax is a great example. The State of California, in dire straights because of its outrageous spending habit, has decided to create a tax in the hopes of generating $200 million. It will end up costing the state $100 million.

California's new tax is an online retailers sales tax. Online retailers will instead stop doing business directly with Californians, and use third parties to get the products into California without the tax.

The move, according to news services, is also in violation of a Supreme Court decision that prohibits a state from forcing businesses to collect sales taxes unless the business has a physical presence, such as a store, in that state.

-- Political Pistachio Conservative News and Commentary

Amazon to cut off California-based Web affiliates - Associated Press