Sign up for 5280's weekly e-newsletters. Want the latest restaurant scoop? The latest happenings around town? Access to exclusive events and deals just for 5280 readers? The Twitterverse has been wild with posts about Amazon’s decision to dump its Colorado-based associates because of a new bill that imposes an online sales tax.
The reactions are predictably negative, notes State Bill Colorado, with posters complaining about Ritter and Democrats who backed the bill. But Ritter has some allies, too, including the left-leaning ProgressNow Colorado, which is calling on state residents to boycott Amazon.
“It’s true that online sales have enjoyed preferential tax benefits in many areas, giving them a needed competitive advantage during the industry’s early years,” the group’s blog states. “But today, the logic of that approach has been turned on its head: Online sales are proliferating while Main Street goes out of business.”
Carol Hedges, senior policy analyst for the Colorado Fiscal Policy Institute, also points the finger of blame at Amazon, not Ritter, in a column for The Huffington Post. She writes: “Amazon is trying to bully Colorado to keep the state from collecting the sales tax it’s due. Are we going to succumb to Amazon’s pressure and forget about the sales tax? Or can we convince Amazon to obey the law?”
The Denver Business Journal’s Greg Avery is skeptical, reporting that online gift retailer Hammacher Schlemmer is also cutting off its local affiliates and that it’s “unlikely” the state legislature will budge on the tax.
Posted 3/10/2010 at 1:00 pm by Michael de Yoanna
Business, Economy, Panorama, Politics :: Permalink :: Comments (5)
The Left’s notion that Amazon is the bully here is worse than laughable, it’s vicious and perverse. They can’t even pretend to be on moral high ground here.
We are talking about taxation: legalized force used to plunder and redistribute. True to form, the Left is simply mad about the sacrificial animal objecting to its own slaughter.
Bravo to Amazon!
What is laughable is the thought that Amazon deserves any accolades for viciously and perversely firing 3000 Coloradoans from their affiliates program for no reason. They did not avoid the law. They still have to pay tax like the rest of the local businesses in Colorado.
Amazon threw a corporate temper-tantrum when they didn’t get their way and I appreciate that the Colorado legislature didn’t bow down to Amazon’s hostage attempts.
I agree firmly with Jeff Montgomery. The Colorado law is vicious and despicable, as are the gremlins who are attacking Amazon for the “crime” of defending itself against an improper and unjust law. Any blame for the loss of business to Amazon’s former affiliates rests squarely on the shoulders of the Colorado legislators.
Amazon will be getting substantially *more* of my business from now in appreciation of their moral courage on this issue. Bravo to them!
I’m a Colorado Amazon Associate sickened by this whole fiasco with the cancellation of the accounts of Colorado Associates. But contrary to the claims of many on the left, Amazon is NOT to blame.
The Colorado government — our legislators and governor — created this mess by its imposition of an “Amazon Tax” with HB 1193. Given its Colorado-based affiliates, that law would have crippled Amazon with an onerous and expensive confusion of red tape, plus a crazy patchwork of local taxes. The only way for Amazon to extricate itself from that nightmare was to terminate the Affiliate Program.
I’ve posted about it to my blog:
http://www.dianahsieh.com/blog/2010/03/colorado-screws-amazon-and-its.shtml
And Ari Armstrong has a long post here, with some excellent analysis of the law:
http://blog.ariarmstrong.com/2010/03/stop-amazon-tax.html
I’ve also created a super-quick web site. The “Amazon Tax” must be repealed!
http://www.RepealTheAmazonTax.com/
If you want to help pressure the Colorado legislature to repeal this awful law, please join the low-volume e-mail list, NoAmazonTax:
http://groups.google.com/group/noamazontax
Please spread the word!
– DMH
When I first got the letter from Amazon, I never suspected that this would turn into another tired right vs. left argument. I wish we could just look at the relevant facts.
The state passed a law that is being pilloried for the one thing it didn’t do, namely single out affiliate programs. It may be a bad law, but if so it’s a bad law that applies equally to companies whether or not they have an affiliate program.
Amazon reacted to that law by firing their affiliates, which has no effect on their liability under this law, but which really hurts a bunch of innocent bystanders.
To paraphrase the bard, “A pox on both their houses.”