Crush Liberalism

Liberalism: Why think when you can “feel”?

California: Hmm, it seems our “Amazon tax” is pushing businesses out of the state by the droves!

Who knew?  I mean, besides all people who aren’t functional economic illiterates (which disqualifies California), who could have possibly seen this coming?

California recently instituted as part of its budget solution an “Amazon Tax” aimed at forcing out-of-state, online retailers with no physical presence in the Golden State to collect and remit sales tax in respect of goods sold to Californians where the retailer in question advertises, or maintains an “affiliate” referral relationship, with websites based within state lines.

How’s that working, Cali?

Prior to passage of the bill obligating collection and remittance in such circumstances, prominent online retailers including Amazon.com and Overstock.com had threatened to terminate relationships with affiliates, if the legislation became law.  Now that it has, and affiliate relationships are being severed, something critics of the legislation say was entirely foreseeable is occurring: Online businesses and entrepreneurs are leaving the state, thus risking an actual reduction, as opposed to marginal increase, in California’s tax revenue.

Backers of the legislation seemed to believe that affiliates would be happy to work with other retailers who also operate affiliate programs, or that online retailers targeted by the law would not end affiliate relationships and the threat was idle.

In neither case do those assumptions now seem correct.

Cali:  Man, our economy sucks!  It continues to suck!  Jobs evaporating, businesses moving, real estate collapsing, public union pensions pushing us to the precipice of bankruptcy…what can we do to stop this?

Normal America:  Well, for starters, how about stop putting Democrats in charge every stinking election cycle?

Cali:  That’s just crazy talk.

Florida passed a series of tax increases in the late 1980′s, when it had a Democratic legislature. One of them was to tax entry fees on freshwater fishing tournaments, such as those held by Bass Anglers Sportsman Society. BASS had tournaments every year in Florida, and those tourneys always generated plenty of tax revenue to cities and the state in the form of hotels, restaurants, stores, gas stations, etc. Taxing entry fees (which ranged from $500 – $1500) was a bit steep, especially since the fisherman were already spending a pantload of money. The libs refused to back down, and BASS pulled back on Florida tournaments. The state lost a ton of money, losing dollars because they were trying to collect dimes.

The GOP revolution of 1994 got people who understood how business and economics work into office. In 1997, the new budget repealed the stupid tax, and in 1998, BASS returned to Florida for tournaments. They even moved their headquarters to Celebration, FL, and brought about 200 jobs with them.  Tax revenues increased as a result.

Liberals are married stubbornly to static tax analysis, the belief that taxing activity results in NO CHANGE WHATSOEVER to productive behavior.  It’s quite simple, really: If you want less of an activity, tax it more.  Businesses and wealthy individuals are intelligent enough to look out for their bottom lines, and if CA won’t help them with their bottom line, states like TX and FL are more than happy to help.

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August 16, 2011 - Posted by | big government, California, economic ignorance

5 Comments »

  1. Great post. Welcome to my world. If you look at a red/blue map of Calif, the majority of the state is red (including where I live)… but LA & SF, which has the population base, is blue. They control the state. And I don’t see it changing soon. I have given up on the North/SF area. There is nothing that will ever change them up there, and unfortunately it is starting to creep down the coast to my County. LA, that can be different, but I am not holding my breath. San Diego is totally different than LA & SF. San Diego elects people like Duncan Hunter to congress. California is an example of one party controlling everything, for decades. Not a pretty picture. I’m a native. Love my state. We have everything. We should be the #1 state in all things good. I live in one of the most beautiful places on the planet. We have the best weather, natural resources, hard working people, but our government (the voters) are infected with liberal brain damage. It is depressing to watch what is happening. I have no idea how far it will go. Pray for us.

    Comment by Donna, Los Osos, CA | August 16, 2011

  2. I agree 100%, Donna. I mean, the songs from decades past were about “California Dreamin'” for a reason. With the weather, environment, scenery, etc., the state should be an economy all on its own. Well, it actually IS an economy all on its own, just not in a good way.

    If Cali were a conservative state (or at least not hopelessly leftist), I most certainly would consider moving there in a heartbeat. But with an expanding welfare state, hostility to normal America, hostility to businesses, crushing taxes, and economic illiteracy destroying the state, there’s no way I can see the Once-Golden State ever returning to its former esteemed position as object of envy.

    Comment by crushliberalism | August 16, 2011

  3. We’re fruity and nutty here and turning red would take away our fruitiness and nuttiness, crush. 😉

    Comment by Spinny Liberal | August 17, 2011

  4. True, Spinny. It would take away your impending insolvency, too. 😉

    Comment by crushliberalism | August 17, 2011

  5. I too am a native Californian and for the first time in my life have seriously considered moving to another state. Liberals in CA are just like the Agent Smith in the Matrix. They won’t stop until they’ve destroyed everything, they can’t. And why? This article explains a lot. A Zogby research study shows they are unable to comprehend the most basic economic principals. http://is.gd/SK9qDZ But, I am also an affiliate marketer and have been doing this full time since 1998. The warning that affiliates would lose their affiliations and / or would move out of the state if the law passed was widely publicized so it comes as no surprize. If the areas where I specialize required the collection of sales tax, I would be writing this from Texas. But it’s okay as long as our legislature feels like they’re doing good, then there’s no cause for them to have to think.

    Comment by Im_bonafide | August 18, 2011


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