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Old June 22nd, 2009, 11:53 AM   #1
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Exclamation Ken Rockwell and other 'free site' fans from California

Might want to check this out... the June 22nd entry.

http://www.kenrockwell.com/tech/00-n...799d1bb5fa6a2f


Apparently there's some pending language in the Cali state budget/tax law due to be signed that would screw up the financial mechanisms that allow Ken to run his site, and that of a lot of other free sites too. These "affiliate" links from shops like Adorama in New York state that support these free sites would be considered by CA state as Adorama having an in state presence, and thus they'd have to collect and pay sales tax. That's retarded, because they wouldn't pay a dime. They'd just drop the links instead.

That would mean that...

- CA would not get a dime in extra sales tax revenue because the shops would just drop links to remain "out of state".

- They would LOSE tax revenue because Ken would pay less (or no) income tax anymore, due to having no income since apparently the majority of his work is supported by those links.

Overall, everybody would lose.

So if you're in Cali and value these "free" sites that are supported by links like these, you might want to look into this and contact your state representative about it. I would, but I don't live in Cali.
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Old June 22nd, 2009, 01:15 PM   #2
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good info. never even heard about this
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Old June 23rd, 2009, 07:44 AM   #3
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This is more commonly known as the 'Amazon Tax'. If you search Google News for that you'll find some more recent stuff.

http://news.google.com/news?hl=en&q=Amazon%20tax

Looks like North Carolina just passed this but it hasn't gone into effect yet, and Amazon has said it'll terminate affiliates rather than paying collecting (having to charge) sales tax for sales in that state.
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Old June 23rd, 2009, 08:26 PM   #4
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Damn...I really like his site too. C'mon Cali folks!
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Old June 23rd, 2009, 08:53 PM   #5
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noooo.....
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Old June 24th, 2009, 01:51 PM   #6
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I sent a letter (email) to the Governator. Not a CA state resident, but since I greatly enjoy these sites the CA laws will affect me too.
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Old June 24th, 2009, 01:59 PM   #7
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what exactly did you write? I live in CA and don't mind mailing in something if it is to preserve this site.
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Old June 24th, 2009, 02:23 PM   #8
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there's a sample letter you can send on his site, and tons more info today:

http://www.kenrockwell.com/tech/00-n...6a5b71bdba379c

There's apparently 20,000 websites like Ken's based in California that would get hurt by this law, although Ken would get hurt particularly badly because he's saying that 90% of his income is through these referral links.


Sample letter: http://www.kenrockwell.com/tech/00-new-today.htm#letter

I wrote my own but can't get to it right now.
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Old June 24th, 2009, 02:48 PM   #9
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Here's mine:

Dear Governor Schwarzenegger,

Please do not sign the current Budget Tax Bill, as it contains the so called 'Amazon Tax' (affiliate tax) The state of California already collects income tax from these affiliates. If the Budget Tax Bill is enacted with this 'Amazon Tax' language, Amazon will simply cancel its affiliates in the state of California, you will lose income tax revenue already being collected from this, you will not gain any additional sales tax revenue, the people that run these websites will be out of jobs and lose their businesses, and those that enjoy their websites will lose too.

In short, everybody loses.

Please do not sign the Budget Tax Bill as it stands now with the 'Amazon Tax' language.

Sincerely,

"me"
"my city, my state" (not in CA)

a reader of the kenrockwell.com website which is supported in large part via its Amazon affiliation.


Don't copy mine directly! Just come up with your own real quick or copy Ken's.
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Old June 24th, 2009, 02:50 PM   #10
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ken rockwell is a joke.
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Old June 24th, 2009, 03:31 PM   #11
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Originally Posted by changaroo View Post
ken rockwell is a joke.
canon shooter. Ken's site is okay. I disagree with some of his opinions but I like the information on the site. I still go there when I want to quickly look up a lens or something. I'll be sending a letter too.
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Old June 24th, 2009, 07:34 PM   #12
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My personal opinion is that most of the people calling Ken Rockwell a joke are themselves jokes.

So there.

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Old June 30th, 2009, 07:11 AM   #13
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Just as you suspected...

Amazon Drops R.I. Affiliates

http://online.wsj.com/article/SB124630810805070105.html
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Old June 30th, 2009, 05:56 PM   #14
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Yay for Rhode Island. Now Rhode Island businesses are going to lose money, AND they're not going to get the added sales tax they had hoped to get. Hopefully Cali pols wise up.
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Old July 1st, 2009, 01:28 AM   #15
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Yea I wonder if Cali will hold off to see what happens to Rhode Island. Apparently NY already has this.
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Old July 1st, 2009, 04:29 PM   #16
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Came across this today as well. Looks like Hawaii jumped on the bandwagon...

http://online.wsj.com/article/SB124638801268074915.html
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Old July 1st, 2009, 04:58 PM   #17
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IMO.... you guys would hate me.. but i think this Tax bill is okay.

so i'm gessing he advertises to make an income, and as far as i know.. he doesn't get tax.

it seem that he is cheating a system that of like Drug Dealers do too.

(before i continue let me research this a bit more, again i'm not here to argue and call no one a joke)
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Old July 1st, 2009, 05:39 PM   #18
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He pays income tax on his earnings via affiliate sales kickbacks to the state of California as it is, so how would he cheating the system? Cali is already getting plenty of tax revenue from him. If they pass this bill they'd get less (or none) from him due to the poorly thought out strategy and unintended consequences. Generally states pass new taxes to collect more taxes, not get less.

I don't think drug dealers pay sales or income tax, do you? So the comparison is pretty much irrelevant.
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Old July 3rd, 2009, 10:43 PM   #19
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Woohoo! For Cali, that is (check the link). TX is apparently thinking about a tax law too...

http://online.wsj.com/article/SB124654988657386583.html
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Old July 3rd, 2009, 10:49 PM   #20
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Quote:
Originally Posted by SteVTEC View Post
My personal opinion is that most of the people calling Ken Rockwell a joke are themselves jokes.

So there.

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