Category: Amazon

Amazon Goes Galt, Cuts Off California to Avoid Internet Tax in Zimbabwe, U.S.A.

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It was in February 2009 that I first compared the situation in California to Mugabe’s bankrupt kleptocracy. And the situation is only getting worse:

Gov. Jerry Brown has signed into law California’s tax on Internet sales through affiliate advertising which will immediately cut small-business website revenue 20% to 30%, experts say.
The bill, AB 28X, takes effect immediately. The state Board of Equalization says the tax will raise $200 million a year, but critics claim it will raise nothing because online retailers will end their affiliate programs rather than collect the tax.
Amazon has already emailed its termination of its affiliate advertising program with 25,000 websites.

In essence, Amazon has “gone Galt” rather than submit to California’s Internet tax. The immediate victims? California bloggers like Donald Douglas at American Power.

For the benefit of anyone too stupid to understand why the California Internet tax is a bad idea: All the revenue from sales commissions to California’s 25,000 Web site operators who had participated in the Amazon Associates program was taxable as income.

Now? Zero income. And also zero sales.

Ergo, nothing to tax.

It is astonishing to see how California, where venture capitalists once made Silicon Valley the world capital of technological innovation, has now turned anti-capitalism, anti-technology and anti-innovation, driving the world’s largest Internet retailer out of America’s most populous state.

To the Reader Who Bought the Foodsaver V2244 Vacuum Sealer from Amazon

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About a week ago, somebody clicked on one of the several Amazon links on our blog and ended up purchasing the Foodsaver V2244 Advanced Design Vacuum Sealer ($79.50) plus several packages of Foodsaver bags ($24.45 and $9.97). The result of your purchase through my Amazon Associates links was a $4.56 commission for me. Thanks!

Instapundit sometimes feels the need to explain to his readers how the Amazon Associates program works, so perhaps I should also explain.

You click one of the Amazon links on this blog — whether the display advertises books, groceries, electronics, whatever — and regardless of how you surf around within Amazon’s massive online shopping selection from there, anything you purchase from Amazon during that particular trip will result in a small commission to me.

It’s pretty interesting to check these sales reports online because, although as a rule I only use Amazon links for book titles — Thucydides’ History of the Pelopponesian War, a timeless classic, only $10.28! — people buy all kinds of stuff there. Earlier this year, for example, some photography buff among our readership bought a Sekonic L-358 Light Meter for $309 and thereby earned me a shweeeet $12.36 commission. The reader who paid $69.95 for a pair of Shimano Men’s Mountain Bike Shoes? That was $2.80 in my pocket.

So even though I don’t think of the blog primarily as a vendor of photography equipment and sports shoes, nevertheless Amazon Associates permits me to earn cash that way. And since I am proud to call myself a Shameless Capitalist Blogger, earning cash with little effort on my part is super-cool. However, since I’m now actually expending a little effort to explain all this, let me highlight a few goodies:

  • Cuisinart Grind and Brew Thermal 10-Cup Coffee Maker — A few years ago, I got my wife one of these for Christmas, and it’s the best doggone coffee maker on the planet. You add the beans, it grinds ’em up and then brews the coffee — automatically! The coolest thing is the timer feature: You put in the beans and water the night before, set the timer and then in the morning you wake up to the sound of the whirrrr as it’s grinding those beans. About 10 minutes later, you get up to find that delicious coffee from fresh-ground beans waiting for you to pour your first cup. Oh, yeah: The stainless-steel thermal carafe will keep the coffee warm for hours. Only $115.
  • Kobe Wagyu Beef Tenderloin Filets — How awesome is the Internet, huh? You can order eight 8-ounce super-premium steaks, and get free two-day shipping, for only $449! Imagine the look on your friends’ faces at your next backyard barbecue when you tell them they’re about to eat a $56 steak. (Hey, I’m just a poor blogger, so I can only imagine it, but maybe some of our upscale readers are into that high-status gourmet beef thing.)
  • The Hanky Panky Low Rise Signature Thong Panty — Maybe you ladies want to surprise your guy by wearing something kind of slinky, or you guys want to buy something sexy for the missus. Amazon Associates doesn’t judge you. They just want you to buy this deluxe lingerie item for $18.

Amazon offers great prices, huge selection and “Super Saver” shipping deals. Like I said, click the links, order whatever you like, and the commission helps support your favorite Shameless Capitalist Blogger.

Coffee, beef and booty? These are just random suggestions, people, and not intended to imply any thematic connection. But I guess the combination would make for an excellent weekend, huh?