Affiliate Tax Destroys Business

182270_6971An issue impacting the ecomerce world is collecting tax online. According to a U.S. Supreme Court decision, a web-only retailer can be required to collect sales tax from residents of states where the retailer maintains a physical location. Recently an affiliate tax laws (Amazon Tax) is taking place, which require retailers to collect sales tax. For instance, New York, Rhode Island and North Carolina require Internet retailers to collect sales tax from instate customers as well as in state affiliates, which promote their products in those states.

Companies such Overstock state that unless laws change in North Carolina, New York and Rhode Island that they will no longer have affiliates in those states. In addition, Overstock finds it poor business to continue accepting sales hundreds or thousands of affiliates in those states. Furthermore, Overstock argues that tax has impact on online customers scaring them away.

New York was intended on raising tens of millions of dollars in tax revenue that they contend would go uncollected roughly more than $70 million. Overstock and Amazon have appealed a court decision that upheld the New York Law.

In our opinion, affiliate tax destroys business and impacts communities. The affiliates will get cut out and have to layoff workers impacting the local economy. Affiliates will have to move to survive. Let the private sector run ecommerce trade and leave the state out of the affiliate tax law. For example,California supported affiliate businesses in vetoing the affiliate laws. Another instance, Hawaii sided with the affiliate businesses. Furthermore, the National Retail Federation opposes the state affiliate laws.


Kevin has 20 years of experience in sales, marketing, technology, video production, product marketing, and project management. Kevin is a Marketing Director with RP Design Web Services. Kevin received an MBA from Southern Connecticut State University and graduated with a 3.92 GPA. As stated by one of his Management Professors Dr. Robert Page at Southern Connecticut State University that Kevin was the best student that the professor ever taught. He is also a graduate of Arizona State University, W. P. Carey School of Business with a Bachelor of Science in Marketing. W. P. Carey School of Business #23 Best Undergraduate Business Programs, ranked top 30 nationwide since 1995. It is one of the top business schools in the country. The marketing undergraduate major ranks 11th. Academic rigor: The W. P. Carey School of Business at Arizona State University is a highly ranked business school, with a rigorous academic curriculum. This means that ASU graduates have a strong foundation in business knowledge and skills. Arizona State University is a top 1% of the world's most prestigious universities- Times Higher Education, 2018. ASU has ranked #1 in the United States for innovation ahead of #2 Stanford and # 3 MIT - U.S. News & World Report, 2016,2017, and 2018. Kevin just recently attended Tony Robbins’ Unleash The Power Within, a 3 ½ day live seminar. Kevin is a former member of Toastmasters International where he achieved the designation of Competent Toastmaster Award and Competent Leadership Award. Excellent public speaker and presenter (Toastmaster Award). Presented at the Javits Center “How the Web impacts the Construction Industry” Presented at the Baltimore Convention Center “How the Web impacts the Construction Industry” Kevin has strong experience in search engine optimization, local SEO, reputation management, video production, and web-based marketing solutions. Kevin also has experience working at a Fortune 500 company Graybar. Businesses depend on Kevin to make sure they have a constant flow of new prospects. Kevin improves business communications between customers, employees, and the world.

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