Governor Jerry Brown Passes Law to Destroy Small Business in California

by Shawn Collins on June 29, 2011

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Governor Jerry Brown of California has signed his budget into law, which includes the affiliate nexus tax.

California is anti-small businessWith the stroke of his pen, Governor Brown just put legions of entrepreneurs and their employees out of business.

The affiliate nexus portion of the budget forces out-of-state retailers to collect California state sales tax for Internet sales, based on the view that affiliate marketers constitute a tax nexus for the retailers.

The immediate reaction by countless online retailers, in what promises to be a huge list, is that they will remove the affiliates of California from their affiliate programs, so they still do not assume a tax nexus.

Simple summary for California politicians: no additional tax revenue will be collected.

Amazon already informed their affiliates that they’re out on the street.

And with scores of affiliate marketers fired by these retailers, California is going to lose a big chunk of income and income tax.

Congratulations to the CA lawmakers and Governor Brown: you’ve managed to deepen your huge deficits through some misguided bureaucracy.

Back in the spring, the state of Illinois passed a similar law, which forced super affiliate FatWallet.com to move from Illinois to Wisconsin, so they could remain in business.

How many companies in California will now be leaving the state like FatWallet for places that are not hostile to economic growth and job creation?

More details on the California affiliate nexus tax from the Performance Marketing Association.

More Info: Click here

{ 6 comments… read them below or add one }

JR June 30, 2011 at 12:28 am

I fully agree with you, great job Jerry, one more moron move by the ignorants of Sacramento, my business will be badly affected by this, CA sucks that much more now.

bardgal June 30, 2011 at 2:48 am

This article is a complete LIE. Please read the real story:

http://discussions.latimes.com/20/lanews/la-fi-amazon-tax-20110630/10

Tom June 30, 2011 at 5:07 am

Doing about 400k/year in revenue and now I’ve been forced out of California! I wish this old man Jerry Brown would learn how the internet worked!

Shawn Collins June 30, 2011 at 5:15 am

Please explain which part(s) are a “complete LIE”.

B7 June 30, 2011 at 9:36 am

I now know why California is one of the worst states for business owners. It already has some of the highest taxes in the country. Can’t wait to vote Brown out in the next election.

Matt June 30, 2011 at 9:58 am

I’m one of those that have been put out of business in less than 24 hours. I don’t understand how Mr Brown has failed to see the real damage this law will cause his constituents. The rumor is that this law was pushed by the big box stores to quell competition. If this is true, I think these folks didn’t think this thing out either as that income I made was used to buy clothes, groceries, office products, and other stuff sold at by those big box stores. If I loose my income, I won’t have it to spend at these businesses. This law creates a lose for EVERYONE- no one wins.

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