California Governor Schwarzenegger Vetoes California Affiliate Program Tax, Overstock Reinstates California Affiliates

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It seems like only yesterday we were reporting that, due to California’s legislature (among others) being poised to pass a tax on affiliate programs (which some were also calling an “advertising tax”) such as those run by Amazon and Overstock, these and other companies were resorting to dumping the affiliates in those states and that, in fact, Overstock had just dumped all of their California affiliates for that very reason.

In fact, it was yesterday. And in response, California Governor Arnold Schwarzenegger vetoed the tax increase which the California legislators had passed, including the problematic affiliate tax provision.


In a statement released by his office earlier today, Governor Schwarzenegger said “After passing the largest tax increase in California history, it makes absolutely no sense to go back to the taxpayers to solve the current shortfall – that’s why yesterday I vetoed the majority vote tax increase passed by the legislature. With unemployment at an all time high, we should be doing everything we can to keep jobs and create jobs in California. That is why my Administration immediately contacted Overstock.com when we learned of this news and, I am pleased to announce Overstock.com has reversed its decision and will continue to do business with affiliates here in California. I will continue to fight to keep jobs and businesses in California.”

The statement went on to say that “Overstock.com estimates its internet affiliate advertisers in California create millions of dollars in revenue.

Yesterday, in our article on the subject, we wondered “Is it arrogance or simple ignorance that is leading these state legislatures to pass laws that, instead of bringing in new taxes, are depriving their state economic engines of taxable spending fuel?”

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We’re glad to see that when it came to this question, the buck doesn’t stop at the Governor’s desk in California.

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The Internet Patrol is and always has been free. We don't hide our articles behind a paywall, or restrict the number of articles you can read in a month if you don't give us money. That said, it does cost us money to run the site, so if something you read here was helpful or useful, won't you consider donating something to help keep the Internet Patrol free?
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2 thoughts on “California Governor Schwarzenegger Vetoes California Affiliate Program Tax, Overstock Reinstates California Affiliates

  1. Jct: There’s nothing wrong with small denomination California State IOUs if I or anyone else can pay their taxes with them. When Argentina’s government workers were faced with cuts, their unions talked 6 state governments into paying them with small-denomination state bonds which could be used to pay for state services and taxes and which everyone accepted as useful currency. Best of all, when the local currency is pegged to the Time Standard of Money (how many dollars per unskilled hour child labor) Hours earned locally can be intertraded with other timebanks globally! In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours.
    U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture. See my banking systems engineering analysis at http://youtube.com/kingofthepaupers
    Too bad California State IOUs won’t be accepted in payment for state taxes and services like state bonds were in Argentina. Too bad California State IOUs will be denominated too big to use as local currency. Too bad Argentina people were smart enough to avoid the tent-cities catastrophe and California people are too stupid to follow their example.

  2. Since you are dealing with politicians, it is really a combination of arrogance and stupidity.

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