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California Newest State Dumped by Amazon After Passing Affiliate Sales Tax

California is the newest state to pass a law taxing sales at companies like Amazon when those sales are generated by a local (in this case California-based) affiliate or associate. And, not unexpectedly, about five minutes after California Governor Jerry Brown signed the legislation, California becames the newest state to have their affiliates dumped by Amazon. As we’ve pondered before, 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? Instead of bringing more income into the state, by chasing away the affiliate programs, they are depriving their own residents of income – income which would come back to the local economy.