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.

With ever more states either passing or contemplating passing an Internet affiliate program sales tax, the two edges of that particular sword are being felt from coast-to-coast, as associates are being slashed from the lucrative affiliate programs of some of the largest Internet companies.