Thursday, June 30, 2011
Stick em up!
Taxes, what a fun thing to write about. I received an email yesterday that my Amazon associate account has been canceled.
I have to take my hat off to Amazon, even though they are canceling thousands of associates that are registered in California.
Simply because they do not want to charge tax for shipments into California. They do not want to be the tax collector for the State of California....
Can you blame them?
Oh I am sure that there are several people that will say of course!, it's just part of them doing business.
Ok, what about the associates?
Associates are ones that have a link on their site that carries an interested party to Amazon to order a book or a Kindle or anything that Amazon has. You then get a big fat commission check amounting to 3 to 10 % depending on the item. Ok, maybe not so fat....
So now lots of people in California will not get a little income that they probably could have used.
Well, Amazon can afford to collect tax.
There are associates in Mexico, Honduras, All of Central America and lots of places....those are not effected, as long as you don't have your account in California.
You would be amazed on the small percentage that Amazon has to work on, now they would have to hire people to administrate and do the taxes etc.
I know from personal experience that it took my business at least 1 day a month, to fill out and process all the forms and stuff for the State of California's tax system.
Oh, but the state paid for that ?
No, the businesses have to absorb the overhead of doing that...one day salary, lights, insurance all the stuff and then the employee could not do productive stuff.
What a great system.
And the State of California is still broke, bankrupt , although not admitting that.
I know that it is not going to effect everyone but, it will effect enough people. If Amazon did collect they would simply pass on the costs to the consumer. Less people could afford purchases, and it would be then counter productive, less sales, less jobs, less everything.
So, I guess I will transfer my account to Mexico, we already have a few bank accounts, credit cards on our Mexican accounts, so my big fat commission check can still arrive...with it I will be able to get a cup of coffee, now and then.....more often, ....then.
But that's my opinion........
Next, A fellow blogger, Calypso had an interest in that a pickup truck license fee and tax is lower than a car....
We will come to that subject in our next chapter......
"The Taxman Cometh"