Amazon, today, flexed their muscles in an attempt to intimidate the state of North Carolina out of passing a new tax bill. Andy Beal over at Marketing Pilgrim has the story:
It appears that North Carolina is about to follow New York’s lead and implement a tax collection scheme that will see Amazon.com shut down its Associates affiliate program in the state.
Last time I checked, adding new taxes in a recession were a bad thing. Amazon is a huge retailer and many people–myself included–supplement their income using its affiliate program. If others follow Amazon’s lead, then what affiliate revenue will be left to actually tax? NC would still not have any tax revenue from affiliate marketing AND those making a living from affiliate marketing lose their income. Nice move NC….not!
Marketing Pilgrim contains the text of the letter sent by Amazon, but the content of the letter is less important than the purpose.
It’s a savvy move to reach out to the very vocal members of the affiliate community to affect social change. I know just how powerful, at least in voice, that affiliates can be once I batted around the old hornet’s nest last year during a blogfight between affiliate marketing guru John Reese and my self.
By inflaming a large swath of the affiliate marketing community, you can be sure that the phone lines at this time are absolutely swamped in North Carolina asking that this legislation be stopped.