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California: Call your state Senators! Save the Amazon Tax referendum!

In the big budget deal this year was a provision known as the Amazon Tax or the Internet Sales Tax. Officially it’s an expansion of the Use Tax. Whatever you call it, it’s an unconstitutional* cash grab, attempting to force out-of-state Amazon to pay California sales tax.

The tax has already killed businesses in California that depended on revenue from Amazon and other affiliate program hosts, who were forced to shut out California residents in response to the tax. Even though the tax itself is set to take effect January 1, out of state retailers needed to take action to protect themselves in advance. So as a result, state revenues have been reduced, not raised, by this bill. The already lagging state economy has been worsened.

So a referendum will be put on the ballot by the people, to be voted on by the people, to stop this harmful, illegal tax. It could pass, too. Early polling hasn’t been bad. So the Democrats are going to try passing a new bill, starting in the Senate, to change the tax to make it take effect immediately.

The trick is that by passing the tax as urgent, it will nullify the referendum under the state Constitution. And worse, to get support for this, Democrats have effectively bought off eBay to turn on Amazon, by making tweak to the bill to exempt eBay from having to collect tax. Convenient, huh?

So, California, it’s time to take action and defeat this attempt to nullify the referendum.

Five Republicans are being targeted in the hopes of getting them to support this subversion of process in California, and ultimately to support an illegal tax hike. But they all could do to hear from us.

So call your state Senator today and urge them to reject any attempt to subvert the referendum process, and to vote no on any bill to strengthen the Amazon Tax or any Internet sales tax.

My Senator, Bill Emmerson, said in April that the people should decide on the budget. It’s time for him now to back up those words, and vote no.

* “The Congress shall have Power… To regulate Commerce with foreign Nations, and among the several States, and with the Indian tribes;” Last I checked, the California Assembly and Senate are not the Congress.

COMMENTS

  • joecollins

    Had a nice chat with a staffer who told me my senator was not supporting this bill. Good.

  • toadold

    The business entities that were in favor of the Amazon tax because of the perceived competition would/will have ended up shooting themselves in the foot. As an example, as affiliates loose income, and as people order less from Amazon, UPS and FedEx will loose business further dropping tax revenues and income for buying stuff from Ebay and Walmart to name a few. Already there are people who were on the edge who are now moving out of California before they go under because of the loss of Amazon income.
    There is an old stock market saying, “Bears can, make money, Bulls can make money, it is the Hogs that ruin it for everyone.”

  • toothpick

    I called the office of my state senator, Sam Blakeslee, who is on the list of targeted senators. His staffer said:
    - Sen. Blakeslee voted “no” on this measure last time it was brought up (I didn’t know it had already been up for a vote), and she thought it likely he wouldn’t be changing his stance
    - The office was getting a lot of calls about this issue, most of which were in FAVOR of the measure.

  • carolina

    This is a reason that political offices often ignore the ‘vociferous’. It is usually pretty easy to tell when there is a call/email campaign by a particular group.