Brad Crooks, a Colorado-based photographer and affiliate marketer, has posted an important link on his Facebook wall — a link to Tax Foundation‘s new report on the harm and failures of the affiliate/advertising tax:
I have purposely highlighted, Brook Schaaf’s comment which I echo 100%. I agree that calling it an “Amazon tax” narrows (and shifts) the focus, and does a disservice to the affiliate marketing industry, hiding the real damage done to thousands of small businesses. I was happy to see though that the Tax Foundation has actually got their conclusions right, stressing that that such “taxes are unlikely to produce revenue in the near term”, burdening interstate commerce, and harming economic growth. Also, some states have already “seen a drop in income tax collections due to the law” instead of the originally projected budget increase [more here]. They will, because in states that decide to collect the affiliate tax, merchants (sad, but true) instead of collecting the tax, often choose to terminate their business relationship with affiliates, thereby removing their liability for the tax collection. Such merchant solutions cause a great harm to thousands of local affiliate marketing businesses, negatively impacting their income.