I just came across some good news for affiliates in California, Advertising Tax Vetoed from the CA Budget, in a post on Jangro.com.
Governor Schwarzenegger vetoed the advertising tax in California, and Overstock.com announced that they will not be dropping California afiliates.
California lawmakers proposed a tax on affiliate advertising and sent legislation to the Governor, but as promised he vetoed it because we cannot solve our budget deficit by raising taxes and driving businesses out of the state.
Overstock.com estimates its internet affiliate advertisers in California create millions of dollars in revenue.
As I stated in an article at Internet Retailer earlier today (Overstock ends affiliate agreements in four states over sales tax rules), states see this as incremental revenue for them, and they aren’t realizing that affiliates that get fired from affiliate programs will pay less income tax and potentially burden the state with unemployment benefits.
It’s great to see that Governor Schwarzenegger saw the big picture.
More details in a press release from the Office of the Governor.
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Wow… What can I say? Kudos to Terminator!
To be honest I m no big supporter of Arnold. (I mean as a politician – his movies were great!
)
However its good that he wasnt to keep the taxes the way they are. More taxes means less money for the people, means less consuming, means less productivity, means even less money for the state.
Hopefully he will stay on this road. We have a global financial crisis and we cant afford to get in even bigger trouble because of short-view minds.
Thanks for the update. Good to hear a true statement from a politician as compared to how many have been acting lately:”he vetoed it because we cannot solve our budget deficit by raising taxes and driving businesses out of the state.”
Dropping the Affiliate (Advertising) Tax will do more for increasing the Income Tax collected by the State of California than anything they have on their plate. Other smart states will follow.
I’m so glad to hear this. Thank you for keeping us updated. Hopefully the idiots who proposed this legislation get the point and stop wasting time.
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