Last year, New York passed a law that would collect tax from online shoppers, in an attempt to “level the playing field” between online retailers and mortar retailers. This year, South Carolina wants to do the same thing.
David Hoyle, NC Senator, says it’s not fair that online merchants avoid a sales tax when mortar and investment companies with a “physical presence” must pay them. He says enforcing a tax on online merchants will help the state break out of their budget crisis.
Is this really the best solution? This tax will only produce a short term gain, as it will most likely be offset by the loss of business and revenue from affiliate marketers.
Amazon has already announced that they will sever their ties with all North Carolina affiliates once the law is passed. So what happens when all these affiliates are dropped? That is a big loss on income tax.
What can you do as an affiliate? Don’t sit back and take it.
