plumsauce - 7:06 am on Jan 19, 2011 (gmt 0)
It appears as though big corporations are behind these stupid manuevers because these big corps have brick and mortar stores that pay taxes and don't like that internet stores are tax free. So they are attempting to punish the internet retailers to gain advantage. In Illinois, it was said that Walgreen's was one of the instigators of the Illinois advertiser tax bill.
These advertiser tax bills hurt the affiliate and the state because the affiliate gets dropped and loses income and the state loses income tax revenue from affiliate. The big corps are the only ones who stand to profit.
And if you, or Amazon, or Google could gain an edge in some way, would you care if your state benefited?
Does anyone remember that Google specifically arranges all of its affairs in order to pay the least tax it can? And that they have been spectacularly successful at it. Those are potential tax revenues that might have benefited Illinois, and therefore, avoided the specific action at hand.
So, why aren't you calling down Google?
Everytime someone avoids paying a dollar in taxes, it is a dollar that will be recovered from some place else. Perhaps, your pocket.
States did not have this problem with factories employing workers in state. The problem arises because of the ability and strong preference of internet based businesses to say that they are actually domiciled in places like Cyprus or Malta. At that rate, there must be two Starbucks shops on every block of every street in those countries.