Amazon.com sent its associates an email this afternoon that reads, in part: “We will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice.”
Basically, a lot of California business that either sell goods or refer readers to Amazon are going to be cut off from a revenue source because Amazon does not play ball with states that pass such a tax.
Maryland Democrats have already floated this idea to be considered as part of the Special Session this year, despite the fact that such a tax would never meet revenue projections and would in fact do much more harm than good given the fact that Amazon (among others) would end their affiliate programs in Maryland.
So I suppose we need to ask Martin O’Malley, Peter Franchot, and the other Democrats who support this tax whether or not they support such a bill that would directly take money out of the pockets of hardworking Marylanders?