A Tax Increase Which Costs The Government Money

Here we have the story of a tax increase which will not only not bring in any new revenue, but will cost the government in question a lot of money.  The state of Illinois has decided in its infinitesimal wisdom that paying commissions to  someone in Illinois who links to your sites constitutes a business presence in Illinois. So if Amazon has affiliates in Illinois it has to pay Illinois sales tax on every order shipped to Illinois.  Amazon has already implemented the predictable solution to the sales tax problem.  They no longer have any affiliates in Illinois.

So Illinois won’t be getting any sales tax revenue from Amazon.  Plus they just lost any income taxes on Amazon affiliate commissions.  So they went to all that trouble to pass a tax that will cost them money.  If companies that depend on affiliate revenues move out of Illinois, they will lose even more money.

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