August 16, 2011
By the ZippyCart Content Team
Amazon, the world’s biggest ecommerce solution may suffer the consequences of opposing a California state tax. A group of Californians supported in part by Democratic politicians, are urging a boycott on the online retailer until certain conditions are met.
The coalition of advocates for improved health, welfare and social services is calling for the boycott of Amazon.com until the company drops a referendum aimed at overturning a new law requiring it to collect sales taxes on goods purchased by Californians.
During a news conference on Monday, the organization, called the Think Before You Click campaign, asked Amazon shoppers to cancel their accounts with Amazon. The group has even launched a website, www.thinkbeforeyouclickca.com, which seems to have gained some popularity in the past few days.
“The $200 million in annual revenue that [the state of] California loses each year through Amazon’s tax loophole would have been enough to prevent the $90-million cut from California’s Adult Day Health Care program,” said Nan Brasmer, who is the president of the California Alliance for Retired Americans.
The members of the coalition include Health Access, the Western Center on Law and Poverty, the California Immigration Policy Center and the California Partnership. All these groups have united to fight for the single goal of forcing Amazon to pay up to California. The state has recently suffered greatly from lack of funds and this may be a step to generate more revenue for the government.
According to the Board of Equalization, California fails to collect about $1 billion a year in sales taxes from ecommerce solutions. As a result, online sellers, such as Amazon and Overstock. gain a significant advantage over other California businesses that operate physical stores and collect sales tax that’s than given to the state.
It’s unclear at this time if the boycott will have any noticeable impact on Amazon’s sales or if it will extend to include other ecommerce giants. In the past Amazon has taken a strong stance against the tax.
David was born in Seattle and later attended Arizona State University to pursue a degree in Business Management. Since the days of AOL, dial-up and Geocities he has been actively following the evolution of the Internet. In 2010 he co-founded the website www.ithp.org with the goal of one day turning it into an online media empire that provides beneficial news without the fear mongering. When not blogging it's been rumored he's been spotted watching a flick at a local theater, doing back flips into Lake Washington, dominating on the basketball courts, improving society, exploring Washington's unique hiking trails, and enjoying a cold glass of his famous homemade Rose Petal Lemonade.
