Amazon takes on California over sales tax
For years, US consumers could dodge state sales tax by shopping online with websites such as Amazon.com, Bricks and mortar stores can’t compete. Bookseller Borders is on the verge of shutting down. However, states such as California are hard up for cash after the financial crisis. Governor Jerry Brown decided to make Amazon charge the sales tax.
Amazon CEO Jeff Bezos claimed it was too hard to figure out the sales tax for every state. When that did not fly, he shut down Amazon’s affiliate program in California. His next step is to introduce a ballot initiative to try and get Californians to help him keep the tax loophole open.