Referendum could get expensive
by Brian Leubitz
A new poll by the LA Times and USC shows that voters are split on the “Amazon” referendum.
The poll found 46 percent of voters favor the tax and 49 percent oppose it.
Gov. Jerry Brown (D) signed the bill last month, but opponents are collecting signatures to put a measure on the ballot to overturn it.
“At this point, Californians are evenly divided on whether online purchases should be taxed. This could be one of the most expensive campaigns in California history, and neither side starts with a clear advantage,” Dan Schnur, director of the USC Dornsife/Los Angeles Times poll, said in a statement. (Hill)
With some brick and mortar retailers looking set to join the battle against Amazon, there is going to be a lot of money flowing back and forth when this one appears on the primary ballot.
From a strategy standpoint, Amazon just gets to bash legislators, always an easy target. On the other hand, supporters of the online sales tax will have to do some explaining. There are a lot of reasons to support the tax, but actually getting the votes? Well, the old saying goes, when you are explaining, you are losing.
One more point was that there were more “Strongly” opposed to the sales tax collection than those “Strongly in favor” of the collection. So, Amazon has a higher ceiling and a broader audience to attempt to move.
Jesus !!
No wonder we elected Pete ‘White Power’ Wilson Governor, TWICE !!
Ask the voters how they feel about Energy De-Regulation !
It’ll save Sonsumers MILLIONS !!!
Amazon if they lose could just up and move their CA plants to Oregon, No sales tax there, their servers and their Kindle manufacturing facilities, CA would lose income tax money and would not gain any sales tax money as the new CA law is illegal and unenforceable.
Taxing out of state companies is and will remain unconstitutional. Brick and mortar stores that sell multimedia and electronics are going the way of the dodo anyway… Amazon can still under price even with a tax.
The tax revenues will never bee seen and the money wasted on litigation an media blitzes for the referendum could surely be spent more productively elsewhere.
Amazon/Overstock/etc are the new door to door salesman. Salesmen were necessary before there were retailers within range of every person remotely close to a metro area. Big box retail convenience shopping made Willy Loman obsolete. Now the internet has made a huge energy wasting, real estate eating, retail location totally unnecessary. It’s a paradigm shift.
And if anything Amazon is HELPING small brick and mortar retailers by killing the big box model. There will always be a need or a preference by certain people at certain times to go browse shopping. A closing Best Buy could lead to the reopening of the small electronics store near you with knowledgeable ownership and professional install services. He may even be supplied by big bad Amazon 🙂
Let the free market work…
Why would anyone be shocked that most individuals oppose taxing Internet products and purchases?
Brick and mortar is already dead. Look at Borders Books. They didn’t go out of business because of taxation, they went out of business because they lost all of their customers to a better mouse trap and the consumer trends in purchasing.
The government of California is too bloated, too fact, too ineffective and needs to be reduced.
That’s not a political point-of-view.
That’s a fact.
I am continually baffled by Dan Schnur’s comments on the Amazon referendum. Initially he said Amazon faced an uphill battle, like he didn’t understand that they will be the “no” side, which is always an advantage.
Now the referenced poll shows support/opposition for the concept of the Amazon tax at 45-51 to begin, then 46-49 with arguments. Let me make this easy to understand. THE INTERNET SALES TAX CANNOT PASS with 45/46% yes BEFORE a negative campaign has begun. Advantage is always to the “no” side and this is a great place for Amazon to start. It makes no sense to say “neither side starts with a clear advantage.” Amazon is in a terrific position.
Don’t get me wrong, I support the tax and am enjoying the way Amazon is tarnishing its brand and finally confessing that they have an unfair advantage by not collecting taxes. Unfortunately this is a big hill to climb to get the tax and related fairness…
Dave Fratello
California could find a way to enforce the Use Tax which is owed by consumers on out of State purchases. But that’s not the best choice, in my opinion.
California could abolish the State Sales Tax altogether and replace it with:
1. Higher personal income tax rates on upper income brackets.
2. Elimination of the property tax advantage created by old Prop 13 for legacy business real estate.
3. Institute an oil severance tax.
If these 3 suggestions in whole or part could be designed to be revenue neutral by matching them with the funds lost from the Sales Tax, it might pass.
Most likely the voters who are against this new law are either ignorant of current law, or want to circumvent it.
CA sales taxes are payable by the purchaser on items brought into the state if they are not collected by the retailer. Currently CA residents are on an honor system to self-report and self-pay (when filing their Form 540) any sales/use taxes on items purchased on-line which the retailer hasn’t charged (“withheld”, like an employer that withholds income tax then remits to govt.) sales tax.
The State should collect it. If it is presented to the voters as unfair to local business and schools, it will fail. By the time next years election takes place, voters should be willing to put it to out of state blood-suckers who kill local business. Amazon should have never gone near this.