
December 1st Pennsylvania passed the Affiliate Nexus Tax law, better known as “The Amazon Tax“. This measure is supposed to support small brick-and-mortars who have been hurt by online competition.
…and right before a big election year, what politician would say ‘no’ to helping mom-and-pops?
But I’m going to make a prediction: This law will produce no additional tax revenue and will result in net business losses in Pennsylvania.
3 Reasons Why The PA Affiliate Nexus Tax is Ridiculous
- New York
- North Carolina
- Rhode Island
…when the affiliate nexus tax was passed in New York, North Carolina and Rhode Island… Hundreds of out-of-state retailers terminated their NY, NC and RI affiliate marketers, causing those small businesses to collapse overnight. And, as expected, the states saw no new sales tax revenue.
North Carolina has also not seen additional revenue from the law. Illinois has seen an outflow of Internet-related businesses after its law’s passage. While New York is collecting some revenue, it is because Amazon.com is collecting taxes under protest while the issue is litigated. If New York loses the case, it will have to refund those collections to taxpayers.










