Affiliate Marketing: Why State Lawmakers Are Idiots

If this comes off as a complete rant, so be it. I’m upset. I’m angry. Mostly, just when you thought elected public officials couldn’t get any worse, they do this. And I bet you if you look at their resumes, they were responsible for the construction of this child playground slide.

North Carolina Lawmakers Creation

North Carolina Lawmakers Creation

What am I upset about? Lawmakers in North Carolina are following the lead of those in New York and Rhode Island by instituting an affiliate tax or otherwise known as the “Amazon Tax”. What is it? Basically, if you are an affiliate, the merchant has to collect sales tax on the sale and submit it to the state where you are a resident. Mind you, not where the purchaser of the product lives, but you, as the affiliate. If that sounds stupid and idiotic, you’d be right.

Now, if you were the merchant, what would you do? Would you collect the sales taxes and cause extra burdens to be on your company? I wouldn’t either. The easier solution? Terminate the relationship with every affiliate in those states. And now, it is happening in my home state of North Carolina. I have already had seven affiliate relationships terminated which account for over 40% of our revenues. That’s significant – especially in this economy.

I know I will find a solution, even if it means moving my company out of this state. But while finding a solution for my business is my chief concern, I am also concerned that states tend to be copycats and this can soon spread to all states. If you’re an affiliate, this can literally crush your business overnight.

The bill goes before the governor on July 15th. The best way to stop this spread of “idiot politics” is to stop it from being passed in North Carolina. If it fails, other states may drop interest in the tax.

What can you do?

Two things:

1) Sign this online petition. At the time of this writing there were 832 signers. We need a lot more to get their attention.

2) Even if you are NOT a resident of North Carolina, you can fill out this form to be delivered to the governor’s office. On the drop down option for the Subject, choose Taxes & Revenue. Be direct, to the point, but most of all professional.

Forward this post to as many people as you can. I didn’t take this to seriously last month when it was discussed, but now I face reality by having my income severely reduced. Take a few minutes of your day to support this to avoid going through what I am right now.

Comments

  1. says

    Hey Gunter,

    It is based on “short sightedness”. A few months ago New York lawmakers strong armed Amazon to pay the tax, which Amazon did. However, other states, like Rhode Island followed New York’s lead, and Amazon saw what was coming next, so they just terminated the relationships. The same is happening with North Carolina, and merchants are terminating the relationships BEFORE the law is signed. I guess they are looking to make a statement too.

    It is a complete mess and what lawmakers don’t understand is, if there is no revenue to tax, there is no tax revenue. 7% of zero is still zero. And the fallout from additional unemployment, businesses leaving the state, and loss of disposable income spent within the state, etc.

    Sales tax and income tax are a joke. You tax what I earn and tax what I spend. Chose one or the other, but not both.

    I’ll stop now before I get any more worked up…

  2. Fistuk says

    I’m not from this great country of yours, but doesn’t it take like 5 minutes to open corporate a new Delware company?

  3. Rick says

    Jerry,

    Sorry to hear this, but as you said, you will get through this because you always do.

    I am happyu to sign the petition and I will forward it through my work as well.

  4. says

    They are threatening the same thing in California. We are already in big trouble here, so what do they do…discourage businesses from making money or encourage them to leave.

    It’s scary that the people in charge just react by taxing anything they see, instead of thinking things through long term.

  5. Barney says

    Hey Jerry,

    This really does suck and is just one more thing that infuriates me about our present government (both sides of the fence). We not only have to send a strong message now (I signed the petitions I could) but next election cycle they all need to go imo! Not only are they spending Billions to “stimulate” the economy by giving our hard earned money to people and projects that have no right to it, now they want to tax us again to pay the tab, only it will backfire on them because exactly as you stated above, 7% of zero is well a bankrupt country.

    I could go on but let me just say, we could sure use a few more good men in Idaho if you are looking to move!

    Keep pressing on, you are a problem solver so you will find a way around this but it just makes my blood boil. Ok, now I am starting to rant so will quit. I am just fed up with what our politicians are doing to this once great nation.

    Barney

  6. says

    These idiot lawmakers don’t realize how portable internet business are and they’re just driving people out of the state/country. It might be a long time before we have enough politicians in office that understand how things work and can prevent stupid stuff like this.

  7. Elliot K says

    If you’ve been wondering why “tea parties” have been popping up all over the country, you begin to see why. For the first time in years, I had an inspector come into my office to check that I had my Occupational License posted, if you can believe that. It was really a ruse to make sure we’re up-to-date and paying our license fees, so expect to see an upward trend in tax collection, especially in tax deficient states. Look what’s happening in California. Look at how many people have fled NY due to onerous local taxws. I expect the trend will continue as we are responsible for our current elected officials, and they all want mo money.

    You’re on the right track, get petitions into their offices that express the will of their constituency. AND protect yourselves with a Recession Proof Business.

  8. says

    Note: It doesn’t matter where you are incorporated. I am incorporated OUTSIDE of North Carolina. But because I have a business office in North Carolina, the merchant must collect sales tax on my affiliate sales.

    You’re right Barney, this was once a great nation. It’s not looking that way anymore.

  9. says

    Yet another reason I love living in Texas. And now for my conservative rant…

    I am sure you guys also see this is double taxation. This was the reason the 13 colonies declared their independence from Britain. I am all for helping out those in need which is usually a liberal politician’s stance. However, the government isn’t really an entity with a soul & spirit and the government can’t create money out of air. The blue states have great social programs to help the less fortunate, but it is literally breaking them financially. California is the first to feel the birth pains with their IOU tax returns. I read in Money magazine several months ago that 50% of millionaires have left Manhattan because of their insane tax system. Bottom line is that if you live in Manhattan that the government (city+state+national) take a grand total of approx 70% of a million dollar a year wage earners income. It really sucks that the only option for business owners & fortunate, wealthy individuals is to leave their home state. I can’t imagine how hard that would be on a family. My wife and I have discussed what steps we would take should Texas fall to liberal ideology. It wouldn’t be easy but providing financial security and better quality of life for my family would be more important to me than giving 60-70% of my earnings to a government to squander.

    Oh, and btw, my wife and her immediate family lean to the liberal side. Of course my opinion is they only see the benefits of having a liberal government. Provides great conversation at the dinner table on holidays. :)

    I will definitely sign the petition Jerry.

    Hiv_Neg_Greg

    ps. Loving your book “Google: Best Practices Guide”. It is my outline for taking my businesses to the next step.

  10. says

    Maybe there are some good reasons to incorporate offshore after all? Here in PA they have what is called a USE tax – if you have any type of business and purchase a good or service from a vendor outside the commonwealth that is subject to sales tax within the commonwealth, you, the buyer, are responsible for submitting the USE tax every six months.

    Insanity created by lawyers who are now politicians all of whom have never created or earned a living from a real business or job, thus how can we expect them to understand the insanity they foment.

  11. Ken says

    Politicians are idiots – what else is new? Why do you think they are politicians? They are every bit as greedy and power-hungry (and probably moreso) as those that they vilify in the private sector. Welcome to the Age of Obama – it’ll only get worse. And really, do you think there are enough internet marketers to get the attention of these dopey pols? Probably not, but hopefully a stand can be made in NC.

  12. says

    I got whacked as well. 2 of my programs so far have already sent “intimidate termination” notices of my programs.
    In addition to the lost revenue, I now have untold hours worth of work to modify all the pages and links that carry these products.

  13. Dave Roth says

    Oh the wisdom of lawmakers. I don’t doubt that they believe that if the rich were taxed at 50%, doubling the tax to 100% would double their revenue. It’s amazing what kind of revenue you can drum up with 100 politicians and an excel spreadsheet.

    These guys should take a look at the effect of the millionaires tax in MD or the high corp taxes in CA. They THINK it’s pay or play. They forget the 3rd option, move out of the state.

    Sadly though, it looks like the state of California would end up getting bailed out by the federal gov’t…making one state’s budget crisis, all of our problem.

  14. Bob Gatchel says

    The thing is, like it or not, WE are ALSO part of the problem as well. For YEARS we’ve let politicians run rampant over the free market and even our rights – YES by BOTH PARTIES!

    This Amazon Tax is just yet another one of things that these IDIOTS keep instituting … but this is not NEW! We the American people kept voting in the same bozos that “brought home the bacon” and if what they did didn’t affect us, we didn’t care. BELIEVE ME, I was one of those! But it has gotten out of hand!

    This whole “tax the rich”, and “tax those big even companies” is SO against what this country was founded on. Remember what one of our founding fathers said: ” The power to tax is the power to destroy”.

    We in the US do need a “peaceful revolution” where we literally “throw the bums out” and find people that not only will “support, protect and defend our Constitution” … but they should ALSO K-N-O-W it!

    Folks – even if you love your local congressman, your senator, your president or ANY elected official – you MUST vote them out for new blood (and do the same to them) Entrenched power in any elected office is dangerous, and we need to remind them (by ousting them) that we STILL in charge – (for now)

  15. says

    What are the big boy’s doing about it? It seems to me the loss in revenue to an affiliate network like CJ and other top networks are destined to loose millions from advertisers dropping affiliates.

  16. tswatek says

    Ditto everything Greg from Texas said. What is so depressing is that liberals don’t see the whole picture and just think that “someone else” is going to pay for these benefits. By the time they wake up and realize that the “someone else” is eventually going to be themselves and their kids, it will be too late.

  17. says

    Sorry to hear about this Jerry. I’ll sign your petition. The country is going crazy right now. Whoever voted for “Change” is getting it right now. Our country is being taken over by “takers” instead of “builders” of income. Every one of these big companies (Amazon,Google,Yahoo etc) roll over to politics instead of standing firm. Saying no to countries like China and states like New York takes guts, something they don’t have. Wait till cap and trade and the health program gets rammed down our throats.

  18. says

    We should send this to ALL business people not just affiliate or internet marketers. What business is not online today and this is just gearing up to put some tax on all internet transactions. Need to stop and push this back now! And also forward to all blogs we go to. a few high traffic political blogs can help spread this even more.

  19. says

    Jerry,

    Sounds like Nevada is going to get a HUGE influx of new corporations! :-)

    Their model is what other states should follow, not this stupid attempt to increase tax revenue!

    Why can’t they see that what they are doing is penny-wise and pound-foolish? It will just drive businesses like yours out of the state, thus significantly decreasing tax revenue in the long run!

    I’m glad the “Governator,” in California, is doing the right thing!

    Thanks for your efforts!

    Wil

  20. Jerry says

    When you were voting for change what did you expect? Did anyone study our elected officials background before voting or was the kool-aid that intoxicating?

  21. Dan says

    Wouldn’t this lead to double taxation?
    For example, if a merchant has a presence in California (headquarters, storefront, shipping warehouse, etc) and the customer is also in California, the merchant is already required to pay California sales tax on the purchase. Now, if the affiliate that referred the sale is in North Carolina, that state would also require sales tax be paid to them… so TWO states would be collecting sales tax on the same transaction.

  22. says

    This is crazy. Do they not see right now that the American people are really getting annoyed with the government taking control of everything we have and hold sacred. They’ve got their hands in too many of our money pots. It’s just a matter of time and things are going to get chaotic – and I’m a fairly rationale person – but they’re going to far with bailouts, socialism, etc.

    Here’s my post after signing:

    I support this petition. Ridiculous – more taxes. The government is starting to take too much control in every aspect of our lives – this is just another example. Lawmakers used to be citizens too – how easily they forget and become power mongers.

  23. says

    Incorporating in Nevada won’t necessarily help. If your office is still in one of these states, you’ll still be affected.

    Let’s all move to Costa Rica!

  24. says

    Hi Jerry,

    This is infuriating but I’m not surprised. Lawmakers are almost almost clueless and don’t live in the real world.

    As a super affiliate myself, it’s concerning. And for all affiliates, they should be outraged from not only a financial standpoint but a moral and legal one as well.

    This has happened/affected a close friend of mine and another super affiliate who got kicked out of some programs he was promoting at CJ.com because he lives in NY.

    I am going to blog about your post at my blog and draw attention to this issue.

    I hope you recover from this. You are an innocent productive member of society who once again got steamrolled by stupid government policies.

    Regards,
    Dan Ho

  25. J.J. says

    Hey guys, I am saddened by this news but not at all surprised. The US is moving in a direction of a police state where they will take away all of your rights and your assets. This is not a democrat or republican thing either, it’s from the power structure behind these Political toads whether it be Obama OR McCain.

    I realize this is an extreme view, but every time I go back to the US (I live in Europe, and WILL NOT go back to the US ever) for a vacation I am amazed at how they continue to take away more of your freedoms (e.g. $375 tickets if you go 46 MPH in a 45 zone, and if you happen to do it the next day, without knowing you got a ticket the day before, it will be $1000. Another violation and they impound your vehicle. And people don’t see the writing on the wall of how they’re taking away their freedoms?).

    What pisses me off the most is my country has been stolen from me by the Federal Reserve (a private corporation mind you) and know one either cares, or knows, etc. Sad, sad days in America. And it’s NOT going to get any better unless the FED is removed and that will require a HUGE revolt that I don’t see Americans capable of making at this stage, since most have their head in the sand when it comes to what is really going on.

  26. Bob Gatchel says

    @JayCunningham: You said “Every one of these big companies (Amazon,Google,Yahoo etc) roll over to politics instead of standing firm”.

    It’s not the job of “big companies” to stand firm and stand up. Their job is to make money and profits for their business, their investors, their shareholders and their employees – NOT necessarily directly deal with political policy (that is unless you are GE and have close ties with the administration and will do VERY well with custom made legislation) ;-)

    It’s not Google’s, Amazon’s or ANY other company’s requirement to do ANYTHING that hurts their business – and the same goes for us. And if it hurts their business to NOT have affiliates in a state that is doing that “stupid tax”, then they have to do what’s best for the company. AS ANY OF US WHO OWN COMPANIES OR HAVE EMPLOYEES WILL ATTEST! I know that this may sound like I’m somehow supporting what happened – I DON’T! I’m just looking at what business is all about!

    The LEGISLATURE are the ones that push this crap through and because they have the POWER TO TAX they have virtually unlimited funds to outspend any efforts of companies and citizens who try to STOP stuff like this from going through!

    To be blunt, Amazon (and other companies) are also victims of this crap – not just we affiliates!

    SO be sure you direct your feelings to where the REAL problem is – not so much Amazon – but to the IDIOT LEGISLATORS that have allegedly good intentions (NOT) that end up hurting the very people that they are intending to “help”. VOTE THEM ALL OUT ASAP!

  27. says

    Jerry,

    Move your company to a different state that isn’t part of the “lets try what New York is doing” mentallity, or out of the country to the Camen. Eitherway, the states will lose and you can still be an affiliate and laugh all the way to the bank.

  28. Bob Gatchel says

    &JJ …

    Well … the FED is still in power my friend! The Senate voted down S604 (the Senate version of the House HR1207 “Audit The Fed” Bills!

    The point is (yet again) POLITICAL POWER is still VERY much in charge from the LOCAL to the NATIONAL level. As I said, entrenched political positions breed nothing but private interests that feed off the public.

    Again I say – VOTE EVERY INCUMBENT OUT and GET INVOLVED and LEARN YOUR HISTORY or you are doomed to repeat it!

  29. Don says

    Jerry, I live an hour East of you.

    Last week I sent Governor Perdue a letter explaining that I would be looking for a new residence while vacationing next week in Florida. That, while I didn’t do that much with Amazon, if all the other networks dumped me too I’d be broke. That it was better for me to find a safe harbor now before the full storm hit. And I explained to her how performance based advertising works.

    But it looks like the storm is hitting even faster than I expected.

    Would you mind telling me what other affiliate programs dropped you? Or, if that’s too much information, were they affiliate networks or private programs? I’m trying to get a feel on how wide spread this problem is growing. (email me if you need to)

  30. The CPA Kid says

    How come you don’t setup offshores, and run your business else where, so your not dealing with taxes.

    Then take a salary from your external company, and just pay minimal taxes on the money coming back in.

    There are many top CPA advertisters/Affiliate owners running this style. Works extremely well.

  31. Brian says

    I think there is a way around this Jerry, although, you’re right, we need to stop it right there in NC as the domino effect can be substantial.

    I’m thinking you have a “foreign corporation”, i.e., one incorporated outside your state and you’ve registered it with your state as a foreign corporation, and thus you’re doing business in NC even though your corp is incorporated in antoher state.

    If I’m right…why are you registered as a foreign corp? Typically the only reason a corp does this is because the state won’t let the corp sue on transactions that occur in that state if they don’t register. Is it because you have employees in your state? You might consider forming 2 corporations – 1 in another low tax state (like Texas – New and Delaware corps don’t have the advantages they used to), and one in NC. The NC corp is a vendor for the foreign corp and bills them for services. The NC corp doesn’t actually do ANY affiliate business, they just support a corp (your foriegn corp) that does in another state.

    Anyway, I’m not an attorney, so take my advice for what it’s worth – my 5 cents.

  32. Bruce in NC says

    As the tax looters progress, it’s no longer “creeping Socialism”, it’s now “running Socialism”, and it affects us all, not just internet marketers.

    I’m in, I’ll sign the petition, and do whatever else I can.

    It seems we are going to need some mass Civil Disobedience as it applies to our loony-bin legislators. So lets fight back.

    Let’s encourage every Employee to go to their Employer and raise their deductions to 10 or 12, to help stop feeding the brainless beasties.

    If you own real property, let’s petition to have our tax assessmenst lowered tom reflect the equity meltdown..

    Let’s use cash and barter wherever possible.

    Most of all, let’s VOTE THESE JERKS OUT.

    Let’s “Just say No”…to the looters. Legally.

  33. says

    No Dan, they aren’t asking the referring affiliates to collect sales tax – only that online retailers collect sales tax in states where they have affiliates.

    Since Amazon does not have an office or physical presence in North Carolina, they have not had to collect sales tax on sales made to North Carolina residents.

    The new law states that “affiliates” represent a physical location, forcing Amazon and other major retailers to collect sales tax from buyers in states where they have affiliates.

    This is actually a workaround to a tax collection the states have been unable to enforce to date, which is that the buyers are supposed to report and pay tax on products purchased from out of state vendors. Since they cant easily enforce that, they are looking to the sellers to do the bookkeeping for them.

    The dispute is whether affiliates represent a “physical presence” in each state. This is what Amazon is fighting.

    There are other things up in the air at the moment as well, including the proposal nicknamed the “iTunes Tax” which is a 4% tax on digital downloads. They are also targeting the top dogs (like iTunes, Rhapsody, etc) but could ultimately have a trickle down effect on info-product publishers, membership sites and other forms of “virtual products”.

    Jerry – I look forward to hearing any solutions you come up with. I have other friends who are going through the same thing in Rhode Island and NC.

    Best,
    Lynn Terry -TN

  34. Bill says

    Sorry to hear abut this Jerry. The same thing happened to me here in NY. NY has become an utter hellhole. Over the past month it has literally been a clown show in Albany. I would have moved away long ago but all my family is here. But even family is not enough anymore – they are now taxing everything they can think of. I’m headed south this year and am bringing my business with me.

    An example of this is a new MTA tax that went into effect this year. For years I had to pay NYC income taxes even though I didn’t live in the city – a so called commuter tax – but I still had to pay my local taxes as well. Here on LI taxes on a modest house can easily 10K or more a year. So I stopped working in the city but now I notice there is an MTA tax on my cell bill. The MTA runs the buses and subways in NYC. I am now also paying an MTA tax starting this year on all my income. I have absolutely nothing to do with the city or the MTA but they keep making up new taxes.

    Has anybody else wondered why all the states with the highest taxes like NY, Cali, NJ and Connecticut (blue states) also have the biggest deficits. They keep raising taxes but the deficits keep going up. It’s not that the politicians don’t understand, it’s that they don’t care. why should they? They never pay for their actions – we the taxpayers and business owners do. We are nothing but peasants in their eyes.

    We now have a man in charge of the IRS who didn’t pay his taxes but we’ll be put in jail if we don’t. The rest of the administration is also filled with tax cheats who to turn the entire country bankrupt blue state. It’s getting scary.

    Sorry for the long rant, I’m just really, really, really mad.

  35. See-be says

    Where I live lawmakers are just as ridiculous. To make matters worse, they will increase their salary and expense account, and they will hoist it on the backs of those who put them in place as if they forgot how they got there.

    What do you call a lawyer who isn’t skilled or popular enough to get a sufficient number of clients to make a living?

    A politician.

  36. Pamela says

    I guess I have to become nervous. I do not live in the USA but have a govt that follows to the letter whatever you (USA)do. We already have 69 cents in the dollar tax on higher incomes if you are not suitably structured.
    I guess they do not like the even playing field that the internet has created and want their slice of the pie to feather even more fat cat political lifestyles.
    It has never been do as I do , rather do as I say.
    Don’t like to be negative but have been wondering for a while what the govts will do to keep reign over their slaves. The internet is making too many of us independent and that will never do.
    When will they realize 0% of nothing is nothing. I guess we will all have to shift offshore. I can see a rising up of the tax havens again.
    Oh Panama , you are looking good !

  37. Georjina says

    Can someone explain this to me like I’m a 3 year old because this sounds really ugly.

    “The new law states that “affiliates” represent a physical location, forcing Amazon and other major retailers to collect sales tax from buyers in states where they have affiliates.”

    1. Amazon (WA) has an affiliate in Indiana.

    2. The buyer lives in Washington.

    3. The buyer must pay sales tax for Indiana because the affiliate lives there?!

    Maybe I’m missing the point here but isn’t that penalizing the buyer? If that’s the case, then
    where is the incentive to do business anywhere except
    outside the country.

  38. says

    Georjina,

    Let’s use New York as the example. Amazon is not located in NY, therefore prior to the law passed last year they did not have to collect sales tax from NY residents when NY residents purchased products from Amazon.com.

    NY residents are supposed to report products purchased from out-of-state vendors and pay appropriate sales & use tax on those purchases. But they either don’t know this, or simply don’t do it. In other words, the state is having a hard time enforcing it.

    Since Amazon.com has affiliates in the state of New York, the state is now considering that “a physical presence” – forcing Amazon.com to collect sales tax from NY residents when they make a purchase on the site. Basically collecting the sales tax on purchases the state has been unable to collect themselves.

    The internet has never been a “tax free zone”. There is a Dell facility here in TN, and so when I purchase products from Dell.com, I pay state sales tax on that purchase (because I am located in TN).

    Offline merchants – your local bookstore, for example – also must collect state sales tax on sales made to buyers within their state. They do not have to collect state sales tax on purchases made by buyers outside their state. So if a TN business ships product to CA, they do not collect state sales tax on that sale. But if they ship product to someone in TN, they do.

    Obviously they will have to revise this for offline merchants if they intend to enforce it with online merchants. Agreed? Ironically, there were local merchants in NC pushing for this new law affecting online retailers – obviously ignorant of the actual details.

    The real question up for debate is:

    Do affiliates represent a physical presence in each state?

    It’s not like an affiliate is actually a sales rep for the merchant – selling product locally. In fact, as an affiliate, I may never sell a product to someone IN the state of TN.

    I haven’t heard ANY talk of holding local merchants to the same standards regarding out-of-state sales. But of course who cares – since that would just send local dollars to other states, right?

    My biggest issue with this is that it is done right, handled fairly and ethically, and that what ultimately happens is LEGAL. That is going to require proactive involvement from every side…

  39. says

    Did you read the part in the pdf on page 270 and 271? It looks like they consider digital products tangible goods too. (read pdf page 270 and 271) Meaning, any digital access type product will be required to pay sales tax for NC residents.

    This seems to me that NC residents should be having a fit about this too. Basically they want to tax any internet purchase an NC resident makes.

  40. says

    This is why we need the FairTax.

    Taxation has gone to absurd levels, if our founding fathers were alive today they would be livid at what this country has turned into.

    Sign the petition and go to your Tea Parties lets stop this nonsense!

  41. Stephen says

    I signed your petition Jerry and stated in it:

    “I support this petition as a 1992 Supreme Court ruling that said retailers must have a physical presence within a state for that state to require sales tax collection. The decision says that Congress’s power to regulate interstate commerce implicitly denies such power to the states. It also held that only Congress, through legislation, could delegate broader powers to the states.”

    Now my rant.

    If you voted to give the Democrats the White House and a super majority in the House and Senate and you’re whining about the onslaught of new taxation and loss of personal freedom then I’m glad you’re now getting the reality check you so deserve. Unfortunately the rest of us also have to suffer the consequences of your, ACORNS, illegals, dead people & pets voting actions.

    The socialistic government many voted for has only been in power for 6 months folks! If the Cap & Trade bill the Dems are looking to push through (already passed the House) and the national Health care dream they want become reality then this country will be lost.

    Can someone please tell me one government run program that has ever been a success? Would that be Social Security? How about Medicare? Postal Service? NOOOOOO! Everyone one of those runs in RED ink. And so we should spend trillions more to create national health care run by the government which will cover only 50 million of our 350 million population! Oh and there are an estimated 20 million illegals in this country so they will make up 20 of those 50 million people.

    Sorry to be a downer, but the Dems will have the White House and super majorities in the House and Senate for at least 1.5 more years when we can at least take the super majority away from them. Unfortunately it may be too late as we’re only 1/4 of the way through their super majority strangle hold now.

    Welcome to “Yes we can” and “Change”. Many of us tried to tell people that the CHANGE the Dems were going to give us was Socialism and now it’s become a reality.

    Oh and before I forget just remember Obama has already said he’s going to let the Bush tax cuts expire which equates to a tax increase for “everyone” except the lowest class who don’t pay any taxes. Add that tax increase to all the others the Dems say will be necessary to fund their pet programs like National Health care for illegals and that will mean a bare minimum tax burden of at least 10% more then we pay now on all working Americans.

    Of course millions of us have already lost our jobs under this oppressive regime and many more will as businesses collapse under the the heavy taxation the Dems are placing on them because they represent the hated rich and need to pay their “fair share”.

    Redistribution of wealth. Isn’t Socialism wonderful!?

  42. mytanny says

    I agree with you, it is totally ridiculous. I understand what you feel. I am in Canada, so far we don’t have such tax, but who knows!

    As we know we have to work so hard to build our business to supplement the loss of our income. We find our way to live without bother any government.

    It doesn’t matter if they create laws to support our creative activities but on the other hand they create laws or troubles to damage our business.

    Online business is the best way to release the economic tense amount community.

    Good luck to all of us
    myTanny

  43. says

    CPA Kid – I will assume that stands for cost per action and not certified public accountant :)

    If NC pursues this bill, I believe they would view your set up as a tax evasion scam especially if you set it up specifically to avoid this tax.

    Now I am not a tax attorney so there may be legal ways around it. As he mentioned, his corporation is incorporated outside of NC yet he still falls into this category because he has an physical presence there.

    Based on the description you gave, he would still have a physical presence there so his off shore company would now have the obligation to collect and remit the tax to NC. So while his revenue would continue his headaches would multiply significantly.

    The easy answer is to move but that may not be possible for a variety of reasons. The best answer is to do what he is doing and stop the insanity being driven by our state and federal government.

    It will be interesting to see how other affiliate driven companies respond to this.

    Good luck in your fight for limited government.

  44. Todd Harmon says

    Many people wonder what they can do to stop this madness in government. My buddy over at freedomspeaks.com has solved this problem. Once you sign up for an account it looks up all of your elected politicians. Then you can click a button write them all a letter and hit send. It emails/faxes you letter to all of you elected officials in just a few click.

  45. Jim says

    As Dickens said, “the law is an idiot.”

    This is why companies relocate outside the US to business-friendly places like Malaysia, Singapore, Thailand, China, Panama, and the like.

  46. Trek says

    It’s going to get worse. Much worse. There are predictions of complete collapse of commercial real estate — 11 of Trump’s companies are seeking chapter 11. Dollar will be worth nothing. Tax riots, food riots. Federal Reserve just keeps printing money like there’s no tomorrow. Dollar’s gonna tank. Followed by Euro. Some banks in Germany are leveraged 1:114 — unbelievable. Fasten your seat belts. I could be like never in the history of mankind. And the amount of money they hope to reap from affiliates? Drop in a bucket of national debt of some 12 trillion (some say more like 57 trillion).

  47. says

    This is exactly why we need to move to the FairTax system. You keep what you earn and are only taxed on what you consume. The states and federal government will collect more money and we’ll pay less taxes. Best of all there is no where for anyone to hide from taxes, everyone pays their fair share: off shore companies, illegal immigrants, drug dealers, etc. Citizens will get much more transparency to government and be able to see if they’re getting their fair share since everyone is paying the same 23% tax.

    This progressive income tax system is ridiculous, the more they tax under this system the less incentive people have to save and invest. Worse of all it encourages debt.

    The big issue in America isn’t a national health care plan, its the meteor known as Social Security that setting to hit us in the very near future. Combined with our federal debt; absurd VISA laws for qualified, educated workers; and poor education system and you can pretty much say you’ll live to see the end of this (crumbling) empire. And BOTH sides of the aisle are to blame, this isn’t a liberal vs. conservative issue, both parties have spent INSANE amounts of money whether it was on wars and military weapons or social programs.

  48. says

    “This is double taxation. How can they tax the merchant for the sale and tax the affiliate for the same sale??? Some lawmakers are too stupid to fix their own problems by reducing costs so they try to double tax people. I don’t suppose they would ever consider a pay cut or doubling their own taxes???”

    That is not at all what is going on. Go back up and read my earlier comment replies.

  49. says

    @ James: This is not going to be an issue with drop shipping because YOU are the one making the sale instead of the one REFERRING the sale. The best example I can give you is if you lived in Texas and you recommend to your friend in Oregon to buy a Ford Mustang and they do. Texas would petition Ford to pay them sales tax for the amount spent because you live in Texas and you made the recommendation.

    @ Brian LaFrance: Well said. I will tell you this, I will be voting against every incumbent in the next election and I will be moving my business out of North Carolina ASAP. No more tax revenue for them.

    @ Don: I’d rather not disclose the companies because they are all private companies (I’ve been doing this long enough that I don’t work with networks anymore). Bev’s office received my professional complaint and “first grade math lesson” that 7% of zero is still zero. I wish I could threaten to move, but it is too gorgeous here to leave. :-)

  50. Kevin says

    “Oh, and btw, my wife and her immediate family lean to the liberal side. Of course my opinion is they only see the benefits of having a liberal government.”

    There are benefits to having a liberal government?

  51. Jim says

    You’re right Brian, they don’t realize it. And you’d better pray that they keep not realizing it. Politicians are parasites by definition. The less they know, the better. Just use your brain to get around their desire to sink their teeth in your neck.

    As for offshore business, don’t just get an attorney–get a proven specialist, an expert. Would you go to a GP for heart surgery? Preferably, abroad. Ask around.

  52. Kevin says

    “And BOTH sides of the aisle are to blame, this isn’t a liberal vs. conservative issue, both parties have spent INSANE amounts of money whether it was on wars and military weapons or social programs.”

    That’s like saying the thief who steals a pack of gum is just as responsible as the murderer who killed a dozen people.

    Liberalism IS the problem. Spending on nanny state social programs dwarfs the money spent on wars and national defense, yet only one is actually mandated by the Constitution.

  53. jeffrey says

    well, there is some truth in this, however if you reside in a different state there a legal issues, not to mention you will not be able to build any serious business relationships or credit with the kind of questionable legal structure you are talking about. D&B will eat you alive on this if not done properly.

  54. jeffrey says

    my above comment was in reference to the person that said to just run out and form a Delaware corp. Possible, but not as easy as it sounds to do properly.

  55. says

    @ CPA Kid: That’s not how it works. Merchants don’t look where you are incorporated, they look at your phone number and where the checks are being sent, or the bank where the wire transfer is done. Bottom line, if they call you or mail you and the destination is the affected state, you are screwed.

    @ Lynn Terry: Always a pleasure to hear your take and thanks for posting. Hope to see you next month @ SN Live. I spoke with my attorney for over an hour this morning. We are going to try a solution that he came up with, but I don’t know if I will post it publicly as I don’t want to have the “wrong eyes” see it. :-)

    @ Bill: That is a great (but sucky) story of the MTA taxes when you don’t live or work in NYC. That would drive me nuts.

    @ Collette: Did I read page 270? Um, no. But thanks for pointing that out. That really, well, sucks. Charging sales tax for ebooks. If that is true, how screwed are many of us? I think it is time to run for the hills, no? Still down in Florida?

  56. Jim says

    Do affiliates represent a physical presence in each state?

    An affiliate is essentially a commissioned salesperson for a company. The internet question is irrelevant. If the seller (not the commissioned sales person) is in State X and the buyer is also in State X, the merchant must collect the sales tax. The affiliate’s commission–and the efforts he took to earn it–is not relevant.

    As Lynn Terry said, what is being attempted is double taxation.

  57. J.J. says

    The solution, ladies and gentleman, is to no longer feed this animal. Do the following:

    Register a company in Hong Kong and bank out of Cypress, which is an EU country (and works with the EU banking laws). When registering your company, get an anonymous credit/debit card from the Cypress bank and go from there. Neither Cypress or Hong Kong will work with the US authorities.

    Of course, I am sure big brother now will have retina scans at every ATM soon so, I guess this won’t work either, LOL. Your rights are being taken from you! And no one is fighting for it! Sad days indeed!

  58. says

    Hi Jerry!

    Just heard about your recent experiences from Lynn Terry. Sorry to hear that but unfortunately, I believe us affiliates are gonna be enduring even more pain down the road.

    I’m from RI, and I’ve received some termination emails also. So I have an idea of what you’re going thru. ;-)

    Oddly enough, most of them are from the bigger merchants that sell physical products, Amazon is one of them.

    I’m relatively new to affiliating with merchants selling tangible products, so it hasn’t hurt me financially as bad as many of my online friends have been hit.

    This “the affilate is a physical presense for the merchants” is a crock of …

    But the “fallout” is STILL happening and I’m certainly concerned about what’s next. Soooo …

    I too, have been talking with one of my “legal eagle” friends to have a viable option to pursue. The options are there but they can and most probably will differ for different folks. And they certainly NEED to get legal guidance before they do anything drastic.

    Hope your legislators get it right down there, but it’s just too easy for them to just do it and then repeal it down the road if the courts later rule it unlawful and slap their hands.

    I will be following your blog to keep up with what’s happening.

    Best To Ya, Jerry!

    Rick Wilson aka CorpRebel 8)

  59. Erika Preuss says

    Jerry, We are only supposed to be smart enough to work “for the man” not “for ourselves.” Those of us smart enough to earn a good living outside of the corporate system, really worry Gvt. as a whole, because we are outside of typical controls. This is just an attempt to regulate and control internet income in an extremely uneducated way. Lawmakers creating these laws, frankly, are not well-educated in how affiliate systems work. They are making laws to attempt control and regulation to generate more income for the states, not realizing they are actually putting business owners in their state int he position of moving to keep their business, and losing those taz dollars all together. The REAL question is, WHY? Because the states are going bankrupt – and making their laws based on that fear. Here is an article showing how many states are currently on the verge of collapse, it’s not just California. I would look for more of these laws going into effect as states seek ANY method to generate more taxes to save themselves. http://www.examiner.com/x-9341-Manhattan-Headlines-Examiner~y2009m7d1-California-five-other-states-face-government-shutdowns

  60. Ted says

    J.J.: Register in the company in Hong Kong; bank from EU (Cyprus); and live outside the US–not in Cyprus or Hong Kong. Get a second passport while you can. Read the writing on the wall.

  61. says

    Jerry,

    Living in Tax Hell – aka Oregon – hey new taxes? Get used to it. The liberals here find new ways to tax us every day. Our governor is delaying signing a new tax bill so ballot measure petitioners will have less time to get signatures to place a measure on the next ballot to get rid of it. What a man of courage and leadership.

    Now that the liberals are in control you can expect more taxes like the Amazon tax and it will continue until these crooks get voted out.

    As near as I can tell with my research, the tax bill in North Carolina was Senate Bill 311 and all No votes (only 23) came from Republicans. Maybe it’s time for all us incredibly sophisticated high tech people to rethink our political alliances.

    The politicians who are passing these tax bills don’t care about you or your business. They care only about their own personal lust for more power. Everything else is irrelevant.

    The overspending, the absurd laws, the poor decisions are the result of the politicians greed for power. And… the result of voters who were stupid enough to elect these politicians to office.

    Scott

  62. says

    The Petition as shown in the blog post is to build a petition that will follow state to state to help prevent the bill to be passed. Although it state NC it will be carried to the other states. Help make it viral and hit 10,000 and we all might have a start to a fighting chance.

  63. says

    Hi Jerry,

    I caught up on this news just this morning while listening to the latest Internet Marketing This Week podcast, and then I came home to find the email from you. And I to make most of my income from affiliate commissions. As I reside in Massachusetts I’m wondering how soon before it comes before the state house in Boston.

    Despite the fact you’re facing a 40% drop in income you took the time to send out an email and I appreciate that from you.

    Thank you,

    Cliff

  64. Dan Hughes says

    As a fellow NC resident this is something I have been dealing with since the end of last month.

    It really is a living hell. Just as Jerry said, you wake up one morning and your state government is trying to put you out of business.

    I have *personally* called all the bill sponsors in the house and in the senate and NONE of them have returned by calls. NONE! I have called all the members of the finance committee and the only person who returned my call, was my representative, who happens to be a member… I’m guessing he’s covering his a$$ for the next election season.

    At this point, this only option I can see, is to move and my kids out of state.

    Rock Hill South Carolina, here I come! … I just threw up in my mouth a little ;)

  65. Sam says

    Media brainwashed Americans keep thinking in terms of “liberals” and “conservatives.” You really don’t get it. You are caught between Scylla and Charybis, the plaything of those who manipulate you with just those stupid labels which switch off the brain and prevent you from seeing objective reality.

  66. Robert says

    Jerry, thanks for letting us all know about this scenario. It’s another perfect example of how incorrect thinking leads to incorrect actions.

    I am also sorry for the difficulty this brings on you financially. However, I know that you will use this as a “stepping stone” and not a “stumbling block” so that the end result will be for your greater good.

    We all appreciate and respect your voice and honest opinions within the Internet Community.

    I ask that you and everyone else, not allow this present and pressing scenario to negatively charge your mental and emotional energies. Doing so will have a negative impact on your immune system, your blood pressure, and numerous other factors.

    Instead, clearly visualize a practical outcome that will open peoples minds to what is really happening and prevent this from happening again in the future. Then, be thankful and grateful for it.

    Responding in this manner will put the negative charge in check, positively charge you mentally and emotionally, and enable you to clearly “see” how to truly deal with this scenario.

    Strength and Honor to you Jerry

    Robert

  67. JJ says

    Jerry,

    This was always going to happen. The Govt’s job is to grab as much tax as possible from as many marginalised groups as possible (groups with little political influence).

    Unfortunately, in the current environment where almost all the Govts are broke or heading down that path fast… this sort of thing will only get worse.

    Unfortunately, the only LONG-TERM solution is to move to a tax haven or some sort of a less intrusive country which rules out most English-speaking developed countries (i.e. US, Canada, Aust, UK, NZ).

    Having said that, this may/may not won’t work for US citizens because you pay tax on citizenship… which certainly applies to income tax but not so sure about applicability of such state-based taxes.

    It seems that these States might not be collecting the Amazon tax after all, if there are no affiliates left.

    The noose will continue to get tighter…

    JJ

  68. Bill says

    Although I am not a resident of NC. I filled out the “Suggestion Box” form. You are correct. We need to stop this now. The states that have done this are also the states with the most mismanagement and fiscal irresponsibility. It amazes me how many people (voters) don’t have a clue about what is going on. They are not informed, do not connect the dots, don’t bother to ask questions, and just trust politicians to handle everything. Big mistake!

    The government will take care of you from cradle to grave in certain places, but who wants to live in North Korea?

    There are some good politicians. Well aren’t there? There must be at least one. Off hand I can’t think of any, but it’s been a long day.

  69. Eric says

    Not sure why there are references to moving to Florida. Thank god we don’t have a state income tax, but we certainly do have sales tax and there is no assurance they wouldn’t do the same thing down here as well as I know. The state budget is not bankrupt like California, but darn close (which scares the heck out of me as my day business is as a contractor to the state). I can easily see the same blind logic happening down here. Our representatives have done some pretty stupid things in the past.

  70. Virtual Office says

    >>Merchants…look at your phone number and where the checks are being sent, or the bank where the wire transfer is done. Bottom line, if they call you or mail you and the destination is the affected state, you are screwed.

    Seems there must be more to it than that though, otherwise affiliates in affected states would just do what newbie screenwriters living outside LA have done for years–they rent a “virtual” office complete with LA phone/fax #’s and just retrieve their messages remotely or have it forwarded and the caller is none the wiser. They even setup a physical LA mail stop where their mail is then periodically forwarded to their “regular” mail stop.

    So, if it’s just the contact/mailing/bank location on record with the merchant that matters here, seems affiliates could just get one of these “virtual offices” setup in the “unaffected” state of their choice. Seems getting a bank acct in a state in which you don’t live shouldn’t be hard either…I set up a secondary one with an online bank and they aren’t in my state. You would then transfer over funds to your “regular account” as needed. :))

    At least I’d try it before I moved out of the country. :))

  71. says

    I already wrote in the same spirit on the Geno Prussakov’s blog, but wonder what people think about that angle of attack? How about a letter like this?

    To: Honorable …
    Cc: Local newspaper

    Honorable …,

    As a voting citizen I wonder, why does the State Legislature wants to rob our State budget of so much needed funds?

    You see, I am talking about proposed Affiliate Tax, that become so big source of income for our State citizens that it have caught an eye of legislators as a potential source of budget income.

    Every $1 earned by a NC affiliate and spent in the state brings about 4.25 cents to the state budget in sales tax once the affiliate spends it. And that’s not counting income tax he will pay. Then, it is paid by merchants to the local employees as a salary bringing more money, and once they spend it, adding to the state budget as even more sales and income taxes.

    Proposed Affiliate Tax already forces some vendors to discontinue their relationships with NC affiliates (are you aware of Amazon.com decision?) It will also force many of affiliates to quit and seek other income opportunities or move out of state. As a result, we can safely assume that the taxable base may be reduced in times as a result of the Affiliate Tax introduction. In fact, in many cases it will reduce it to zero.

    To put it simple, in effect, Affiliate Tax will significantly reduce budget income from this popular and important business in the North Carolina state.

    Compare 4 cents and 0 cents. You don’t have to have Ph.D. in math to make teh comparison. Why State Legislature wants to rob our State budget of so needed funds in the dire times like now?

    Sincerely,
    …

    Also, I am wondering if such tax has a viral nature like GNU Software License. Assume that NC afiliate creats a company in NV. Amazon has not way to see, that he’s actually NC resident, but from NC point of view that will create nexus that will force Amazon to collect and pay NC sales tax. Outcome? Can Amazon deal with ANY affiliate without that risk at all?

  72. says

    Thanks for the great comments and support everyone. It is most appreciated. I wish I could respond to each of you personally. Remember, this has less to do with the tax and more to do with the OUTCOME, which is merchants are cancelling accounts. Whether the tax is right or wrong is not the debate. The debate is what is the effect? Simply put, it will put affiliates out of business or force them to move. Either option is not good as it removes hundreds of millions in revenue from the state.

    It is a shortsighted bill.

  73. says

    Thank you for letting us know about this law. We are being bombarded on all sides lately. It seems our local & national government would rather have us hanging onto their purse strings than making a living for ourselves. I could go on & on, but I’ll spare you.

    I have signed the petition and sent a comment to the Governor. Hopefully she will stop this bill in it’s tracks and prevent other states from trying to pass something similar.

    Hopefully it makes a difference,

    Marilyn

  74. trebuchet says

    I don’t mean to downplay the importance of this news, especially because I live in NYC and already had to deal with this, but the situation honestly reminds me of 2003-2005 in the online gambling industry (if you were involved with that).

    Anyways, it could always be a lot worse as history has proven.

  75. says

    After seeing this I wrote to all of the state representatives and senators for my district (figured no one else would pay attention)so far I’ve received a reply from all but 1 saying that they are opposed to this bill.
    I even sent a message to the governor’s office. other than an auto response, no reply there yet.

    As this has not been passed yet take the time and let them know how you feel BEFORE they vote. Let the Governor know as well- she has the power of veto just in-case it passes!

  76. BG says

    @ Virtual Office

    >> “Merchants…look at your phone number and where the checks are being sent, or the bank where the wire transfer is done. Bottom line, if they call you or mail you and the destination is the affected state, you are screwed.”

    Seems there must be more to it than that though, otherwise affiliates in affected states would just do what newbie screenwriters living outside LA have done for years–they rent a “virtual” office complete with LA phone/fax #’s and just retrieve their messages remotely or have it forwarded and the caller is none the wiser. They even setup a physical LA mail stop where their mail is then periodically forwarded to their “regular” mail stop. <<

    I established an LLC a couple of years ago in my midwestern state of residence (to handle consulting work I do personally with clients mostly in my own state). To get a bank account in my business name required a physical address in the state. A PO Box wasn’t enough. I used my home address which is the day-to-day business office address. But you might try using the physical address provided by your business’s Registered Agent and see if that will work. You’ll have to pay them for mail forwarding, though which is about $150 a year.

    I had also set up a DE LLC and was able to get a local bank account in the midwest for it by providing my home address and showing that it was the the business’s operating address (while the Registered Agent remained the DE address of the company that set up the LLC).

    So it’s clear that you can have a convenient local bank account for a company incorporated in another state. Has anyone formed a business in a state where they do not live — and been able to open a bank account in that state based on the address of their hired Resident Agent?

  77. Sheila says

    Question for those who oppose sales tax. I certainly think it’s a mess, double taxation, arbitrary, etc. and treats different groups of buyers unfairly.

    Let’s say every state decided to broaden the definition of “physical presence” or they all just decided to cut the middleman and begin requiring the collection of sales tax for every transaction involving a state resident, regardless of the merchant’s location?

    It would certainly an administrative burden for every Amazon, Lands End, etc. to collect sales tax from every buyer, in differing amounts according to their location.

    So what’s the alternative? (I doubt that suggesting all states simply give up sales tax revenue would get very far.)

    One option would be to enforce the buyer’s tax obligation by collecting a social security number with every transaction. At the end of the year, the merchant would report the amount to the states based on the zip code associated with the SSN.

    I could also see setting up a system where online sales carried some nationally standardized sales tax amount that every year got returned to the states based on some fair factor such as cost of living, population, etc.

    That’s if we had to have a system where transactions are taxed at all.

    In a system where no transactions were taxed, how would the revenue be collected? All through income tax? Would people consider it fair, once tax time rolled around?

    (I’d personally favor that because sales tax is rather hidden.)

  78. says

    The way out of this situation is, as an affiliate, to create a virtual “you” in another country. It’s easy – I do it all the time. Well, not easy-peasy, but easy enough for anyone who’s motivated.

    To register as an affiliate and also be paid outside the USA, all you need is a virtual office in another country. I live in New Zealand and Malaysia – yet maintain a virtual office in Australia. When I register as an affiliate, which I do from time to time, I can quote one of my virtual addresses.

    There are many virtual office solutions – providing you with a PO Box, a street address, mail forwarding, even phone number (or use Skype-in). If the affiliate programme pays you by cheque, then such is simply mailed to your virtual office – when you have it forwarded to where you actually live.

    Once you are deemed to be living somewhere else – not in one of the tax-offending zones – then your affiliate earnings are safe. And if you want to – you can even move your income offshore as well.

    But that’s another story.

  79. Dave says

    Jerry –

    Got an idea for you.

    David MacGregor is on the right track … but given the way statutes are constructed (broad brush) here in the US, anyone using a virtual setup would likely be at risk.

    I live in Vegas (32 years) and I’m confident that NV will NEVER undertake this scam. As you probably know, NV is arguably the best place to have a LLC or incorporate.

    Here’s a way to get right back in action and not only beat the Amazon tax — but also beat NC’s state income tax? Legally of course …

    All you need is a friend in NV. You can use your friend’s address and legally claim it as your primary residence … and NC as your secondary residence. Just come out here and get a NV driver license and plates. DONE. All the better if your LLC is also here. Mail can easily be worked out — and you can renew your license and plates online in NV.

    Check with your lawyer, but I’ll bet that there isn’t a damn thing NC can do about it. If I were in your shoes, I wouldn’t hesitate … and come tax time – I’d need plastic surgery to remove the smile while screwing NC out of state income taxes.

    Dave

    PS – GBP is the best value for the money that I’ve ever seen. Many thanks.

  80. Tyler says

    What JJ just said is right on the money.

    I love affiliate marketing. I love what money can get me. But it’s time for people to start getting their heads out of their @sses and take a really good look to what is happening around them.

    Things will only get worse as far as making money on the internet is concerned. This goes way past the level of just affiliate marketing. This is just one of many wake up calls coming our way very soon.

    I bet you pretty soon that the government will start taxing every email we send too. They are already talking about regulating the internet as we speak also. And that’s their plan…

    Us Americans take for granted everything that our founding fathers fought and died for. This has nothing to do with puppet politicians and the false right vs left paradigm. This has to do with elitist bankers who run the show from behind the scenes.

    Don’t believe me? Here’s a quote from good ole Thomas Jefferson:

    “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

    I hope everyone reading this will step up to the plate and take a stand and do their part by signing this petition. This is getting way out of control.

  81. Dave says

    Follow up … claiming NV as primary residence.

    Just to clarify – NV has no state income tax. I got curious and checked NC’s rate. What a rip-off! *8.25%* if you make $120,000 or more! People with lower incomes are also getting screwed with 7 to 7.75 rates.

    When it comes down to protecting your personal freedoms and business … NV may be the last state standing.

    Jerry – If you use the idea I described above, your problem is solved without uprooting your personal life in NC. Other than that, just move here. In any event – with this dramatic loss in business – and a 8.25% income tax you could drop … it’s time to flip NC’s politicians the bird.

    Dave

  82. Martin says

    I signed this petition also.
    And to all you conservatives who need someone..anyone except a republican to blame lets not forget who was in office when this mess started, where were your complaints then?
    I am independent, which to a conservative is worse than a democrat, someone who actually votes his mind instead his party.
    I am definitely becoming more anti-conservative every day.

  83. Michael Hart says

    Jerry, I’m really glad I came across the article. I have been talking about it all day, tweeted your link to sign the petition, and wish I had a legislator’s blog to bitch at lol

    On a side note I love your stompernet content. Keep up the good work. If I open an office in Costa Rica I’ll have to hire you if I don’t learn all your strategies first :)

  84. says

    I live in Arizona. I’m really sick of the “liberal”/”conservative” buzzword crap. It’s not a matter of which party these politicians belong to. The problem is that most of them just don’t read the bills they sign into law. It happened here with the ‘alt-fuel feasco’. It happened in Washington right after 9/11. That’s how Bush was able to change so many laws so quickly — nobody read them before they signed them into law!
    Maybe that’s what’s happening again. Nobody reads the damn things before they sign them and we (the people) get stuck with the aftermath.
    And just to be clear about the economic mess we’re in right now, Clinton, a democrat (read that as liberal) ended his presidency with a huge monitary surplus. Bush (read that as a conservative) ran that into the ground trying to steal another country’s oil and punish its leader for trying to kill his daddy. Selfish reasons that were covered up with lies to drive us into a war we never should have started. (Those planes were manned by Saudis, btw. We didn’t attack Saudi Arabia, did we…..)

  85. Carol Sanders says

    This is an outstanding blog! I really wish that someday I could have a blog that is as well made as this..

  86. Ruthanne Lawer says

    It?s really all about choices that we make when it comes to appearing and feeling satisfactory. Excuses merely come when someone has a priority that is higher. The challenge comes when something else comes on that affects your wellness, then you have to reassess and calculate out?for you?what is the most essential.

  87. Philip Mansour CPA Marketing Expert says

    as far as i can see the government want to get a piece of the affiliate. However; they don’t even know what we are going through to get our internet marketing off the ground.

  88. Gene says

    I have been hearing rumors through the years that the higher powers were going to do something like this. I guess we must take some of the blame because we put them in office to cut our throats. Now that we have put the republican party in charge they needed to look for ways to fund their mandate of giving the top 2% their tax cut. So lets hope that the affiliate marketing business can prosper well beyond this setback and I am sure there will be some white hat loop holes to get us through these trying times, Good luck and prosperity to all that are in the internet marketing business.

  89. Oleksiy says

    There are tons of affiliate websites, but one that definitely stands out is T3Leads, which gives a complete explanation on what is affiliate marketing and how you can benefit from it. You can find more there http://www.t3leads.com/

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