So today I received an email from Amazon stating they are going to terminate relationship with Illinois affiliates because of this tax scam the Illinois state legislature has passed. The way I see it the Illinois law makers are giving affiliates the middle finger. Amazon did that with other states that passed this law and rightfully so.
Here is the email:
Greetings from the Amazon Associates Program:
We regret to inform you that the Illinois state legislature has passed an unconstitutional tax collection scheme that, if signed by Governor Quinn, would leave Amazon.com little choice but to end its relationships with Illinois-based Associates. You are receiving this email because our records indicate that you are a resident of Illinois. If our records are incorrect, you can manage the details of your Associates account here .
Please note that this not an immediate termination notice and you are still a valued participant in the Amazon Associates Program. But if the governor signs this bill, we will need to terminate the participation of all Illinois residents in the Associates Program. After that point, we will no longer pay any advertising fees for sales referred to amazon.com, endless.com and smallparts.com nor will we accept new applications for the Associates Program from Illinois residents.
The unfortunate consequences of this legislation on Illinois residents like you were explained to the legislature, including Senate and House leadership, as well as to the governor’s staff.
Over a dozen other states have considered essentially identical legislation but have rejected these proposals largely because of the adverse impact on their states’ residents.
Governor Quinn’s office may be reached here .
We thank you for being part of the Amazon Associates Program, and wish you continued success in the future.
This tax law is absurd! We need to fight back! This is NOT going to get the state any extra money.
Here is what’s going to happen:
1. The online retailers drop their illinois affiliates so no sales tax will be gained at all
2. Illinois is going to lose money because the affiliates will lose their income they are currently earning with merchants like Amazon, Overstock, and more
3. Affiliates earning a substantial income with those merchants will now move to a different state leaving people working for them out of jobs!!!
So what’s the point of this law?? Makes no freaking sense at all. Is the state so desperate for money? They need to find a different solution because this is not going to work for them like they think it will. So many people will lose income they count on every month it’s ridiculous! (I wonder if they can sleep at night after passing this law?)
Are those politicians brain dead nowadays? (I was going to put an image of some monkeys here but they actually have brains :))
You should contact Governor Quinn and tell him what you think about it. You can reach his office here.
So they are trying to say that brick and mortar businesses in the state of Illinois are taking a hit because consumers are now spending more money online. SO??? Get with it then too! Set up your store and run an affiliate program like Amazon. This is 2011! I don’t remember buying anything at local stores besides clothes lol. So are we supposed to stay in the stone age because offline merchants can’t keep up with the changes? Get real!
In my opinion the tax law is a scam and rarely say that about anything.
The only thing that the state of Illinois is going to see is my middle finger when I am taking off at Midway airport 🙂 because I am moving if this law comes into effect.
How to Beat the Illinois System:
Set up an LLC in Indiana! You do not need to be a resident. Get a PO Box there, get Quickbooks (For Tax Documentation Purposes) and establish yourself as an employee of your company. This way you only receive a pay check from YourBiz LLC and the actual commission based income is being made by your company. You will still have to pay income tax on your Pay Check, but the unconstitutional sales tax will not be your problem and you will be able to continue to promote Amazon products.
Maybe this won’t get passed but if Governor Pat Quinn chooses to screw us anyway, just keep in mind the solution above. It’s not Tax Evasion… You will still be paying your taxes as a resident.
I verified this solution with a few credible sources and it’s legal