Tax Sales Legislation will Changes the E-Commerce forever.

Will this affect affiliate marketer's in any way? I like being the middle man, and simply making a commission, when my traffic buys something. I assume this will only affect the company actually selling the product? I don't like it, in any case, but just curious.

A tax like this would kill many small businesses. As you know, many sellers on Amazon have to cut into their profits to be able to compete with the multi-billion dollar retailers. A seller on Amazon could easily make a 10% profit, while major retailers can make 47,100, even 300% profit off the same product. On top of that, sellers on Amazon have to pay affiliates 4-6%. Affiliate programs in those states were scrapped, because the sellers could not compete and pay affiliates at the same time.

Here in Ohio we pay an 8% sales tax, so if you add $8 to every hundred dollars spent, you will end up with a crap load of abandoned carts.

This can only benefit major retailers, who can can absorb the sales tax with it's buying power. Small businesses or individual sellers, cannot afford to lower prices anymore, to be able compete with billion dollar retailers. They also cannot afford to buy 100k or a million units to drive their cost down.

They may say there is a million dollar exemption, but a million dollar in sales, does not mean a million dollars in profit. Businesses can do a million in sales and only bring in 100k or less.

This legislation is aimed at sites like Amazon, where small businesses flourish. I would be interested to see who first came up with this piece of legislation, and see who were his/her campaign donors. A tax like this will do more damage than good, and put more money into the pockets of the big retailers.

Legislators will use tax revenue as an excuse for a 17 trillion dollar debt that will never be paid off, and make a ton of more money for their campaign donors.

$1M per what? Is that the TOTAL you sell through PayPal or per customer or per transaction?

I wouldn't be ok with the bill just because of this fact. This is the way Washington sets a trap. If they put the $1M number on that business, that number is NEVER going up and more and more people will walk right into it (see AMT).

You never want to give the gov't a new revenue source because it will only get bigger. If you're lucky enough to have a toll-way in your state, you can see why it's a bad idea.

You may be assuming too much.

How many people rejoice every year over the "tax refund" the "government gives them"?

Of course calling it a 'tax refund' instead of 'returning money we confiscated and used interest-free for a year' might have something to do with it... :p