Can Affiliates Survive Internet Tax?

Let’s face it. The Internet Tax is coming. When you see tech websites argue for such tax, you know the writing is on the wall. Unfortunately, the country is spending more than it gathers in revenue, which means someone has to pay the bills. Internet tax bills have been brought forth in the past and defeated in some cases (a couple of states did pass them). The Mainstreet Faireness Act that was introduced by democrats just recently will allow states to impose sales taxes on online sellers/retailers. That means only one thing. A lot of affiliates are going to get the shaft if such a bill passes. I happen to agree with eBay’s take on this:

Year after year, supporters of increased Internet sales taxes recommend legislation that would impose significant new costs on hundreds of thousands of online small businesses and e-commerce entrepreneurs, which is sure to harm the economy and kill small business jobs.

Unlike eBay, I am not confident of anything when it comes to this bill. This is the perfect opportunity for pro-internet-tax crowd to pass this legislation and bring a whole new reality to light for thousands of affiliates.

Bill Synder did his best job to promote Internet tax. Of course, he did not make any new points nor did he talk about the necessity to cut some of those expenses instead of killing small businesses. The Internet has given plenty of small businesses and affiliates the chance to stay afloat in these tough times. Internet tax may bring more revenue to states in some ways but it will kill businesses that pay taxes to the states too. No one seems to take that into account.

Politicizing Internet tax is a waste of time. As an affiliate, I am preparing myself for the worst. This is the time when affiliates need to pay more attention and start creating their own products. Times are going to get tough for those who rely solely on Amazon, eBay, and other e-retailers to make it as affiliates.