Amazon drops CT affiliates because of new tax rules.

[Atman]

I got an e-mail from Amazon this weekend stating that because of the recently-passed law requiring online retailers to collect sales tax even if they don't have a physical presence in the state, that my Amazon affiliation would be terminated. They will no longer allow CT residents or online businesses to take part in their affiliate program. For those not familiar, their program allows you to set up a virtual store online. You can design it yourself, and offer the line up of products you choose, be it hardware, books, clothing, whatever, and the sale actually goes through Amazon, at which point you earn a commission. It allows a small business to expand its product offerings online without having to commit to actual inventory.

I didn't make enough off the program for it to matter to me, as I've been employed full time for over four years now and no longer keep my website updated, but I do know people who rely on this program for a certain part of their income. Not sure if this will work out to be a boondoggle. You can't collect a tax on sales which are no longer being made. It seems all the new online sales tax does is force people out of business without raising any new revenue. How is that helpful?

.