Mr. O’Malley,
I know you’re a busy man and more importantly, I know that a message like this will never reach your hands. Why? Because it’s “not your problem.” Maybe your social media team doesn’t deem this message important enough to actually get to you. Maybe they don’t deem *anything* important enough to get to you. I’d like to state for the record that just two days ago – March 13th 2012 -you posted your message regarding job creation. Just yesterday SB 523 was amended to include the “Affiliate Nexus Tax” – legislature that was written, phrased, voted on and passed by people who not only didn’t take the time to understand what it was going to do (as proven in every single other state that has passed it) but also didn’t understand it in the first place.
I understand that times are bad. I also understand that everyone is trying to find every way to make enough money to carry on. This is why I have this single question for you: Why are you allowing for people to not only guarantee that the state will make less, but forcibly removing people’s jobs – their source of income, their income in general, or their life’s work? Since you’re a busy person, I’m sure you have no idea what I’m talking about – so I’ll provide a 30 second rundown for you. Well, a 30 second rundown for anyone else actually reading this. I mean let’s be honest. What’s a few thousand jobs to the Governor right now? We’re up 39,800 jobs after all right? We’re still net-positive on job-growth as per those numbers.
The Affiliate Nexus Tax is a way for the state to put sales tax on internet retailers that sell in their state. But only if an “affiliate” (see: me + roughly 4000 others) refers someone to the company for the sale. As a result of that sale, I get a “commission” from the company. I don’t represent the company. I don’t work for the company. I don’t have any ties to them, and they don’t give me job perks at all. I don’t work static hours for anyone but myself and that’s if I work static hours to begin with. The Affiliate Nexus Tax gives companies two options, and I want you to pay close attention to these two options – because I’m going to give you the complete truth.
A) Start charging sales tax in a state that they have no physical presence in (see: unconstitutional).
B) Terminate the relationships of all affiliates in the state so they can no longer “recommend” people to their products, and then continue to sell in the state anyway – without charging for taxes.
Which do you think a retailer will do? Which do you think that Amazon.com would choose? Here, I’ll make it even easier for you:
California:
http://jan.ocregister.com/2011/06/29/amazon-terminates-deal-with-25000-calif-affiliates/60971/
http://www.ocmetro.com/t-Amazon_terminates_Calif_affiliate_contracts_due_to_sales_tax07_01_11x.aspx
An example of what happens when the Affiliate Nexus passes in a state:
http://www.fatwallet.com/forums/fatwallet/1063898/
http://www.nytimes.com/2012/01/26/business/smallbusiness/drive-to-tax-internet-sales-harms-affiliate-marketers.html
The rest of the companies and people are simply out of a job. I want to point out something for you, Mr. Governor. That was one entity. That wasn’t a person, or someone sitting in their mom’s basement making $50 a month. It was a living, breathing, computing and “life’s work” type of business. Which was FORCED (yes, I said and mean forced) to move their entire business (and employees!) out of state. What did the state get out of it? No additional revenue. What did they lose because of it? The income tax of every single one of those people, the money spent by them when they go to lunch, the local stores, the malls and so on. This bill is effectively a guarantee that you’re going to lose money.
Why is this even getting talked about? It’s extremely logical and has enough research backing it to PROVE that it’s a bad move. I don’t understand how someone with 5 minutes and Google couldn’t see that this is a horrible idea. Or even if they just listened to the phone calls they’re getting. Or the letters. Or the e-mails.
But then again, that’s the reason that this won’t get looked at by anyone of any importance either – isn’t it? Because it’s not worth your time. Oh, we’re still positive on job creation this year. It’s a post written by someone that’s upset with a decision. It’s something that can be overlooked. It’s just … “a blog”. Right?
I’m sick and tired of people that have the capability to control others through a small “yes” or “no” pass something that will literally impact thousands of lives without blinking. Let me explain why I phrase it like that. This legislation has been proposed every year for the past 3 years (I believe it’s 3… Maybe it was two) and every single year it’s been defeated. But now, it gets thrown into an amendment (at the last second, just FYI) to “hide” it so it can get passed. How is that not the definition of intentionally trying to avoid what the people want, or what’s best for them?
So in general, I’d just like to remind you of the truth regarding this decision.
A) People will lose their jobs.
B) Business owners will be forced to close their doors.
C) The state will make ZERO (see: zilch, none, air, blank space) additional revenue. ZERO.
D) The state will LOSE revenue from all sales tax collected from said newly unemployed individuals not shopping, buying gas (I won’t mention your gas hikes here), and everything else because they lost their ability to make money.
E) The state will LOSE revenue from all income tax they WOULD HAVE collected, but now won’t. I guess having 100% of nothing is better than XX% of something, huh?
F) I, as well as many others, will stop recommending that others move to Maryland. I can say that confidently as my current business partner moved here from New York. If this was in place then, I wouldn’t. I wouldn’t have my company, you wouldn’t have any of my taxes at all, and more importantly: we wouldn’t have hired anyone for said non-existent company.
That’s all I’m trying to stress. It would be a foolish move to pass this, and I’m honestly really sick and tired of legislation being hid in other legislation just to have it pass – more so this than others because this has mountains of proof that it won’t make a positive ROI.
As I started this post, I’ll end with it. I understand that you’re a busy man (assuming you’re actually reading this, which I’d love to know – because that in itself would be a miracle). I know that you go through a lot every single day, and you make a lot of tough decisions. I know this. I’m a business owner myself. So if you value your time like I do, ask yourself one question: “How important is this to Rob if he took this much time to write it, post it, and send it to a few friends?”
And I hope you have a great rest of the year! You know, better than the people who are about to lose their jobs & possibly their houses.
