Friday, July 1, 2011

"California; Another 10,000 Businesses Gone"

Well, California, the Socialist State, California, often now referred to as "Mexifornia" for that huge Welcome Sign they hang out for illegals, has finally topped themselves.

As California sinks under the weight of housing, educating and medicating 12 million illegals the Democrat controlled State House can now truly be certified as "banana crazy".  Last month the Dems passed a law that forces hotels and resorts statewide to stop using flat sheets on the beds and convert to fitted sheets.  The state hospitality association complained that their automated laundry machines could not handle fitted sheets and that pressing by hand would increase their operating costs by several million dollars.

Some of the smaller hotel chains are now planning to move to other states.  They will be joining hundreds of other businesses that have fled to Nevada, Arizona and Texas where the business climate is more friendly.

However, today's news tops them all.  California is now mandating that the Internet Giant Amazon must begin collecting and paying out sales taxes for all Internet sales which originate in the State of California.  According to Amazon, they have 10,000 sales affiliates in the state.  Yesterday Amazon announced that they are now forced to sever all business ties with those 10,000 small businesses that retail through the Amazon network.  Letters from Amazon to all of those small businesses were sent out this week.  The letters announced that Amazon would be dropping those 10,000 retailers from the Amazon Marketplace.

So, California, in opting to ignore federal law that prohibits Internet tax collections when no there is no business physical prescence, and in choosing to punish small business retailers in order to collect a few million dollars in Internet sales taxes, has surrendered billions of dollars in income from small business sales.  Many of those small retailers have already said they'll move their operations out of state; they say they must in order to survive.

So, remember that $25 billion annual budget deficit that California experiences each year?  Yep, it's going to get alot worse.

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