We're not out of the woods yet, but this is an important step. Hopefully the federal government or a coalition of states will band together to create a solution at the national level (so small businesses in individual states aren't singled out). Then AB178 will never need to be considered again. But let's keep our eyes out for future activities.

When a nationwide bill is created, and all retailers have to collect sales tax in all states it will be an even playing field. Until then, if a bill passes in one state it will put that state at a serious disadvantage and ultimately be a “Small Business Tax.”

The good news: the California legislation yesterday decided to move AB178 to a two year bill. This is a huge success and shows that are government is listening and that they realize the major issues with the bill. It is well intended, but currently very flawed.

PS I will read the legislation more carefully. What I am saying is simply that, the Amazon.com e-tailers (or whatever you call them these days) should not get a free pass at the expense of local retailers of the brick and mortar variety.

There are plenty of adds on Yahoo for Amazon and Yahoo is a California company last time I checked.

California, New York and everybody else are going to tax Amazon and everybody else much sooner than later. Deal with it.

Second, the state can only think about taxing instead of reducing costs. If the state were like any other business, it would cut costs and improve efficiencey while thinking about quality. As we speak, state employees don't even want to furlough a single day. If the state were a business, it would drastically cut salaries, employees and eliminate wasteful projects. Why can't it reduce it's size by 30-40%? And I'm not talking about eliminating all the teachers. There are ways to cut the budget by a huge amount, but the state just can't get serious.

Third, when the state is in trouble, it always has a safety net – the taxpayers.

Here's the bottom line: the state is even worse than Wall Street because it will tax business and consumer even under the worst economic conditions since WWII. Taxpayers are subsidizing the ongoing standard of living of all state employees while the standard of living of all taxpaxpayers continues to decline.

There is legislation in the works at the national level that would solve the problem AND make an even playing for all states.

This proposed bill, AB 178, is not the answer our state needs.

Sorry,
A Bay Area resident and Internet commerce user

…It was never their damn money in the first place! Yet another example of tax happy government legislations put together with no thought of the consequences.