Tax Hungry New York State Law Hurts Affiliates

The old truism goes “you can’t tax corporations”.

When you impose a tax on a corporation, they either get out of that line of work or pass the tax on to the consumer. But either way, the tax will not be paid by the corporation.

But legislators just don’t get it. Taxing corporations is attractive because when prices go up, the people who get blamed are the stores, corporations, and other business entities… not the true culprits, the tax hungry politicians who never get enough to fulfill their appetites.

Here’s another example of that principle at work.

If you live in New York, you can no longer be a CafePress Affiliate.  How many other affiliate companies will follow suit? How many affiliates will be hurt? How many people will leave New York to work someplace they can be free of this onerous taxation?

Here’s the announcement:

As you may know, the State of New York recently enacted new legislation that addresses tax registration, collection and remittance, which challenges the CafePress affiliate business model.

Due to mounting uncertainly over these new laws we will no longer be able to support affiliates residing in the State of New York, effective July 1, 2008.

While CafePress has no tax nexus in any states other than California, Nevada and Kentucky we feel it wise to discontinue our affiliate business in New York State at this time.

Regrettably, our hand was forced into making this difficult business decision, and we openly acknowledge the loss of income this means for our New York affiliate partners. Should circumstances around this law change we will eagerly reconsider this decision.

Effective July 1, 2008 CafePress affiliate agreements with all New York residents will be terminated.

Steve Root
Affiliate Manager
CafePress