Amazon Terminates Illinois Affiliates

Rather than collect and remit state sales tax for Illinois purchases, Amazon has terminated all their Illinois affiliates.

As Dan Frommer notes:

In theory, the law was supposed to benefit mom-and-pop local businesses, who may be threatened by ecommerce sites like Amazon. But as Amazon points out, in reality, the law benefiting the national big-box retailers who are most threatened by Amazon — most of which aren’t even based in Illinois. And now it’s hurting mom-and-pop web publishers.

Of course, this is part of Illinois’ attempt to save itself from bankruptcy and they’ve increased taxes and cut spending across the board.

In some ways, this hurts the smallest entrepreneurs who may be using Amazon to make a few hundred extra dollars per month to keep them afloat but who now have to scramble for new resources.

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