Dear John, er, California

Back when California passed the Amazon tax, I noted:

Additionally, it’s likely that large affiliates may relocate out of California to another state so that they can maintain their status. That will exacerbate the hit to California.

Well, while the California legislature and Amazon have struck a deal, other California companies are acting. CEO Thomas Swalla told SoCal Tech (right after the Amazon tax passed) that it would likely take them 60 days to evaluate the new law. Well, they’ve done so:

Dear California,

We’re terribly sorry to have to do this but we’re no longer a good match for each other. And trust us when we say it’s you, not us…we just can’t afford you anymore.

Ever since you and your new BFF–the Affiliate Nexus Tax–started hanging out, people just don’t want to do as much business with us anymore.

It’s unclear where will end up; in the SoCal Tech article, their CEO speculated on moving to nearby Nevada. No matter, there will be 400 individuals not paying taxes to California, and one business entity not paying taxes to the state. Given that each paying job supports other jobs of other companies, this is a much bigger deal than you might realize.

Still, Democrats seem to have blinders on. Governor Brown still wants to pass tax increases (I kid you not). It’s time for California to cut taxes and regulations, or the state that was an entrepreneur’s haven in the last century will become a desert for entrepreneurs in this century.

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