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Internet sales giant to cut ties with California

California’s evolving budget crisis continues to meet headwinds with major Internet companies who are lining up to flee the state if Democratic Governor Jerry Brown signs new tax increase legislation into law. will join in pulling all affiliate sellers from the state if lawmakers insist on additional taxes. A letter from to Board of Equalization Member Senator George Runner said it will terminate its California affiliates should pending affiliate tax legislation become law.

“This issue is much, much bigger than one company,” said Runner. “A law requiring out-of-state retailers to collect sales tax from California consumers could force thousands of online retailers to terminate their relationships with California-based affiliate businesses. This hurts California jobs and revenues.”

A few weeks ago Amazon voiced their concern in the form of a letter and now has done the same.

Mark J. Griffin, general counsel for, said his company has terminated affiliate relationships “in every state where this legislation has passed” and “will do so in California.”

According to Griffin, in 2009 terminated 3,200 California affiliates after the Legislature passed a similar measure.

“Taxes have consequences,” Runner explains. “Too often we assume companies and individuals will keep acting the same after new tax laws are passed. That is simply false. Businesses change their behavior as tax laws change.”

California’s budget woes are legendary and lawmakers on either side of the aisle have avoided making the first move –fearing voter recalls.

Take Florida for example, voters in Miami-Dade, recalled Mayor Carlos Alvarez yesterday in a landslide 90 percent vote. Disgruntled constituents lashed out when Alvarez’s missteps showed his office handing out lavish pay increases to staffers, a publically-funded stadium for the Florida Marlins and the taxpayer a larger property-tax bill. The local recall results were the largest in political history.

Meanwhile, California continues to operate without a state budget and Governor Brown emphasizes that state residents must take part in a $26 billion “shared sacrifice” – half tax hikes and half spending cuts. Brown insists it’s the state’s Republicans who are blocking budgetary progress, yet Sacramento is ruled by Democrats in both houses and the governor’s office.

California’s weary taxpayers have not indicated the consequences that will be shouldered by lawmakers if tax increases become reality. However, politicians beware- angry Florida voters recalled a popular mayor and California recalled Arnold Schwarzenegger’s predecessor Gray Davis after tax increases.

While the jury is out on the level of voter anger in the Golden State, proposed tax hikes could come back to haunt any lawmaker who signs on the dotted line.

“Supporters of this proposed policy claim that they want to create a level playing field for businesses that have retail presence in California and are required to collect sales tax,” Runner said. “Unfortunately, none of the bills under consideration will level the playing field because out-of-state online retailers will simply modify their business model to avoid collecting California’s sales tax.”

Runner contends the 25,000 Internet affiliates in California are at risk of being wiped out by this attempted sales tax grab. “This law will kill jobs and cost the state revenue as these individuals and businesses close up shop in California,” he finished.

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© Copyright 2011 Kimberly Dvorak All Rights Reserved.

Continue reading on Internet sales giant to cut ties with California – San Diego County Political Buzz |

DHS & DOJ and ICE crack down on child pornography websites

The Department of Homeland Security (DHS) and Department of Justice (DOJ) announced the execution of seizure warrants against 10 websites that engaged in the advertisement and distribution of child pornography.

The new program is part of a new attempt by DHS, DOJ and U.S. Immigration and Customs Enforcement (ICE) to limit child pornography on the Internet. The new joint task force program is called Operation Protect Our Children.

“Each year, far too many children fall prey to sexual predators and all too often, these heinous acts are recorded in photos and on video and released on the Internet,” said Secretary of Homeland Security Janet Napolitano. “DHS is committed to working with our law enforcement partners to shut down websites that promote child pornography to protect these children from further victimization.”

The Internet has been lauded as a great invention that has brought folks together around the globe, but the World Wide Web dark-side has also given birth to numerous child pornography outlets- making it easier for perverts to explore their vial urges.

“For all its positive impact, the Internet has also unfortunately created a new way for child predators to commit their inexcusable crimes,” said Assistant Attorney General Lanny A. Breuer of the U.S. Department of Justice, Criminal Division. “The production and distribution of child pornography wreak havoc on innocent lives. With these domain seizures, we are taking our fight against child pornography to websites that facilitate the exchange of these abusive images.”

The joint task force was spearheaded by ICE’s Cyber Crimes Center (C3). The nationwide ICE initiative sets out to identify, investigate and arrest those who prey on children. Those attempting to access the seized websites will find a banner telling them the website has been seized by federal authorities.

“Operation Protect Our Children” leverages the resources of ICE Homeland Security Investigations, DOJ’s Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and the DOJ Asset Forfeiture and Money Laundering Section to investigate and prepare seizure warrants against websites who post any kind of child pornography.

ICE encourages the public to report suspected child predators and suspicious activity on its toll-free hotline at 1-866-DHS-2ICE. Suspected child sexual exploitation or missing children crimes may be reported to the National Center for Missing and Exploited Children at 1-800-843-5678 or visit their website at

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© Copyright 2011 Kimberly Dvorak All Rights Reserved.

Continue reading on DHS & DOJ and ICE crack down on child pornography websites – San Diego County Political Buzz |

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