The Revolt of the Kulaks has come to California.

Via Drudge, California’s attempt to tax internet sales has met with a reaction:

Gov. Jerry Brown has signed into law California’s tax on Internet sales through affiliate advertising which will immediately cut small-business website revenue 20% to 30%, experts say.

The bill, AB 28X, takes effect immediately. The state Board of Equalization says the tax will raise $200 million a year, but critics claim it will raise nothing because online retailers will end their affiliate programs rather than collect the tax.

Amazon has already emailed its termination of its affiliate advertising program with 25,000 websites.

This is why Obama will not see the trillion dollars in new taxes he wants, even if such legislation were passed.  People change their business and personal practices once taxes reach a tipping point.

This why we can’t tax our way to reducing the deficit.  We can control spending, but we cannot control revenue because we cannot control people.


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