The so-called “Amazon Tax” is now California law, and it’s already a failure. After having terminated their advertising relationships with thousands of California-based Internet affiliate businesses, leading out-of-state online sellers continue to sell into California without collecting sales tax.

Proponents of the “Amazon Tax” claimed it would “create fairness” by “leveling the playing field” between California’s brick and mortar retailers and out-of-state online sellers. They claimed it would generate $200 million in new revenues for the state this year. But they were wrong.

So far all of the following online sellers have terminated their affiliate programs (if you know of others, please let me know):

6pm.com Amazon.com Audible.com B&H Photo & Electronics Corp. Backcountry Barware.com Beach Trading Co. BeautyBar.com BedBathStore Benchmark Brands Inc. CSN Stores Diapers.com Drugstore.com Endless.com Fabric.com Gaiam GiftBaskets.com Hayneedle Higher… Read More

If you haven’t actually heard fingernails scratching a chalkboard, let me assure you it is a terrible sound that will produce a wince even from the hard of hearing. With the implementation of a no new taxes budget (aside from that illegal fire serves tax), liberal newspaper editorial boards and columnists are consumed with outrage at the fact that the redistributing of wealth by state government is decreasing and they are especially outraged at Republican legislators for not placing income, sales and car taxes on the ballot – or for just not increasing them through legislative action. Some of their screeds are the written version of the fingernails on the chalkboard, but it is to be expected, I suppose. After all, these are the same folks who have been rhetorically brow-beating Republicans, and the two-thirds vote requirement for higher taxes,… Read More

The Orange County Taxpayers Association has been a fixture in Orange County politics since its founding in 1986 by tax fighter Reed Royalty. That having been said, for the first time in nearly a quarter-century the organization has decided to start hosting an annual awards dinner where they recognize taxpayer heroes with Rose Awards, enemies of the public purse with Radish Awards, and they also created a new Royalty Award (named for the group’s founder).

I spent several hours at this first annual OC Tax Awards dinner which was held at the Disney Resort’s Grand Californian Hotel. The audience was packed with over 300 people — and by my estimate, at least a third of them were local elected officials. Besides a ton of city council members, school board members, water board members and community and business leaders — a few countywide officeholders and legislators were on hand — including Sheriff Sandra Hutchens, Treasurer Shari Freidenrich, State Senator Lou Correa and Assemblyman Allan Mansoor. The event was emceed by the Chairman of the Board of OC Tax, former Anaheim Mayor and ex-Assembly Speaker Curt Pringle.

If you want to get… Read More

A few months ago the liberal dominated election law email discussion list I subscribe to was agog that a rogue group of IRS auditors had initiated five “examinations” of contributors to Section 501 (c)(4) nonprofit advocacy groups to see if they had paid “gift tax” on the contributions. Contributions to groups like the National Rifle Association, a c4, are not deductible, and generally not taxed, but there is some funky language in the Federal tax code that could be interpreted to mean a tax would have to be paid on the amount of a gift over $13,000 to a c4. Of course, c4s are also sometimes referred to by lazy MSM reporters as “shadowy groups” that don’t have to disclose their donors and that can engage in candidate related communications just short of express advocacy near an election……

I advised my clients not to worry, I didn’t see the examinations as a full scale assault against activities such as critizing the performance of elected officials, which is protected by the First Amendment. I did not read into the examinations that the Obama Administration was launching an attack on public… Read More

The “Qualified Purchasers Program” was created by the State Legislature, when it approved Assembly Bill X4 18 in 2009. I was serving as a Senator at the time and voted against the legislation. I continue to believe this new use tax collection program is a costly mistake.

To date BOE has identified more than 500,000 businesses as “qualified purchasers” and has automatically registered many of them with a “use tax” account. A qualified purchaser is defined as a service enterprise with more than $100,000 in gross receipts per calendar year that is not already registered with the Board of Equalization.

Most people are understandably confused about ‘use tax.’” The use tax applies to all Californians when you purchase items from a retailer who is not located in California and not registered to remit tax to California. Prior to the creation of the Qualified Purchaser Program, there were already two different ways for Californians to report use tax—(1) BOE Form 79b and (2) a dedicated line on state income tax forms.

My review of this new… Read More

Having participated in, and covered politics here in California for well over two decades, I have seen a lot of potentially game-changing news stories. If you do nothing else today, you need to sit down and spend about eight minutes watching this stunning and explosive Fox News (Channel 11 in Los Angeles) news story on City Councilwoman (and ersatz Congresswoman) Janice Hahn’s involvement with and support of a controversial program that has the City of Los Angeles “hiring” gang members, many of them violent criminals (rape, assault, and more…) to interface with other gang members to perform some supposedly desirous “intervention” — seriously.

You have to watch this — it goes from stunning and amazing to downright explosive when, mid story, the reporter starts to talk about the cease and desist letter sent from Janice Hahn’s attorneys to try and stop this reporter and Fox 11 from running this story.

With only five days until the election, Janice Hahn has to pray that the general voting population does not see this news story. In my opinion, this piece would not only cause swing voters to go against Hahn, but… Read More

I don’t fit neatly into a box. I am a conservative Republican who doesn’t raise taxes and votes to cut nearly every bit of government spending I can find. But, I am against the wars in Afghanistan and Libya, think we should cut defense spending, support legalizing internet gambling, sponsor a lot of bills to prevent abuse of animals, want pristine, clean oceans and believe we need some government support of home mortgages. No, that is not a box.

For those of you who don’t know my background, I am a native Californian raised by two very conservative and politically active parents. “We were Taft Republicans”, my mother often told me to make sure I understood that Dwight Eisenhower was way too moderate for them. The last Democrat I voted for was Sam Yorty for Mayor of Los Angeles in the 1970s. I think he later changed parties. I’m about as Republican as you get.

But, my ideology guides my thinking. It does not replace it. I believe that this job is about solving problems. And, there is never only one prescription to right every wrong. Napoleon Bonaparte was certainly the most brilliant military strategist of the 19th century and… Read More

Prior to the passage of Proposition 26 last year, because of a court decision, many revenue streams approved by the legislature that you or I would call a tax, were instead called a “fees” (when there is a nexus between where the revenues are coming from, and what that money is being spent on). Using the nexus “loophole” a great number of taxes were passed, as under this scheme, a “fee” only required a simple majority vote, not the two-thirds vote required for a tax increase. Proposition 26 slammed shut this loophole, and so all taxes are actually considered taxes, and take a two-thirds vote of the legislature to enact.

Enter into the picture Assembly Bill 291, authored by liberal Democrat Assemblyman Wieckowski. This legislation has to do with a tax that hits primarily gas station owners – where every owner of an underground petroleum storage tank is required to pay a per-gallon fee that goes into an Underground Storage Tank Cleanup Trust Fund. While it is a bit complicated to go through the formula for computing the current per-gallon… Read More