I’m glad the Governor signed compromise legislation today to help get some California affiliates back to work and bring thousands of Amazon.com distribution jobs to California. That’s very good news.

Unfortunately, this legislation is by no means a cure-all. It does nothing to solve the long-term problems created by the Legislature’s botched efforts to compel out-of-state retailers to serve as California’s tax collectors.

Absent a federal solution, which is highly unlikely in such a short time frame given all of the competing interests, we’ll be right back in the same mess in a year. The State of California will again be killing California jobs, driving away investment and inviting costly litigation.

Let me be clear: this compromise legislation, while welcome, provides only a short-term delay to a bad law that will never produce the revenues, nor the level-playing field, its proponents imagine.… Read More

AB 155, as proposed to be amended, will retroactively repeal the “Amazon Tax” for a year or longer, allowing time for impacted parties to seek a federal solution to the dispute.

This is far from a perfect plan, but politics is the art of compromise. It’s a good thing when competing interests are able to come together on a contentious issue.

The deal provides at least a one year reprieve for affiliate businesses whose livelihoods have been disrupted by the dispute. It allows time for impacted parties to seek a federal solution to this issue. Congress has always been the right venue for this conversation.

However, I’m disappointed that this deal provides no certainty for thousands of affiliates who partner with out-of-state online retailers other than Amazon. The uncertainty will discourage these companies from creating new jobs and investing in our state.

Furthermore, the Legislature refused to include a pathway to immediately bring Amazon jobs to California. I’ll be working with Amazon and legislators to find a way to expedite their presence in order to bring thousands of new jobs to our state as soon as possible.

Throughout the year… Read More

Media reports indicate that Amazon.com and legislative leaders have struck a deal to delay implementation of the “Amazon Tax” for at least a year.

I’m withholding judgment until I see the actual language of the deal. But I can say this much: any deal must be about California jobs.

Will this deal protect California’s remaining affiliate businesses? Will it bring back the businesses destroyed by the failed ‘Amazon Tax?’

Will it encourage new investment and job creation in our state by Amazon and other online retailers? Or will it continue to punish those out-of-state companies that dare to provide jobs and income for… Read More

I sent a letter to theGovernor and legislative leaders todayurging them to consider aproposal by Amazon.com that would bring an estimated 7,000 jobs to California. I also asked them to re-evaluate the projected budget revenue associated with the “Amazon Tax” (AB 28X).

Read my letter here.… Read More

Democrat lawmakers are protesting a proposed referendum on California’s new “Amazon Tax” law. But keep in mind that this issue isn’t about Amazon. It’s about the thousands of California jobs the “Amazon Tax” places in jeopardy.

The lawmakers who authored the ‘Amazon Tax’ should be ashamed to appear in public. Their law has failed to achieve their goals. Instead it is punishing thousands of California small business affiliates who are losing income and may even be forced to leave the state.

The Legislature should admit its mistake and repeal the Amazon Tax. But short of that, the fastest way to save California jobs is through a referendum rather than years of costly litigation. Let the people engage in the debate and decide the issue for themselves.… Read More

Even as Governor Jerry Brown lifted his pen today to sign the so-called “Amazon Tax” into law, thousands of affiliates across California were losing their jobs.

Major out-of-state retailers like Amazon.com and Overstock.com are terminating their California affiliate advertising programs in response to this legislation. I’ve been warning for months that this would happen, but apparently these warnings fell on deaf ears.

The so-called ‘Amazon tax’ is truly a lose-lose proposition for California. Not only won’t we see the promised revenues, we’ll actually lose income tax revenue as affiliates move to other states.… Read More

Make no mistake, the Democrats’ budget isn’t about solving California’s fiscal problems—it’s only goal is to ensure lawmakers keep their paychecks flowing.

When voters last fall granted Democrats their wish of majority-vote budgets, they demanded lawmakers forfeit their pay if those budgets are not approved on-time. But it was never the voters’ intention for lawmakers to approve a sham budget simply to keep their paychecks coming.

What’s worse is that to protect their own pay, Democrats are poised to sacrifice the paychecks of thousands of California small businesses known as affiliates. Up to 25,000 of these Internet entrepreneurs will lose their affiliate status if Democrats approve a so-called ‘Amazon tax.’ According to the Board of Equalization’s analysis, ‘termination of affiliate programs would have an adverse impact on state employment’ and ‘lead to lower revenues.’

The dumbest idea of all is the Democrats’ plan to sell state buildings for one-time revenue. If lawmakers want real one-time dollars, they should consider my proposals to raise billions in revenue by (1) granting an interest and penalty holiday to spur… Read More