Arnie and his group of minions ask the people of California if they wanted their taxes increased and they responded with a resounding NO! four ballet measures that the state presented to the people were shot down in flames, causing undue hardship on the folks who run Sacramento. These politically correct bunch just don’t get the fact that you can’t continue to spend money you don’t have, continue to chase businesses out of the state and support 4 million residence from another country.

Here is one persons take on how attacking marketing affiliate’s could cause harm:

Earlier proposed legislation in AB178 was shelved in April. Now the State is getting desperate for money and clutching at straws, this legislation is being resurrected and may be squeezed into another bill.

The estimated additional income to the state is not likely to materialize. Worse than that, it could turn into a net loss for the state. The harm to tens of thousands of small California businesses, and a several large ones, could be irreparable. Collateral damage to other California businesses that support the directly affected businesses is also likely.

At issue is the fact that the legislation would unbalance the playing field, handing California’s advantage over to other states and locking California businesses out of the running.

Affiliate Marketing, also called Performance Marketing has been a real boon to vendors large and small. It allows them to sell their products across the USA and around the world, even if they are based in a small town in the middle of nowhere.

After operating for many years, affiliate marketing has created many jobs. A lot of innovation and many side industries have sprung up around it. These small businesses are not organized as a group and they generally don’t have a lot of money to throw around on lobbying, they just get on with the job of surviving, growing and employing.

So what will happen if California does attack the affiliates? It could be a boon for the remainder of states that are more cognizant that taxing affiliates may cause more harm than good.

What do you think?

Comments welcome.