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Sep 02 2011

California Board of Equalization Member George Runner Asks Governor Jerry Brown and Legislative Leaders to Accept Amazon.com Job Proposal

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The letter is here.

Dear Governor Brown and Legislative Leaders:I am writing to urge you to consider a proposal by Amazon.com that would bring an estimated 7,000 jobs to California.

As you are aware, California’s unemployment rate is the second highest in the nation. Our state’s budget problems stem from a shortage of jobs, as millions of Californians are either unemployed or underemployed and have little discretionary income. We need to do a better job attracting jobs and investment to our state if we want to solve the economic and fiscal challenges we currently face.

The deal recently proposed by Amazon would be a win-win for California. Not only would the proposed deal bring jobs to California, it would ensure that Amazon establishes a clear unimpeachable nexus in California.

Such nexus would guarantee that Amazon would collect and remit California sales tax for years  to come. The new jobs and facilities would generate millions of dollars in income and property tax revenue for state and local government.

Furthermore, repealing AB 28X would restore jobs for thousands of affiliates, as well as $31-43 million in lost affiliate income tax revenue, as projected by the Performance Marketing
Association.

Some have cited a reluctance to “give up” the $200 million in projected AB 28X revenue as a reason to reject the proposed deal. The BOE analyses of AB 28X and related bills, however, warned that these budget dollars were always questionable because of “probable behavioral changes” by online retailers.

Read all of the rest.

What this proposal means to me is that I can become an Amazon.com Sales Associate again and get my job back. Also, after the two year holiday, a California nexus is created and more jobs with tax revenue will result.

Why are the Democrats not accepting this deal?

2011-09-02 Letter to Governor and Legislative Leaders Re Amazon Tax Revenues

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