Illinois Wants Us To Move

Many of you are wondering why the federal government does things to hurt small business when small business creates a ton of jobs in this country.  My bigger question right now is why Illinois wants us to move?  Ok, you might think this is a bit out there, but Illinois has done some major things to impact Illinois businesses recently.

1. Illinois significantly raised corporate income taxes and personal taxes.

We went from 3 to 5% income tax and 4.8 to 7% corporate taxes.  We also have a 2.5% corporate surcharge and a yearly fee for filing the coporate report (i.e. franchise fee).  How can business sustain such a hike?  I know that there are several states where corporate taxes and personal taxes are not so high.  It looks like Wyoming might be the place to go, or Ireland.

My state is starting to become the place to be from, sort of like Iowa was in the 1980’s or Michigan today.  Do you really want to lose small business Mr. Quinn?

2. Illinois now requires sales tax to be paid by Amazon.com and other web retailers that use affiliates in the state

The impact to affiliates that live in Illinois was major in some cases.  We lost the ability to use Amazon.com as an affiliate program which doesn’t impact us in a major way, but it does impact some businesses in a major way.  Enough so that they may relocate to other states, such as FatWallet.com.  We have referenced many Amazon.com books on our site here and we will have to go through and remove the references.  I am not sure if we will go to another affiliate program for books or if we will just give up on offering books through this site.

3. Caterpillar and other larger businesses are threatening to leave

Caterpillar is now threatening to leave Illinois along with 23,000 jobs.  With the hostile business environment here, we may see several others leave.  The larger companies are just the tip of the iceburg, as smaller companies may do the same thing just to stay afloat.  We won’t hear about them, they won’t make headlines.  They will just pick up and go elsewhere, and many other states will welcome them with open arms.

Governor Quinn, we need to make Illinois favorable for companies to move to, not so hostile that great companies will move away.  You think you have revenue problems now?

References:

Amazon.com No Longer Pays Affiliates In Illinois

Amazon.com sent us an email this week stating they are terminating the contracts of associates in Illinois.  The following is a copy of the email we received:

“Hello,

For well over a decade, the Amazon Associates Program has worked with thousands of Illinois residents. Unfortunately, a new state tax law signed by Governor Quinn compels us to terminate this program for Illinois-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers – including but not limited to those referred by Illinois-based affiliates like you – even if those retailers have no physical presence in the state.

We had opposed this new tax law because it is unconstitutional and counterproductive. It was supported by national retailing chains, most of which are based outside Illinois, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that its enactment forces this action.

As a result of the new law, contracts with all Illinois affiliates of the Amazon Associates Program will be terminated and those Illinois residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, or SmallParts.com. Please be assured that all qualifying advertising fees earned prior to April 15, 2011 will be processed and paid in full in accordance with the regular payment schedule. Based on your account closure date of April 15, 2011, any final payments will be paid by July 1, 2011.

You are receiving this email because our records indicate that you are a resident of Illinois. If you are not currently a permanent resident of Illinois, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after April 15, please contact us for reinstatement into the Amazon Associates Program.

To be clear, this development will only impact our ability to continue the Associates Program in Illinois, and will not affect the ability of Illinois residents to purchase online at www.amazon.com from Amazon’s retail business.

We have enjoyed working with you and other Illinois-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to Illinois residents.

Regards,

The Amazon Associates Team”