It seems like sort of double dipping to me. If the person ordering lives in NY, I can see them having to pay sales tax. I think there are similar state laws elsewhere on mail order. But how do they intend to do the affiliate tax thing? I really don't understand it. Is it if the affiliate is in New York that they have to tax every sale he makes, whether the buyer is in NY or not? Presumably, in the states that have state income tax, they are collecting that from the affiliates, right? What does sales tax have to do with affiliate income?
I personally don't mind the states getting their fair tax share on internet sales. I think internet buyers have had it good for way too long on taxes. However, if it would mean that we had to be taxed by the state where the business is located, AND the state where we live, that's too much. One or the other, not both.
There has to be a way to work this out. For instance, a company can't just go open up shop in a no sales tax state and expect to ***** the other states out of their money. It's not fair, really, and it hurts too many people who benefit from that tax base.
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