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Old 04-29-2011, 10:35 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,471 posts, read 15,835,178 times
Reputation: 6438

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Amazon packing after House vote - S.C. Politics - TheState.com (http://www.thestate.com/2011/04/28/1795776/amazon-packing-after-house-vote.html - broken link)

Amazon all but told South Carolina goodbye Wednesday after the online retailer lost a legislative showdown on a sales tax collection exemption it wants to open a distribution center that would bring 1,249 jobs to the Midlands. Company officials immediately halted plans to equip and staff the one million-square-foot building under construction at I-77 and 12th Street near Cayce. “As a result of today’s unfortunate House vote, we’ve canceled $52 million in procurement contracts and removed all South Carolina fulfillment center job postings from our (Web) site,” said Paul Misener, Amazon vice president for global public policy

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Heh. That was a lot of money and jobs. Oh well, someone else will get it.
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Old 04-30-2011, 12:23 AM
 
Location: Louisiana
9,138 posts, read 5,804,991 times
Reputation: 7706
Whose "victory" was it?
Certainly not South Carolina's.
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Old 04-30-2011, 05:48 AM
 
Location: North Cackelacky....in the hills.
19,567 posts, read 21,873,039 times
Reputation: 2519
Not caving into extortion(do what we want or we won't build in your state) is a victory.

Amazon wanted special status that other retailers do not have.

And the jobs lost,well I wouldn't have counted on all those jobs appearing when all was said and done,but the tax breaks to Amazon would surely have.
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Old 04-30-2011, 05:49 AM
 
5,938 posts, read 4,700,185 times
Reputation: 4631
This was a dumb move by SC from my perspective.

Amazon is my retailer of choice. They are cheaper than the Best Buys and book stores for most goods by a large amount. I don't pay sales tax either. I also don't care what state they operate out of. They will continue to get my business.

If they were in SC, they would have brought 1250 jobs directly, plus an influx of business directly to Columbia plus maybe some extra UPS/FedEx/USPS workers.

Their presence in SC would have made NO difference to local businesses. Amazon doesn't have a retail floor. Their location has no bearing on the "small local business" conversation. Those that planned on buying from Amazon will continue to do so now. SC lawmakers just cut off their nose to spite their face. It would have been a windfall in jobs and income taxes.

Now, I'm going to order something from Amazon right now, and workers in TN will reap the benefits instead of SC. Good job SC state legislature.
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Old 04-30-2011, 06:39 AM
 
Location: Great State of Texas
86,052 posts, read 84,495,743 times
Reputation: 27720
So how is that taste of "sweet" victory ?
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Old 04-30-2011, 06:49 AM
 
Location: Columbia, MD
111 posts, read 91,622 times
Reputation: 64
Quote:
Originally Posted by HappyTexan View Post
So how is that taste of "sweet" victory ?
LMAO and +1. It's things like this, and not wages, that drive jobs away from the US.
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Old 04-30-2011, 07:06 AM
 
9,727 posts, read 9,730,662 times
Reputation: 6407
Quote:
Originally Posted by dspguy View Post
This was a dumb move by SC from my perspective.

Amazon is my retailer of choice. They are cheaper than the Best Buys and book stores for most goods by a large amount. I don't pay sales tax either. I also don't care what state they operate out of. They will continue to get my business.

If they were in SC, they would have brought 1250 jobs directly, plus an influx of business directly to Columbia plus maybe some extra UPS/FedEx/USPS workers.

Their presence in SC would have made NO difference to local businesses. Amazon doesn't have a retail floor. Their location has no bearing on the "small local business" conversation. Those that planned on buying from Amazon will continue to do so now. SC lawmakers just cut off their nose to spite their face. It would have been a windfall in jobs and income taxes.

Now, I'm going to order something from Amazon right now, and workers in TN will reap the benefits instead of SC. Good job SC state legislature.


If Amazon was squawking about collecting sales tax NOW, what kind of extortion do you thing they would have tried LATER once the plant broke ground? They probably would want an exemption from paying taxes to support the infrasture upgrades and utilities needed to service the facility.
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Old 04-30-2011, 07:07 AM
 
Location: Orlando
8,276 posts, read 12,861,779 times
Reputation: 4142
So glad SC can collect their sales tax it is important they took the stand. Victory is theirs! hmmm so how much did they gain?

sales tax ranges from 6% - 8% so that means they gained ............. $0
State income tax for 1249 jobs, if only minimum wage - 7% = $1,363,908 ....so guess they didn't quite gets that either... hmmmm

But gosh darn it, THEY WON!!!!
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Old 04-30-2011, 07:08 AM
 
Location: Great State of Texas
86,052 posts, read 84,495,743 times
Reputation: 27720
Quote:
Originally Posted by kevinm View Post
If Amazon was squawking about collecting sales tax NOW, what kind of extortion do you thing they would have tried LATER once the plant broke ground? They probably would want an exemption from paying taxes to support the infrasture upgrades and utilities needed to service the facility.
They don't have a past history of doing that in other states.
Why do you think they "probably" would have tried what you are posting ?

I guess better be proactive and kick them out before they even start eh ?
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Old 04-30-2011, 07:22 AM
 
41,813 posts, read 51,059,937 times
Reputation: 17865
Collecting sales tax whether it's big or small online retailer is a huge burden. You have 50 states with 50 different tax schemes and that is before you get into the local tax schemes.

I don't know what the solution is but something has to be done, large retailers like Amazon will just move their operations to tax friendly state. Online retailers, especially the small ones that can't move, will suffer the consequences.
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