Amazon to California: Ditch Tax, Get 7K Jobs

State senate, local retailers hostile to offer
By Matt Cantor,  Newser User
Posted Sep 2, 2011 8:29 AM CDT
Amazon says it can deliver California 7,000 jobs.   (AP Photo/Paul Sakuma)

(Newser) – Amazon has got a tempting offer for California, which is battling the nation’s second-highest unemployment rate: If the state delays a new online sales tax for two years, the Internet retailer will bring 7,000 new jobs to the Golden State. Amazon would also halt its push for a voter referendum on the issue. But Dems controlling the state legislature don’t plan to accept the proposal, Reuters reports.

The law calls on retailers outside the state to attach sales taxes to orders delivered to California residents, a move that is expected to bring in $200 million annually. An association of brick-and-mortar retailers opposes Amazon’s offer, too, having argued that giving Amazon a pass on sales tax gives the online retailer an unfair advantage. “Our people came back and said this isn't legitimate,” said the association’s head. Meanwhile, the state Senate leader says he plans a bill to stop Amazon’s proposed ballot measure.

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