Federal Tax Stupid, Says Performance Insider and hurts Affiliate Marketers

Friday, December 02, 2011

Federal Tax Stupid, Says Performance Insider and hurts Affiliate Marketers
By Mike Gunn @ 10:14 AM :: 224 Views :: 0 Comments ::

:: Affiliate Marketing

Performance Insider just released an article about the affiliate tax nexus issue saying the Federal bill being proposed is stupid. You can see the article here.

Performance Insider says that many small affiliate marketers are successful because customers don't pay tax. While this may be partially true I find it hard to believe that is the sole motivator for buying online. I also find it hard to believe that affiliate marketers are attracting buyers based on the fact that they won't pay any tax. In fact I have never seen an advertisement that says "buy here no tax".

The challenge for most Internet Marketers is the collection of taxes by state. Each state and often counties within the state have their own different tax rates. The complexity of collecting different tax rates and then reporting such is the main reason merchants in the affiliate channel terminate affiliate marketers registered in the Nexus Tax States.

I believe consumers are not opposed to paying tax if it is required to obtain their merchandise and if every online merchant charged a nation wide flat tax rate it would simplify the process of reporting. I believe the main reason consumers buy online is because of convenience and the ability to do product and price comparison.

We at Profit Rank support a national Internet flat tax rate. It simplifies the tax issue and permits Nexus Tax state affiliate marketers to continue to live and work in these Tax Nexus states.

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