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On Monday January 25th, 2011 there was a “Public Pulse” editorial by B. Miller Siegel in the Grand Rapids Press stating that the best way to bring income into the government is to tax internet sales.
The state of New York did in fact do this a year ago.
The result?
The thousands of people who were paying high levels of income tax as “Affiliate” marketers lost their incomes as Amazon, Overstock and other leading internet companies “Fired” these affiliates.
An affiliate is an internet salesperson and just like any other salesperson in the country, they pay income taxes.
Affiliates do not need to live the state they are promoting products on their websites to and I am sure many higher and lower income affiliates have moved out of the state in order to remain sales people for these larger internet companies.

Taxing these affiliate sales people would be like adding an extra tax to a car salesperson every time they make a sale.
Taxing the sales of these affiliates’ resulted in a double tax and the big internet companies cannot and will not put up with double taxation.
New York found this out by not only losing the taxes they sought, they also lost millions in income taxes and property taxes as these affiliates were forced to shut down their home-based businesses and/or move out of the state.
Michigan or any state that has a forward thinking government could seize the opportunity and declare their state as an “Affiliate Safe Zone”.
The people of the states that are working on this high taxation strategy (California, Kentucky and others) would lose their most productive citizens to these “Affiliate Safe Zone” states as affiliates move into these states, buy the empty homes, increase property values and pay a lot of income and property taxes.
Any business that is related to retail sales in “Affiliate Safe Zone States” would thrive.

The new income and property taxes would give “Affiliate Safe Zone States” schools the capital they need to work with.
It is time for our country to realize that it is the brave people who take big chances and often risk it all to start a business or take the time and sacrifice to learn how to have an online business who are the potential heroes in saving the economy.
I do applaud people who look for jobs, but it is the people who create a job for themselves and others who should not be taxed excessively. They should be rewarded for putting themselves and others to work by being allowed to keep more of what they earn, not less!
Michigan has proven through the recent years that when government takes away the incentive to make the kind of living people dream of and work hard for, we lose our current employers, potential employers and those hard working self-employed who would have created new jobs.