Federal tax gap

Income tax385 billion ($385,000,000,000)

I’m not sure what worries me more: the fact that the IRS was unable to collect approximately $385 billion (15% of the total) of federal taxes in 2006 or that – according to an article by CNN Money – that this is the best data policymakers have to go on regarding the government’s revenue shortfall. The worst part is that this is emafter /emthe more than 60,000 corporate and 1.5 million individual tax return audits the IRS conducts on an annual basis.   Continue reading

What will the future hold for Amazon affiliates?

Image representing Amazon as depicted in Crunc...

Image via CrunchBase

What will the future hold for Amazon affiliates? || “Amazon drops California associates to avoid sales tax” http://ow.ly/5uVAJ

Amazon’s decision to drop California-based associates is just the most recent move by the online retailer to avoid having to collect and pay sales tax.  Critics claim that Amazon’s immunity from sales tax in 49 of the nation’s states provides it with an unfair advantage over local and big-box retailers alike.  That said I wonder how many additional states will enact legislation that will force Amazon to sever ties with local affiliates and deal a direct blow to tens-of-thousands of small businesses who survive in part due to their successful relationship with the online giant.