Apr 05, 2013 1:42 PM GMT
A tax on online sales passed in Illinois two years ago has been called a "disaster" in that state.
An opinion published in the Chicago Tribune said the Illinois online sales tax plan, dubbed the "Amazon tax" after the Seattle giant online retailer, was expected to generate $150 million but has reportedly generated only 5 percent of that total.
After the Illinois tax was passed, Diana Sroka Rickert of the Illinois Policy Institute noted that many online retailers like Amazon (NASDAQ: AMZN) and Overstock.com ended their relationships with Illinois-based marketing affiliates.
Other Illinois companies, such as CouponCabin and FatWallet.com, left the state.
"Since this law has failed to produce its anticipated revenue and resulted in Illinois losing jobs to border states, Illinois should repeal the Amazon tax. It has not helped the state; it has hurt it," Rickert opines in her editorial.