Amazon Axes Rhode Island, North Carolina Affiliates

Last week, Amazon cut off its affiliates in North Carolina and since has cut off affiliates in Rhode Island as it attempts to send a message to state lawmakers that it opposes bills creating online sales taxes, reports The Wall Street Journal.

Lawmakers in New York didn't cave, and neither did a judge there after the e-tailer launched a legal challenge.

According to econsultancy.com, it's easy for Amazon to cut off the small sites in North Carolina and Rhode Island that it pays to direct traffic its way rather than strike out against the larger base of affiliates it has in states such as California. It writes:

While decent arguments can be made that some sort of internet tax regime could be appropriate in the U.S., states rushing to pass hastily-conceived legislation that would force companies like Amazon to deal with a hodgepodge of tax state and local tax laws and rates are learning the hard way that companies would rather risk some loss than go along with their misguided efforts.