Amazon boycotted over e-tailer's flight from state

SACRAMENTO (KABC) -- There's a new push to boycott Amazon.com over its attempt to overturn California's new online sales tax. The sales tax could bring in $200 million per year, according to a Democratic Party budget estimate.

Advocates for the poor believe their state services wouldn't have been cut as deeply had online retailers like Amazon collected sales tax from their California customers.

The group launched its own site to get Californians to sign up and boycott Amazon.

"Our services have already been cut to the bone. People with disabilities, seniors, kids, parents, poor people. All of us have almost nothing left to survive on," said Jessica Lehman, Community Resources for Independent Living.

Caroline Topee was one of the first to close her Amazon account. She says it was a difficult decision because the prices are budget-friendly.

"Very hard. I was a very good customer of Amazon," said Topee. "I purchased over the years online and when I heard about how they were cheating California out of important revenue, then I decided I wanted to close my account."

Amazon recently poured $3 million on a referendum to overturn California's new online sales tax law. The Seattle-based company didn't comment on the boycott but supporters of the referendum say the U.S. Supreme Court has ruled such tax laws are unconstitutional.

Referendum supporters also point out "e-tailers" have already severed ties with several thousand California businesses so they wouldn't have to collect the sales tax, forcing job losses.

"This new tax law would actually hurt jobs here in California, by creating an un-level playing field for small online California businesses who would be put at a big disadvantage to online businesses in other states," said Ned Wigglesworth, More Jobs Not Taxes.

But Democrats say the playing field hasn't been level for brick-and-mortar stores where cashiers collect the sales tax. They want e-tailers to abide by the same rules.

The More Jobs Not Taxes coalition also says consumers cannot afford to send more money to Sacramento.

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