Category Archives ⇒ Politics

FISA Amendments Act Could Pass – Should We Be Worried?

· Brandon Hann

FISASpeaking not only as a blogger, but as a citizen of this country, I feel that ANY legislation being considered to regulate the Internet is a very slippery slope to head down. Be it censorship or the ability to freely monitor it for criminal activity; to me it’s all the same. As it stands, the Internet is a wide-open world of free thoughts and speech from everywhere on the planet. Since its exponential growth in the early 2000s, the Internet has changed the face of everything from how we communicate to how we do business. For better or for worse, this connectivity is now sewn into the fabric of our lives, but even with all the negative side-effects of that powerful machine, there comes very real positive elements. This positive technology is now being threatened…again.

What I’m talking about today is a new legislative Amendment, Foreign Intelligence Surveillance Act (FISA) allowing intelligence agencies to monitor international communications via the Internet in hopes that they might stumble upon some activity deemed to be illegal. Electronic Frontier Foundation (EFF) properly defined what the FISA Act means for all of us:

The FISA Amendments Act continues to be controversial; key portions of it were challenged in a case before the U.S. Supreme Court this term. In brief, the law allows the government to get secret FISA court orders—orders that do not require probable cause like regular warrants—for any emails or phone calls going to and from overseas. The communications only have to deal with “foreign intelligence information,” a broad term that can mean virtually anything. And one secret FISA order can be issued against groups or categories of people—potentially affecting hundreds of thousands of Americans at once.

To me, I understand this as being illegal search and seizure! While I’m all for catching the bad guys, I’m not willing to do it at my own expense. This is like opening your front door a couple of times a week to allow the police to search your home for any illegal activity on the off chance that they’ll find the “real person” they’re looking for. This has got to stop! Otherwise, we’re going to be a nation of lemmings marching to the beat of the government drum. Step out of line and you’re dead.

But fear not, Sen. Rand Paul has our back! He is proposing a new Amendment called the “Fourth Amendment Protection Act” which re-asserts the protections of the 4th Amendment as well as extending it’s protections to third party searches conducted by intelligence agencies. These searches usually target the likes of AT&T and Google by forcing them to expose stored data on their customers.

It’s a shame that our current administration seems hellbent on destroying everything that’s great about this country. And they do it under the pretext that they are protecting us which makes it much more sickening.

California Affiliates for Amazon Welcomes Nexus Law Repeal

· Brandon Hann

On June 28th, California governor Jerry Brown signed into law a nexus tax law (ABX 1-28) aimed at online retailers doing business in California. Almost overnight, this new law shut down countless affiliate marketers who work from home selling products from online retailers such as Amazon.com. The law’s intention was to quell the complaints from small businesses that operated traditional “brick-and-mortar” storefronts and couldn’t compete with the low prices of their online equivelents. Adding to this the fact that online retailers could run their operations in states that charge lower taxes for business, retailers like Amazon could sell goods to California residents at lower prices than anyone else.

For as long as California has been collecting taxes on businesses, the law stated that any business operating within the state that had a physical presence there would be subjected to state taxes. When online retail took off, companies were able to skate around this law by simply not have a physical presence in the state. The new law was to close that loophole and essentially define California-based affiliates as the “physical presence”. While this may have been a huge sigh of relief for local small businesses, it dealt a heavy blow to the thousands of affiliates who depend on commission sales for a large portion of their income.

Of course, Amazon was opposing this law from the start and over time has contributed over $2 million to have it repealed. It appears that this day has finally come. Now that Governor Brown has signed the repeal, here is how the process will work:

  • The California affiliate nexus provisions of ABX 1-28 enacted on June 28 are repealed and no longer of any effect, and also will not be enforced with respect to the period from June 28 through the effective date of AB 155 (i.e., the date Governor Brown signed the bill);
  • If no federal legislation is adopted over-ruling Quill before July 31, 2012, then the California affiliate nexus provisions (as re-stated in AB 155, with one important change, noted below) will become law on September 15, 2012;
  • If federal legislation overturning Quill is adopted by July 31, 2012, and California does not implement the requirements of such a federal law by September 14, 2012, then the California affiliate nexus provisions (again, as restated in AB 155, with the change noted below) take effect January 1, 2013;
  • If federal legislation over-turning Quill is adopted by July 31, 2012, and California implements the requirements of such a federal law by September 14, 2012, then the affiliate nexus provisions of AB 155 will NOT take effect.

My two cents

As a former and now current Amazon affiliate marketer, I am all for this repeal and hope it remains permanent. After all, Amazon has been fighting this battle for some time now when other states have enacted similar laws and received no major positive results. In fact, those states reported more bad than good. California’s attempt at finding new revenue streams has failed in this case and as a marketer myself and online shopper, I applaud their efforts and hope that California will never look at this law again.

No Criminal Charges for Jason Chen or Gizmodo

· Brandon Hann

Remember back in March of 2010 when that mysterious prototype iPhone was found in a bar that fueled the speculation of what the new iPhone 4 was going to look like? For those that don’t remember, an Apple employee charged with the task of testing a fully functional iPhone in the ‘real world’ spent his birthday at a local bar, ended up drinking too much and left the prototype phone at the bar only to be found by another patron. It was this guy and his friend that pitched the sale to Gizmodo.com’s Jason Chen.

Shortly after Jason took possession of the device, he blasted out blog posts including pictures and videos showing off the new device and only speculating what could possibly be inside. It was then that one of the largest tech exclusives took off. It became world news for 2 reasons. 1. Everyone was waiting to hear about any little detail they could find regarding a new iPhone and 2. Apple NEVER gives sneak peaks or media previews. They make their announcements to the world while everyone is watching.

Originally after the news broke, everyone was up in arms about who could have done this, was the device stolen, was Jason Chen’s possession of it illegal, etc. After a year of investigations, Jason Chen will not have any charges filed against him. Apparently, as a journalist, he is covered by the shield laws that basically protects a journalist’s 1st amendment rights as a reporter.

At the time authorities had seized Jason’s computers and notes related to the unfolding event, although it’s widely believed that this seizure was illegal because they ended up taking unpublished notes from a reporter—another gray area of the shield law.

Prosecutors claim that although they potentially have a case with charging Jason Chen, they are opting not to pursue due to the many gray areas that could upset a final verdict. The two individuals responsible for finding and selling the device to Gizmodo are not so lucky. Brian Hogan and Sage Wallower are both getting slapped with misdemeanor charges. Hogan was charged with one count of misappropriation of lost property; Wallower with misappropriation of lost property, and possession of stolen property. Each faces a maximum of a year in county jail, plus fines and probation.

My two cents

This truly is a gray area because I believe that all parties knew what they had. Even without it being an iPhone prototype, they all had to have known they were doing business with stolen property, but as the prosecutors knew, it might be impossible to prove that Jason Chen knew that. Adding to that, the “illegal” search and seizure and you no longer have an open and shut case.

Either way, none of this really matters anymore. Apple got the phone back and it appeared that none of the leaks damaged any sales. In fact, that kind of press might have actually helped sales.

Apple Inc. Has More Cash Than The U.S. Government

· Brandon Hann

Amidst all the debt ceiling confusion surrounding today’s financial drama, it’s amazing to find out that a large corporation such as Apple actually has more cash on-hand than the whole United States government!

Ok, maybe it’s not such a surprise after all given that our government spends more than they bring in and when they need more cash, they practically just print it. I won’t go into all the details here, but to summarise the situation very quickly, our country has a limit to how much debt we can have. That limit is currently set at $14.4 trillion dollars. Let’s see that number in all its glory: $14,400,000,000,000 That’s a lot of money. Anyway, it appears that we’re nearing that limit and fast, so the debate is redhot: do we increase the limit to allow us to borrow more money or do we cut spending to reduce the amount borrowed?

As a result of trying to figure out how to solve this problem, politicians have let our national coffers dip to a dangerously low amount. The best analogy for this chaos is if our government was using a single credit card for all of its spending, they are reaching the credit limit. To offset this, they have practically wiped out their bank account and are now waiting to see if their credit limit will be increased. That leaves the whole United States with an unmanageable debt and only $73,768,000,000 ($73.768 billion) in the bank.

Apple Inc. currently has $76,156,000,000 ($76.156 billion). The maker of fine products such as OS X, iPhone, iPad, iPod and Macbook is theoretically richer than the whole country. How does that sit with you?!

While this $2.388 billion difference might seem like a small number, it’s really not when you consider that the country’s income is comprised of every tax-paying individual living in this country, every product exported out to the world and a slew of other things like investments, bonds, etc. Since it’s clear that the government’s income is far greater than Apple’s, the problem must lie with the spending—wow, did I just solve a major national crisis with just one sentence?! Someone please send this link to Obama and Congress. 🙂

On a sidenote, Apple is now poised to become the largest corporation on the planet (in terms of profit) after reporting an estimate $5.5 billion in iPhone sales in this year’s third quarter. Let’s see if someone can finally take down oil-giant ExxonMobil!

If you were wondering what it would be like if Apple gave all of its money to the government, you could expect the cash to run out in about a week because according to Fortune magazine, the U.S. government spends roughly $10 billion a day! Maybe the government should start selling iPods to recoup some of their losses. I guess it wouldn’t matter because I’m sure they’d find something frivolous to spend it on.

It's Official – Amazon Severs California Affiliate Program

· Brandon Hann

I just got the email today stating that Amazon Associates is no longer “doing business” with California. It appears that Governor Brown had signed into law a reform that forces online establishments to pay (and charge) sales tax on purchases.

Proponents say that the new law will create a more level playing field for smaller businesses and big-box retailers to compete with online businesses. Amazon and Overstock both feel the law is “unconstitutional” and counterproductive. In 1992, the Supreme Court ruled that states could not charge taxes on businesses that did not have a physical presence there, but California has just side-stepped that ruling by declaring that affiliates and other “partners” are in fact a physical presence. So what does this mean? Amazon will still be doing business in California in terms of sales (and charging sales tax now), but they will not be sharing any commissions with California-based affiliates. I can’t imagine how those people feel who rely 100% on those commission dollars each month!

Again, this is an effort to curb consumers from skipping out on paying sales tax by purchasing online. In other words (and my opinion), it takes the choice out of the customer’s hands. Most of us who shop online do it for convenience as well as lower prices. If California wasn’t such a very un-business friendly state, then maybe more businesses would want to take up residence here. The way I see it is California has made it near impossible to run a business in the state, so most large corporations leave. Then when they come back to sell products, California wants to charge them taxes just for doing business.

Here’s the email:

Hello,
Unfortunately, Governor Brown has signed into law the bill that we emailed you about earlier today. As a result of this, contracts with all California residents participating in the Amazon Associates Program are terminated effective today, June 29, 2011. Those California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned before today will be processed and paid in full in accordance with the regular payment schedule.

You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.

To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect your ability to purchase from Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com.

We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. As mentioned before, we are continuing to work on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.

Regards,

The Amazon Associates Team

My two cents

Personally, I didn’t make too much money off the Associates program, but that’s not the point. The fact that I can’t participate anymore really annoys me. To think that there are 6 other states who have passed similar laws and have NOT achieved any of the promised changes should be proof enough that this won’t work here. So what if the state plans to rake in about $317 million more tax dollars…do you really think they’re going to spend it wisely? Probably not…just more raises and bonuses for the upper management and more insane benefits for state workers.

Oh well, only time will tell. I hope California is doing the right thing because we’re in such a financial sinkhole it’s depressing.

Amazon Associates Closing in California

· Brandon Hann

I just got an email from Amazon in regards to my Associates account because I’m a California resident. For those that don’t know, states that collect taxes on retail purchases impose these taxes on all retailers (and anyone else) who do business in that state. For years, this has only covered those businesses with a physical presence in the state, but now, California is attempting to impose these taxes on partners and affiliates of said company as well. For example, if Amazon moved its main facilities to another state (which it did), they would not collect taxes on any items purchased in California because they don’t physically operate here. Instead, they might sell items through other business partners and affiliates that can help get items out to California residents better also without collecting taxes.

The new law simply accounts for those affiliates and business partners located in California as a physical entity, thus taxes are due to be collected. Those for the argument claim that collecting these taxes will help ease the suffering of brick and mortar operations trying to compete with big online retailers. Those against it say that these online retailers will simply close up shop in those states and work out of somewhere that doesn’t impose these taxes. For the consumers, it just means that if you live in California, you will be paying the California state tax on things you purchase online—thus prices will be higher.

Here was the email I was sent today:

Hello,
For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers – including but not limited to those referred by California-based marketing affiliates like you – even if those retailers have no physical presence in the state.

We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.

As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before the termination date will be processed and paid in full in accordance with the regular payment schedule.

You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.

To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect their ability to purchase from Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com.

We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. We are also working on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.

Regards,

The Amazon Associates Team

My two cents

I guess it would have been ok if I could still run my affiliate program to help with offsetting some of the server costs for my site even if that meant paying some taxes on it, but it looks like Amazon is taking a different route. Instead of operating under a new tax law, they’re closing down operations altogether. Of course this doesn’t mean Amazon will cease to exist as a retail establishment to California residents—it just means we won’t be able to help them sell their products while making some commission.

To read more about the online sales tax laws that are ready to be signed into law around September, check out this site.

President Obama Gets It Done

· Brandon Hann

I’ll mention up front that I haven’t been a big fan of Obama so far, but after the events that unfolded last weekend, all I can say is he got it done and got it done right. I reported the news of the events as they unfolded (with any and all incorrect details at the time) and originally, I was going to write another post about it, but there’s no need. There are plenty of news outlets where you can get all the latest updates, so instead, I just wanted to post some of my opinions.

Obama’s statement about the killing of Osama bin Laden:

httpv://www.youtube.com/watch?v=ZNYmK19-d0U

That was probably one of the best statements I’ve heard from any president in a long time. It was to the point, it said what needed to be said, it wasn’t bogged down with political rhetoric and it was as serious as it should have been.Osama bin Laden dead

I share the same sentiments that many others had when they stood out in front of the White House and in Times Square and Ground Zero in New York, but I regret not being able to be there with them. What a momentus day for all of us.

Whether you agree with his politics or not, Obama was able to accomplish in 831 days what Bush could not do in 2,686. And now, as we usher in a slightly less-dim future, who knows what’s in store for us. Some say retaliation is imminent, some say terrorism will be on the rise and others are already complaining about how we laid Osama to rest. Personally, I’m just happy to be able to say that as much as I disagree with our current leader, he had the backbone to go after the world’s most wanted man, succeed and then casually walk back to his office. The big question is, who’s next on the hit list?

Obama walks away

Bin Laden is Dead

· Brandon Hann

It’s official and president Obama is about to report it.

Osama Bin Laden is dead.

Osama Bin Laden's Body (Fake)
Osama Bin Laden's Body (Fake)

The U.S. has killed the man responsible for planning the 9/11 attacks along with many other attacks of terror including the first bombing on the World Trade Center. It’s being reported that Bin Laden was killed in a mansion outside the Pakistan capital of Islamabad.

Although the news is being brought to the world tonight, it was confirmed that Bin Laden was killed during a ground operation a week ago. The news reports were delayed while DNA tests were performed on his body. U.S. intelligence is being cited for the finding and ultimate demise of Osama Bin Laden. He was not killed by a predator drone.