Online sales tax issue makes strange bedfellows of politically disparate groups and individuals

If there is one truth in life, besides death, it is that whatever the political issue, in the end it will always be about "money". Money, it seems, can bring two different people together and separate two people who normally would have much in common. Take online sales taxes . . .

I was lucky enough to have live in the Bay Area around the time of the Internet revolution, that giddy period of time that produced The Industry Standard -- that now oft forgotten industry weekly that grew from start-up to the number one magazine in the world, before crashing out completely, all in a three years.

Back then the industry was pretty unified behind the idea that online transactions shouldn't be taxed. It was believed that collecting sales taxes would slow the growth of the Internet -- and that was anti-business. Of course, who were these Internet pioneers? Mostly liberal techies.

Then there were the more conservative business people who tended not to have much of an opinion about taxing online transactions because they were pretty sure that whole tubes thing was just a passing fade anyway. They, too, were pro-business types, anti-taxes, but they knew where their bread was buttered, and it was the brick and mortar stores that did the advertising, so their interests lay there. So these media executives went back to worrying about their print products and left the early web experiments to the dweebs.

OK, this is definitely generalizing, and I'm sure there are plenty of examples of the opposite being true, but my memory of life in the fast lane of those Internet days says this was the way it was.

So now we have today's online sales tax debate where we have Jeff Bezos and Amazon saying that collecting online sales taxes are an evil thing. So they will do what they can to avoid them, including ending its associates programs in those states that try and impose them.

In the other corner we have the state of Illinois, who now wants to tax online sales transactions, if, and this is important, the company has a physical presence in the state through employment or associates.

To be clarify why the law was passed this way one has to understand that Illinois' hands are tied by a 1992 U.S. Supreme Court ruling that said a state can only collect sales taxes on online sales if the company selling the goods has a presence in that state. So Illinois could not pass a blanket sales tax law -- once again state's rights wins out over consistent, logical policy.

The politicians who passed the law want to argue that the reason for the new law is both fairness, and the need to raise revenue. Those businesses against the law obviously see this as a setback to the advantages built-in from having lower prices due to no sales tax.

So who loves this bill? Certainly not conservatives. Read the comments on the WSJ story today:

"Illinois never met a tax they didn't like. Keep it up while the adjacent states curb unions and cut taxes," writes one commenter.

So business people hate this bill, right? Well, no, not really. In fact, the bill was supported by the Retail Industry Leaders Association, members of which include Walmart, Best Buy and other big-box retailers who, to be sure, are no friends of the Democrats.

"Gov. Quinn has taken a bold step today to help level the playing field for retailers in Illinois,"Sandy Quinn, president of a trade group, is quoted this morning in the WSJ.

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In the end we have a strange mix of supporters and opponents on this issue. Conservatives are generally against online sales taxes because, well, they are taxes. Taxes, you see, are bad. Get rid of taxes and everything is wonderful (except schools, roads, policing, fire protection, etc.)

On the other side, are the liberals, who I have found are on both sides of this debate. Many say that raising revenue is the only way to balance the state's budget, and besides, brick and mortar stores have to collect sales taxes, why shouldn't online retailers. Others are still philosophical for a moratorium on online taxes as a way of spurring Internet growth.

So did this legislation become law because Illinois Democrats love taxes and want to raise revenue. Again, no.

This bill has zero to do with revenue.

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B2B media firm Well Publishing hits the App Store by launching a tablet edition for Insurance Journal magazine

I love to talk about the mobile and tablet publishing efforts of B2B media firms. Unfortunately, there are few examples to point to at this point.

Today, on the day Apple is launching its new version of the iPad, Well Publishing has launched a new iPad app for its Insurance Journal magazine. The B2B is a BPA-audited, 42,000 circulation magazine that comes out 24 times a year.

The new app is free to download and is only a couple of megs in size. The app creates a library in which readers can then download specific issues, which are also free.

This is a very simple, but yet effective app. There is only portrait mode so the individual issues are around 80MB in size. The issues are what I would call modified replica editions. All the full page ads are you see them in the print edition, but with links built in. One thing that proved annoying is that the developers made the entire page hot, leading to some unintended clicks that took me away.

That aside, the editorial content utilizes scrolling to reveal additional pages. Modular ads -- those less than a full page -- are found here, of course.

If you are a B2B and looking for something slightly more tablet-like than only a flipbook than this might interest you. I don't know how committed Wells Publishing is to making tablet editions, though, as the latest edition available through the app is the January 24th edition, meaning that this issue is already a couple of issues behind the current one. The other two issues inside this app are from last year -- it all seems pretty random. But it is possible that the publisher has been waiting for Apple to approve the app and have it show up in the iTunes App Store. Hopefully Wells will load up the library for those who download their app.

One point, though: since most B2B magazines are free and targeted to specific industries, only "qualified" readers are usually able to subscribe -- everyone else pays. Tablet editions, therefore, create some dilemmas: do you charge for the app? Do you create a registration process? This particular app does neither -- the assumption, I suppose, being that only if you are really interested in the topic will you download the app. This is probably correct, but without a registration process the publisher (and advertisers) are pretty much in the dark about who is reading the tablet editions.

Apple pushes back shipment date on iPad 2

That didn't take long: Apple began taking orders online this morning for its update tablet, and while Apple initially promised shipments within 5 to 7 days, the company has had to revise its shipping dates. If you order an iPad 2 now it will be shipped in 2 to 3 weeks.

Is it really possible that Apple is already suffering from inventory constraints?

Unlike the original launch of the iPad, where buyers had to pre-order their tablets for initial delivery on Saturday, April 3, with limited supply at Apple retail stores, this year Apple is stocking its retail partners with tablets. Sales will begin at 5pm today at Best Buy, Walmart and Sam's Clubs locations, and at AT&T and Verizon retail stores (as well as Apple retail stores, of course).

Morning Brief: 8.9 Earthquake, followed by tsunami hits Japan; online orders for the iPad 2 now on Apple website

A massive 8.9 earthquake, off Honshu, Japan's most populous island, Centered 230 miles northeast of Tokyo, the quake produced a devastating tsunami which was captured by citizens and quickly posted online.

NYT coverage can be found here. The quake occurred at 2:46 p.m, approximately seven hours ago (it is currently 10pm in Tokyo as this post goes live. At least 60 people are confirmed dead due to the tsunami at this time. The Guardian is reporting that "up to 300 bodies found in Sendai" -- obviously the death toll will climb through the night there.

A 6.5 foot tsunami was expected to reach Kauai at 3:07 this morning -- approximately 20 minutes ago. An 8.2 foot tsunami passed Midway Island according the to National Weather Service.

Two videos of the tsunami:

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The US vetoed efforts to create a no-fly zone in Libya, defeating efforts by France and UK to end the use of air strikes by forces loyal to Col. Muammar el-Qaddafi. Washington is increasingly seen as resigned to the fact that Qaddafi's regime may hang onto power, to the frustration of US European allies.

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Bradley Manning, the US soldier accused to releasing diplomatic cables to WikiLeaks, has released an 11-page letter through his lawyer. In the letter, Manning describes his treatment at the hands of officials at the Quantico Marine base in which he is being held.

"I was stripped of all clothing with the exception of my underwear. My prescription eyeglasses were taken away from me and I was forced to sit in essential blindness," Manning is quoted in the letter, the contents of which were published last night by The Guardian.

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Online orders are now being taken on Apple's website for the new iPad 2. In the US online store buyers can order both black and while models, Wi-Fi-only models or 3G models that work on either the network of Verizon or AT&T. The Apple online store quotes delivery times of 5 to 7 days.

Retail store sales begin at 5pm today as Apple appears to desire to create a PR coup with pictures of long lines and happy customers. Late Friday afternoon is usually a slow news time -- often used by the White House and other government agencies to dump bad news stories in hopes they will get ignored by the media.

The grand plan, however, appears to have been preempted by events such as the tsunami in Japan.

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Reactions to Amazon's move to kill its associates program in Illinois have been mostly

Amazon terminates associates program in Illinois due to new law requiring sales tax collection from online retailers with employees or associates within the state

Backing up its pledge to end its associates program in Illinois if the legislature passed, and the governor signed new tax rules, Amazon has notified its Illinois affiliates that it is terminating the program.

(Talking New Media has been part of the program since the launch of this site, and thanks to the buying habits of our readers, TNM has earned . . . zip. Thanks guys. Oh well, guess this move won't hurt TNM much.)

Here is the notification:

Hello,

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

We had opposed this new tax law because it is unconstitutional and counterproductive. It was supported by national retailing chains, most of which are based outside Illinois, 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 its enactment forces this action.

As a result of the new law, contracts with all Illinois affiliates of the Amazon Associates Program will be terminated and those Illinois residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, or SmallParts.com. Please be assured that all qualifying advertising fees earned prior to April 15, 2011 will be processed and paid in full in accordance with the regular payment schedule. Based on your account closure date of April 15, 2011, any final payments will be paid by July 1, 2011.

You are receiving this email because our records indicate that you are a resident of Illinois. If you are not currently a permanent resident of Illinois, 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 after April 15, please contact us for reinstatement into the Amazon Associates Program.

To be clear, this development will only impact our ability to continue the Associates Program in Illinois, and will not affect the ability of Illinois residents to purchase online at www.amazon.com from Amazon’s retail business.

We have enjoyed working with you and other Illinois-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 Illinois residents.

Regards,
The Amazon Associates Team

iOS 4.3: Personal Hotspot, and the issue of connectivity

One of the more highly anticipated features of the recent Apple mobile operating system upgrade involves Personal Hotspots. This is a feature where you can use your iPhone's 3G data connection to create a mobile WiFi network, this will enable your PC, Mac, or iPad to get online when an open WiFi network is not available.

This feature is not something very, it's just new to Apple. Other smartphones, and other carriers have allowed this to occur, so this is another example where Apple is not first to offer something, instead they offer it when they feel it is ready.

For journalists and bloggers on the road this is going to to an indispensable, and much appreciated new feature -- and absolutely vital if you want to use your WiFi-only iPad while on the road.

If you are an iPhone 4 user here is how you activate your Personal Hotspot:

First, assuming you are an AT&T customer, you have to have the 4 GB data plan. If you currently have an unlimited data plan, and you use a lot of data you are hosed -- either you give up your unlimited data or you give up the idea of the Personal Hotspot. Big data users that still have their unlimited plans should think long and hard before giving them up.

But since I usually have access to WiFi, I don't use nearly as much data as you would think, considering that I both listen to the radio and watch Al Jazeera English on my iPhone!

Users need to go to the AT&T Wireless website, sign-in then look for their phone (if they have multiple phones on their account). The data plans are listed under "Features" not rate plans. Change your plan to te 4 GB plan and you are just about there.

Then all that is necessary is to go back to your phone to set-up the hotspot. The setting is found under Settings > General > Network. You can also access the AT&T website this way, though it is probably easier to do it on your computer or laptop in advance of travelling.

The Personal Hotspot assigns your device a network ID and password that can be used by your iPad or laptop. Then it is pretty easy to use, just look for the right network on your iPad and sign-in. Easy.

Network speeds using tethering, as this process is called, is dependent on your 3G data speeds, with AT&T being pretty good. But even though your iPad or laptop will be accessing the web via WiFi don't expect typical WiFi speeds -- unless you are used to the WiFi found in airports, in which case you will be pretty happy.

As I mentioned the other day, getting your web connection through WiFi via a hotspot creates a weird situation on the iPad 2. The tablet from Apple will come with cameras and FaceTime software allowing users to conduct video calls. But these calls only work if the iPad 2 is access WiFi, not its own 3G. But if the iPad 2 is on WiFi, even if that WiFi is coming from a Personal Hotspot through the iPhone's 3G connection, FaceTime will work -- though it might be choppy. We'll see.

In any case, I really wish this Personal Hotspot feature had been available the last time I travelled to the West Coast. On that trip I simply did the best I could, spending far too much time at the local Starbucks. The other option, before the iOS 4.3, was to jailbreak your iPhone, but that seems like a waste of time to me now.

All this is great news for journalists with iPhones, and those considering iPads for reporting. With Apple introducing iMovie for both iPhones and iPads, a reporter could quickly shoot some video with their iPhone, edit it with their iPad, and load it online pretty quickly. Maybe we'll see some improvement in those hastily shot news videos now.