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Amazon has filed a lawsuit against the implementation of a new tax policy that would require online stores to collect sales taxes from their affiliates who embed advertising links on their site to drive more sales for retailers. Amazon calls the new tax policy, which was enacted a couple of weeks ago, as “invalid, illegal and unconstitutional,” as it dictates that retailers who would earn at least $10,000 of annual from affiliates in New York must collect sales taxes from those sales to be paid to the New York government.

The new Tax Policy has been receiving mixed reactions even from those not directly involved with the issue. Traditional retailers for one, have welcomed the new tax policy and believe that it would benefit them as it will eliminate the competitive advantage that online retailers have over them. Some critics on the other hand argue that this new policy would be an added burden to online retailers and their affiliates. Tax experts meanwhile, were not surprised with the new tax policy but they were afraid that should the law get upheld, this might establish a precedent which may be followed by other states.

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