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25,000 California Businesses Applaud Efforts to Let Them Get Back to Work

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A pending referendum would allow thousands of small businesses in California to go back to earning income after the recent job-killing tax law nearly wiped them out

CAMARILLO, Calif., July 12, 2011 /PRNewswire-USNewswire/ — The Performance Marketing Association (PMA) offers its resounding support for a referendum to reverse the devastating effects of the recent passage of the California budget trailer bill (ABX1 28).

Rebecca Madigan, executive director of the PMA, said, “We are overjoyed to see a proactive campaign launched that could allow the 25,000 California web-based businesses that PMA represents to get back to business by countering the recently signed nexus tax legislation.”

These businesses, known as Affiliate Marketers, make their livings from advertising on their websites. According to the PMA, performance marketing is a thriving and growing Internet technology industry; however, this new law already has choked off start-up companies, venture capitol projects and affiliate marketing websites. The referendum to overturn the nexus tax gives Californians a chance to reestablish the state as the birthplace of Internet technology, preserve current California businesses, and nurture its cutting-edge technology culture. These are real Californians who want to get back to work and bring jobs and investments to the state.

Ms. Madigan stated, “We have said all along this tax will not garner any additional sales tax revenue for the state, but would instead result in an immediate 25%-35% drop in Affiliate Marketers’ income, which could translate into the layoff of thousands of people statewide and businesses moving to other states, or perhaps even closing.” This referendum effort is a vehicle for Affiliate Marketers to continue to do business in California, which translates to real income for the state as these businesses pay their income tax, employment tax, plus other taxes. This translates to real income to the state, not the illusory gains falsely promised.

“The voters of the state were promised they would be the determining factor in new taxes,” said Ms. Madigan. “They were denied that opportunity with this nexus tax, and we are pleased they will now have the opportunity to weigh in on this issue that is a matter of keeping 25,000 California-based businesses up and running.”

The Performance Marketing Association (PMA) is the national trade association representing Affiliate Marketers. The not-for-profit trade association was founded in 2008 by the leaders of the performance marketing industry. The PMA gives performance marketers a unified voice to address issues and challenges facing the industry, such as the “nexus tax” proposed in some states.

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