Wal-Mart (WMT) Wooing Amazon (AMZN) Affiliates

In an attempt to attract affiliates associated with Amazon.com (NASDAQ:AMZN), Wal-Mart (NYSE:WMT) has placed a note on its website saying it “welcomes Amazon and Overstock California affiliates.”

This is a reference to the large number of potential affiliates which could point traffic toward Wal-Mart.com, based on Amazon.com's assertion it would cut its ties with California affiliates if the legislature passes a law in the state forcing the company to collect state sales tax, even though they have no physical presence in California.

The plan has backfired on states who have attempted to re-write the rules of commerce, as Amazon has ended its affiliate programs in Hawaii, North Carolina and Rhode Island once the states passed the same type of law.

Not only that, but the states are being hurt because of the tremendous loss of income from those residing in the states, who would have also spend money there. Typical government stupidity and ignorance.

What California and others must do is begin to reduce the size of government, quit making promises they can't keep, and get out of the way of businesses which are actually adding something the economic welfare of Americans and others, and not just consuming via endless social agendas which are obviously unsustainable.

For Wal-Mart, this is a smart move, assuming California takes the steps they're attempting to take, as they already have a physical presence there, and have nothing to lose by showing an interest in affiliates if they are cut off by Amazon.com.

As far as California, Amazon affiliates reportedly paid $124 million in taxes to the state, and to lose that in order to attempt to extract even more from a quality company like Amazon will result in even more pain, rather than being helpful.

Wal-Mart closed Wednesday at $51.97, down $0.10, or 0.19 percent. Amazon.com closed at $172.02, gaining $2.58, or 1.52 percent.