Online retailer Amazon.com today informed its Connecticut affiliates that it is terminating their relationship, effective immediately.  The contract terminations are the result of a new law that requires online retailers to collect tax from sales referred by Connecticut websites.

“We opposed this new tax law because it is unconstitutional and counterproductive. It was supported by big-box retailers, most of which are based outside Connecticut, 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,” the company wrote in an email this morning. 

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