Earlier this summer, Direct Agents posted an article about the proposed California State advertising tax and how it would affect affiliate advertisers. We are excited to say that due largely to the efforts of affiliates around the country who came together to put pressure on California state officials, Governor Schwarzenegger announced in a press release yesterday evening that he “remains committed to no new taxes.”

The government sponsored statement reiterated that Governor Schwarzenegger is upholding his “deep commitment to not raise taxes to solve [the California] budget deficit.” This announcement is largely a result of Overstock.com’s very public announcement that it would “pull its affiliate advertising from California due to the legislature’s proposal to increase taxes.” Overstock.com was not alone. Internet affiliate advertisers and companies throughout the nation united to bring their message and concerns to legislative powers.

Schwarzenegger said the following: “After passing the largest tax increase in California history, it makes absolutely no sense to go back to the taxpayers to solve the current shortfall - that’s why yesterday I vetoed the majority vote tax increase passed by the legislature. With unemployment at an all time high… I will continue to fight to keep jobs and businesses in California.”

According to California State laws, the congress and senate can, with a large enough majority, over-ride the Governor’s veto, but the tone of Schwarzenegger’s message makes this action very unlikely. Congratulations California Affiliates! We in New York are glad to know that the livelihoods of our fellow colleagues on the opposite coast are safe.