The Breakdown | Explaining Southern California's economy

Bullet Points: Gov. Brown kicks the can down the road with Amazon compromise




The governor signed legislation today that makes California's spat with Amazon over collecting e-commerce sales-tax go away — for 12 months. That's not exactly how the governor's office spun it, however. It focused on the voter referendum that was avoided, and also on job creation:

“A prolonged, costly ballot battle is a benefit to no one,” Governor Brown said. “This landmark legislation not only levels the playing field between online retailers and California’s brick-and-mortar businesses, it will also create tens of thousands of jobs and inject hundreds of millions of dollars back into critical services like education and public safety in future years. It’s time for Washington to follow our lead and forge a bipartisan national solution.”

So what does this legislation mean, exactly? I'll break it down into bullet points:

Basically, this deal just shifts what would have been a state battle to the national level. Amazon can now spend its money in Washington to influence the decision. 

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Photo: Getty Images