Cause and Effect in California -- Cause: Raise taxes on evil, rich corporations. Effect: Everyone suffers.

California's recent attempt to raise new taxes on Internet retailers like Amazon and Overstock has had the predictable consequence. It is hurting small businesses and entrepreneurs. In order to avoid the tax, Amazon killed off its affiliate programs in the state, halting a reliable revenue stream for thousands of small businesses and individuals.

Consider this Exhibit 42,303 in our library of evidence proving that liberalism is the philosophy of the stupid.

Amazon, Overstock thumb nose at California tax

San Francisco Chronicle, Sunday, July 3, 2011

So, I went online Friday looking to buy a copy of John Kenneth Galbraith's "The Affluent Society & Other Writings, 1952-1967." Thought it might be timely to revisit the Harvard economist's distinction between "private affluence" and "public squalor."

Barnes & Noble's website was selling it for $26.53. Total, which included California sales tax: $28.79. "Total Before Tax" at Amazon.com: $26.40. "Estimated Tax To Be Collected: $0.00."

At Overstock.com, I could still buy furniture and various knickknacks free of the 7.25 percent tax, even though California's law mandating out-of-state Internet retailers to start collecting the taxes was now in effect.

In other words, screw you, California, and your laws.

"They're not intending to comply, by all indications," said Betty Yee, former chairwoman and current member of the state Board of Equalization, the agency charged with implementing the law. Friday evening, the board posted a "special notice clarifying the obligations of out-of-state retailers" on its website...

"So, we'll bill them at the end of this quarter, based on estimates either they provide or we come up from other data sources. Then, if they don't come forward and pay, we'll consider other courses of action."

That most likely means litigation, or, as Amazon and Overstock might see it, a game of "catch us if you can."

I believe our educational system has to be reformed to teach two simple concepts to liberals.

• Economics is not a zero-sum game.

• Businesses do not operate to fund government; they are in business to make money. And if they can't do so, they go bankrupt or relocate.

Not overly difficult, true, but these basic tenets are rocket science to the doltish nincompoops on the Left.