This letter to the editor of the Oklahoman — well, its heart is in the right place, but its brain seems to be on backorder from Amazon:
“U.S. Senate passes bill to let states tax online sales” (Business, May 7) quotes the Oklahoma Tax Commission in saying the state loses $185 million to $225 million in tax revenue from Internet sales each year. If the state loses that much, then some citizens gained an equal amount in savings. And where would these citizens most likely spend that savings? Right here at home! The state would get its pound of flesh when those savings were spent.
So does the state really lose on Internet sales? Time and effort would be better spent in figuring ways to cut government spending to reduce taxes, including eliminating the sales tax on food and clothing.
Which would result in savings to some citizens, which would be spent — where, exactly, and on what?
The real problem here, though, is not so much with the letter as with that gratuitous term “loses”: why, we’d have that $185-225 million if it weren’t for, um, the fact that no law currently allows us to take it. Obviously we should have more laws to allow the state to not “lose” money, right?
But hey, this spate of pooch-screwing was aggravated by having these alleged “sales tax holidays” in which tax is charged, no matter what you heard: the prices are simply adjusted downward by the amount of the tax. Sales tax, we learn from these things, is purely arbitrary, and subject to the whim of the government. And of late, fewer of us are inclined to indulge their whims.