Tax stupidity

It's hard to imagine that people think like B. J. Brockett, Oklahoma City, but they do. In his letter, he says:

“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.

Holy hell. Think about this for a minute: the state is saying that due to the lack of a sales tax on internet sales, the state-- meaning, obviously, the state government-- is losing ca. $200 million a year. Mr. Brockett turns around and suggests that this is just fine, because people would spend that money they saved right in Oklahoma.

Uh, OK. But we're talking about revenue for the government. You know, that thing that builds your roads and bridges and schools? That provides police and fire protection? You know? That?!? So unless Mr. Brockett is imagining that people will take their $200 million in savings and just... I don't know... send it to the government, then no, the state wouldn't "get its pound of flesh." Not unless you imagine that somehow, 4.5%-- the state's sales tax rate-- of of $200 million somehow makes up for, uh, 100% of $200 million.

So even though Mr. Brockett thinks that this missing revenue is perfectly fine, he concludes by saying

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.

Uh, wait. Did he actually just ask "does the state really lose on Internet sales"?!?!? Like, YES! The tax commission just said that, and his response was that people will just spend it in the state... where the state will get about 5% of that money. This guy is fucking stupid.

And then, uh, what's this "time and effort" thing about? News flash to Mr. Brockett: The bill to let states tax online sales was passed by the UNITED STATES SENATE. That means that virtually NO Oklahoma "time and effort" went to passing this bill. But even if it did, did Mr. Brockett miss the whole part where the Oklahoma tax commission was talking about how it's losing out on tax revenue? Because what he says is that "time and effort" would be better spent cutting spending so that... uh, the state could then lose out on more revenue by slashing more sales taxes??

This guy is truly stupid. Letters liket his-- devoid of logic or a coherent argument-- shouldn't appear in a real newspaper. It's one thing to advocate tax cuts. (Even though it seems silly right now.) But letters like Mr. Brockett's are bafflingly stupid. Nevertheless, if they push the paper's plutocratic agenda, the Oklahoman will run them.