Tulsa World: Needed: Reform, not Santa Claus

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Needed: Reform, not Santa Claus

By Staff Reports
Published: 9/2/2009 3:03 AM
Last Modified: 9/2/2009 3:03 AM

In attacking the Tax Foundation's exhaustive report, which found that sales tax holidays are little more than political gimmicks, state Sen. Jay Paul Gumm, D-Durant, boasts that such holidays save millions of dollars for Oklahoma families ("Report doubts tax-free effects," Aug. 28).

This is just political rhetoric and wishful thinking. Our research finds that these savings are actually tiny, and are nothing compared with the real-world consequences of compliance costs, labor misallocation, inventory crunches and price distortions. It's also nothing compared with Oklahoma's nearly $7 billion state government budget.

The Oklahoma tax holiday's arbitrary list of eligible products is so narrow, and the holiday length so short, that for many Oklahomans a 4.5 percent discount isn't worth the lines and crowds.

Gumm pretending to be Santa Claus with other people's money may be politically popular, but it's not good tax policy. A state that needs a holiday from its tax system, or that sees its residents traveling across state lines to shop, is a state with a broken tax system.

If Gumm thinks the sales tax is too high and is concerned about saving Oklahomans millions of dollars, then he should work to cut the sales tax rate year-round.

Joseph D. Henchman, Washington D.C.

Editor's note: Henchman is tax counsel and director of state projects for the Tax Foundation.

Letters to the editor are encouraged. Each letter must be signed and include an address and a telephone number where the writer can be reached during business hours. Addresses and phone numbers will not be published. Letters should be a maximum of 250 words to be considered for publication and may be edited for length, style and grammar. Letters should be addressed to Letters to the Editor, Tulsa World, Box 1770, Tulsa, Okla., 74102, or send e-mail to letters@tulsaworld.com. By Staff Reports

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	Report Comment droopy, wagoner (9/2/2009 7:21:50 AM) Well said, Mr. Henchman. I couldn't agree more.
	Report Comment billy8, Sand Springs (9/2/2009 10:45:55 AM) Where is the place where they only pay 4.5% sales tax? We pay anywhere from 8 to 9.5% depending on where you shop and live. If they really want to give us all a good tax break, take the tax off groceries. I get soooooo mad everytime I have to pay a tax to survive and live. If I didn't have to eat I could save a lot. TAX FREE GROCERIES, DO YOU HEAR ME NOW!!
	Report Comment Mar, Tulsa (9/2/2009 10:59:05 AM) I agree, since everyone has to eat to live, there should be no sales tax on groceries. Better yet, if the Fair Tax was the law of the land, that would be even better.
	Report Comment IrishQuaker, Tulsa (9/2/2009 11:39:23 AM) bILLY8, Right on. I agree. Eight percent on food is immoral. We should be embarassed. Other states don't charge sales tax on groceries.
	Report Comment psychedelikrelik, Tulsa (9/2/2009 12:19:04 PM) Mr. Henchman. Great name. Gov't Indoctrination Center, I had the same thought.
	Report Comment just passing through, (9/2/2009 12:32:23 PM) The writer of this letter fail to point out that the law was passed in response to the fact that almost every other state surrounding us has similar 'holidays' and that our merchants were losing sales to those states on this weekend. I suggest the letter writer ask some Oklahoma consumers what they think of the law before telling us what is good for us.
	Report Comment 52favoriteteacher, Washburn--used to be Broken Arrow (9/2/2009 4:48:56 PM) Billy--you are right on
	Report Comment Stupid is, as Stupid Does, Owasso (9/5/2009 12:17:08 AM) Simply put, if the government has money to give away, they should've taken it in the first place. If they can afford tax holidays, they should reduce the tax burden...nothing but a political gimmick.

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