Wisconsin's favorite college dropout and 2010 gubernatorial failure, Scott Walker, announced an absolutely hair-brained and completely implausible plan over the weekend to tell the state that it should use its stimulus money to sponsor a sales tax holiday.
Let's count the myriad of ways in which Scott Walker once again proves that he is dumber than someone with a college degree who understands the law and can read a newspaper. I will be playing that role in this argument, though many of you, dear readers, could do it just as well or better.
We'll begin with the fact that in order to do this, state and federal law would need to be changed. According to the MJS, Walker says he's happy to lead the fight to do this. Of course, why anyone at the federal level would want to listen to Milwaukee County's greasy-haired failure of a county exec is totally beyond me. Walker has no pull, no authority, and no clout with anyone. But hey, this looks great on a press release!
Let's say that, in some parallel universe, this were possible. Sales tax holidays typically do little to encourage additional spending, since people in states with sales tax holidays simply defer essential spending until the designated weekend. It's not like retailers make out like bandits, either. Because everyone is deferring spending until these weekends, stores are usually forced to slash prices more than usual in order to get people through the doors. That means less profit. It's a push for stores, a loss for the state, and consumers end up not spending any more money than they would anyway. Epic stimulus fail!
Even better is Walker's supposed justification for the idea. According to the MJS, Walker believes that a "sales tax hiatus could prove to be a bonanza for Wisconsin merchants if residents from neighboring states flocked to Wisconsin for purchases of cars, appliances and other big-ticket items."
Hmmm. Okay. Again, Walker proves his whorish, know-nothing bonafides.
First of all, state use tax laws typically require that a consumer who resides in a state pay tax on any untaxed item that is brought into the state for use in that state. That means that people from Illinois who come to plunder Wisconsin's stores would legally owe use tax on that to Illinois. So unless Scott Walker is encouraging people to break the law, folks from Illinois would come to Wisconsin, buy stuff here, and then pay the tax to Illinois. Brilliant!
Me personally, I prefer my elected officials to not encourage breaking of the law, but maybe I just have higher ethical standards than conservatives. Yeah, I probably do. But that's beside the point.
Furthermore, let's consider Walker's specific mention of vehicle purchases. Most states require proof that tax has been paid on a new vehicle when the vehicle is imported and titled in your home state. Otherwise, guess what? You have to pay the difference to your state of residence! Such is the case in Illinois, for instance, unless you leave the vehicle out of the state for 90 days prior to import. It is always the case in Minnesota when a resident purchases a vehicle out-of-state. Does Walker think dealers in Racine are going to sell cars to Illinois residents on lay-a-way?
Besides that, the feds are already ponying up to refund sales tax payments on new vehicle purchases. So in Walker's example, Wisconsin would collect no tax, Illinois or Minnesota would, and the consumer would have their state sales tax refunded to them by the federal government. Illinois and Minnesota win! Wisconsin loses! Yay stimulus!
The only thing that Scott Walker needs is some stimulus to be a good role model and finish his college education. Perhaps he could take a class in economics or common sense to help him in his current job. Clearly he's in need of it.
Let's count the myriad of ways in which Scott Walker once again proves that he is dumber than someone with a college degree who understands the law and can read a newspaper. I will be playing that role in this argument, though many of you, dear readers, could do it just as well or better.
We'll begin with the fact that in order to do this, state and federal law would need to be changed. According to the MJS, Walker says he's happy to lead the fight to do this. Of course, why anyone at the federal level would want to listen to Milwaukee County's greasy-haired failure of a county exec is totally beyond me. Walker has no pull, no authority, and no clout with anyone. But hey, this looks great on a press release!
Let's say that, in some parallel universe, this were possible. Sales tax holidays typically do little to encourage additional spending, since people in states with sales tax holidays simply defer essential spending until the designated weekend. It's not like retailers make out like bandits, either. Because everyone is deferring spending until these weekends, stores are usually forced to slash prices more than usual in order to get people through the doors. That means less profit. It's a push for stores, a loss for the state, and consumers end up not spending any more money than they would anyway. Epic stimulus fail!
Even better is Walker's supposed justification for the idea. According to the MJS, Walker believes that a "sales tax hiatus could prove to be a bonanza for Wisconsin merchants if residents from neighboring states flocked to Wisconsin for purchases of cars, appliances and other big-ticket items."
Hmmm. Okay. Again, Walker proves his whorish, know-nothing bonafides.
First of all, state use tax laws typically require that a consumer who resides in a state pay tax on any untaxed item that is brought into the state for use in that state. That means that people from Illinois who come to plunder Wisconsin's stores would legally owe use tax on that to Illinois. So unless Scott Walker is encouraging people to break the law, folks from Illinois would come to Wisconsin, buy stuff here, and then pay the tax to Illinois. Brilliant!
Me personally, I prefer my elected officials to not encourage breaking of the law, but maybe I just have higher ethical standards than conservatives. Yeah, I probably do. But that's beside the point.
Furthermore, let's consider Walker's specific mention of vehicle purchases. Most states require proof that tax has been paid on a new vehicle when the vehicle is imported and titled in your home state. Otherwise, guess what? You have to pay the difference to your state of residence! Such is the case in Illinois, for instance, unless you leave the vehicle out of the state for 90 days prior to import. It is always the case in Minnesota when a resident purchases a vehicle out-of-state. Does Walker think dealers in Racine are going to sell cars to Illinois residents on lay-a-way?
Besides that, the feds are already ponying up to refund sales tax payments on new vehicle purchases. So in Walker's example, Wisconsin would collect no tax, Illinois or Minnesota would, and the consumer would have their state sales tax refunded to them by the federal government. Illinois and Minnesota win! Wisconsin loses! Yay stimulus!
The only thing that Scott Walker needs is some stimulus to be a good role model and finish his college education. Perhaps he could take a class in economics or common sense to help him in his current job. Clearly he's in need of it.
5 comments:
Maybe he's sad that Wisconsin failed to make headlines on Black Friday with our very own Wal-Mart trampling or Toys-R-Us shooting. I think I remember hearing that retailers didn't come out so well on that big shopping day either, for the very reason you cite (deep discounts needed to lure shoppers who were going to make all their purchases that day).
right. on.
I can't wait to see what gems he comes up with running up to 2010. Should be a banner campaign for laughs.
For someone that couldn't make it in Wisconsin politics and no longer lives in the state...you sure spend a lot of time spreading your theories about Wisconsin politics.
That'd be *chose* not to make it, thanks. Big difference. I cashed in my AssGOP stock when it was trading at an all-time high. Guess I was smarter than the average bear.
Besides, I still know more about Wisconsin politics than most of the people trying to hack it up there. Someone has to educate the masses.
Anon:
You should be grateful RS isn't still in WI--be just one more GOP staffer competing for A LOT less jobs. Plus, no argument about the comments on Walker? He is an idiot who made an stupid proposal with little basis in reality. Bring on '10.
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