Sales Tax Hike’s Impact Is Real

That a study shows sales tax hikes “don’t have nearly the impact on spending as do other economic factors” is a true statement. (“What Price Hike?” March 30). But it is comparable to saying that fewer people are killed by knives than by guns. The fact is, higher sales taxes reduce sales. If that wasn’t true, why not raise it to 40% or 50%?

Mr. Takahashi, the auto dealer, says he’s never heard of sales tax affecting a sale. But he’ll never see the people that bypass his dealership and drive to San Diego or Riverside to buy their next car. The article points out that in 1967 the rise in sales tax from 4% to 5% resulted in a retail sales increase of 7.1%. But how much higher would sales have increased if the sales tax had stayed the same?

If the economists in your story think that the extra $50 spent per household per year is of minor impact, let them pay $100 next year so my friend who was recently laid off won’t have to pay any.

MARK APOIAN

Corona del Mar