What: Just as departments stores across the country started to show signs of life, a New York sales tax increase of 4 to 4.5% rains on everybody’s parade. To boot, clothing purchases of $110 and up are not exempt. 

From The New York Times:

“If Albany goes along with the proposal, which Mayor Michael R. Bloomberg has described as essential, the sales tax in the five boroughs would rise to 8.875 percent from 8.375 percent.”

What We Say: Good grief. We imagine this way of thinking will eventually rub off on other states, and we don’t see it “fixing the economy.” If anything, it’ll just be another reason for consumers to not shop, and that’s the last thing retailers need right now. For many checkouts, the extra pennies won’t be noticeable, but for larger shopping sprees, it’s gonna to hurt a little. So much for those sales tax holidays we were dreaming about…

More than anything, it’s the philosophy behind this measure that really worries us. Aren’t the people who are struggling in this economy the most going to be the ones who fit the bill to get it repaired?

Seems a little backwards and short-sighted to us… but what do you think? If your home state increased the sales tax, would you be okay with it? 

 

Photo by MannequinDisplay.