A little while ago, we mentioned that the National Retail Federation (NRF) proposed tax holidays as a strategy to stimulate the economy and get folks back into stores. And even though Congress didn’t listen to this advice when it crafted the stimulus bill, Kansas may be getting some soon. So, we figured we’d let you in on what a tax holiday could mean for your state – after all, now’s about the time your local lawmakers might consider them.
Essentially, the NRF “called for states to eliminate sales tax for 10-day periods in March, July and October to help stimulate consumers to purchase more goods. The government would reimburse states for the lost revenue.” The predicted amount of money each American family would save? $175. May not pay the mortgage, but just about everyone’s counting their pennies these days. Well, the federal government hasn’t come to our rescue with sales tax-free weekends (yet), but that doesn’t mean your state government is going to leave you out in the cold.
According to the SalesTaxConnection.com, 13 states have sales tax holidays slotted for 2009, including Washington DC and Texas. And it’s not crazy to “expect more as the year progresses.” Our tip? Don’t buy more stuff on a sales tax holiday – buy the same amount of stuff you’d normally buy. Otherwise, you’re not really saving, are you? (The irony is the whole purpose of sales tax holidays, from the government’s POV, is to get you spending more. Woops.)
Do you live in a state with a sales tax holiday? If so, will it influence your shopping habits?