Multi-State – Study: Sales Tax Holidays Don’t Help States’ Economies


A Tax Foundation report calls the holidays a ‘political gimmick.’

SALES TAX HOLIDAYS, where states temporarily remove state and sometimes local taxes from certain products, are not actually beneficial to the economy and low-income residents, according to a recent study by the Tax Foundation.

Though the holidays are meant to encourage residents to shop locally and not across state borders and to provide a tax break for low-income consumers, the authors say sales tax holidays don’t fulfill these goals. In reality, the report argues that they actually harm some businesses and don’t offer low-income citizens the low prices they expect.

Many of the sales tax holidays are centered around back-to-school items, clothing and a few other select items, meaning that businesses that don’t sell these products can suffer from lower sales, according to the report.


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U.S. News & World Report
by casey leins
july 29, 2019