How Did Shopping Become a Holiday?

tax-free graphicThe new school year is just around the corner and along with it comes the much-anticipated 2007 back-to-school sales tax holiday.   On the specified days, you’ll be able to purchase children’s clothing, shoes, & certain other merchandise (of less than a $100 value) tax-free.   You can view the tax-free holiday dates for most states on the Raising 4 Boys website.   If you’re in Texas, you can follow this link to view a list of selected items and their exemption status (either tax-free or taxed) that will be in effect on the weekend of August 17-19th.   Now I’m all for having another holiday (especially if I get the day off) but is this occasion really a "holiday" or is it more of a scam?

According to the American Heritage Dictionary, a holiday is defined as:

A day free from work that one may spend at leisure, especially a day on which custom or the law dictates a halting of general business activity to commemorate or celebrate a particular event.

Sales tax holidays are a temporary suspension of state & local sales taxes charged on certain items that are quickly becoming a huge annual event in many states — perhaps even rivalling that other notorious shopping holiday: Black Friday.   I applaud anyone savvy enough to make the most of this slight savings that this opportunity (potentially) offers, but is this really worthy of being deemed a "holiday?"   And I’m more than a little suspicious of the motives behind this annual outpouring of generiousity.

For starters, it should come as no great surprise that the biggest fan of these tax-free holidays is the retail industry — this feeding frenzy gives businesses a sorely needed influx of income to stave off the pre-Christmas sales slump.   Some retailers that normally might reduce prices during the back-to-school season hold off on doing so and, in some rare cases, may actually increase prices on key items.

Secondly, these tax-free bonanzas steamroll consumers into purchases that retailers want them to make.   For example, you might have every intent to equip your child with a nifty messenger-style bag, but because that type of bag is exempt from the tax-free incentive, you’re subtly steered towards a backpack instead.   This isn’t necessarily a bad thing, just so long as you’re aware of the manipulation tactics being used on you.

So, is Uncle Sam looking out for our interests, seeking to help us poor consumers stretch our meager earnings?   Or is it more likely that we’re being ever-so-slyly pushed to shop, shop, shop until we drop — into the poorhouse?   Is this just a scheme to herd us like cattle into the stores where we’ll graze needlessly on goods that we might not have otherwise splurged on without the artificial incentive?

Whatever the case, how will you be spending the tax-free holiday?
 

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