Tax-Free Insanity
The annual, three-day Sales Tax Holiday begins today in Texas. During the "holiday" weekend of August 21—23rd, back-to-school shoppers get a break from state & local sales taxes on most clothing, shoes, backpacks, & school supplies priced at less than $100 purchased for use by a student in an elementary or secondary school.
Now don’t get me wrong, I’m all for being frugal and realize that even small savings can add up, but just as I wondered how did shopping become a holiday? a couple of years back, I continue to question this insanity. There’s little doubt as to our government’s underlying motives for this "holiday" — oh sure, we get a little relief from sales taxes on a few select items, but they get a massive shot in the arm from the influx of taxes on incidental purchases — purchases we’d be much less likely to make if not for this artificial incentive.
And really, unless you’re spending hundreds of dollars, an eight percent savings isn’t a tremendous net. (C’mon, we’re talking about less than a Frappuccino or two.) In fact, I suspect that if instead of this pay no sales tax all weekend event, retailers advertised a take 8% off on back-to-school purchases sale, the response would be, um, "yawn."
Rapacious retailers are, of course, banking heavily upon this "holiday" to lure budget-crunched consumers into the stores and help pry open their wallets. These annual sales tax holidays have become a huge event that extend, in many states, well beyond sensible school supplies to include big-ticket items like large electronics, major appliances, & furniture.
And the tax-free insanity doesn’t end there…
Some states also have separate sales tax holidays just for firearms. Firearms? Yup, you can get your weaponry & ammo tax-free in Louisiana on September 4—6th and in South Carolina on November 27—28th!
I've never heard of these tax-free holidays before. We have a 6% state sales tax here in Michigan and they don't offer a tax-free period.
You're right, an 8% discount isn't worth jumping up and down for but I bet a lot of lines are forming to get the break.
I can't help but be a little skeptical, it's in my nature, especially when it comes to government. It seems like the government still gets paid. I could be wrong but if a lot of people respond to the state's 'generosity' then the stores profit more and pay more taxes into the coffers than they would on any other weekend. I wouldn't be surprised if Texas actually collects more tax revenue dollars by using the 'holiday'.