One of the provisions under consideration in the tax extenders discussion is a reinstatement of 50 percent bonus expensing for equipment. This would strengthen investment spending and boost the sluggish recovery. It has...
- Bloomberg Highlights Tax Foundation Sales Tax Holiday Special Report
Bloomberg Highlights Tax Foundation Sales Tax Holiday Special Report
By Esme E. Deprez
Illinois, Florida and Maryland will offer sales-tax holidays for back-to-school shopping this year, bringing the number of states doing so to 18, even as officials cope with record budget deficits.
The Tax Foundation said in a report today that states implementing tax holidays in 2010 may reach a record-high of 19 if Massachusetts approves a proposed two-day exemption in August for merchandise costing less than $2,500. Sixteen states had sales-tax holidays last year and 17 offered them in 2008, the foundation said.
The tax moratoriums don't prop up economic growth or significantly boost consumption, according to the Washington- based research group. Instead, they alter the timing of purchases.
"Sales-tax holidays are gimmicks designed to win political points for lawmakers," Mark Robyn, who co-wrote the report with Joseph Henchman and Micah Cohen, said in a statement. "If lawmakers want to cut taxes, they should do so in a way that benefits everyone, no matter what they purchase or when they purchase it. Unfortunately, sales-tax holidays only distract from genuine, permanent tax relief."
How do taxes in your state compare nationally? This convenient pocket-size booklet compares the 50 states on many different measures of taxing and...
The author would like to thank Zachary Bartsch for his assistance on this report.
Retail sales taxes are one of the more transparent ways to collect tax revenue. While graduated income tax...
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