Tens of thousands of Hungarians rallied to protest a proposal to create a tax on internet usage in Hungary. In response to the first protest on Sunday, the Hungarian government limited its proposal.
The Mississippi House of Representatives is considering a bill that would create a new state sales tax holiday for firearms, ammunition, and other hunting equipment, similar to a firearm holiday in neighboring Louisiana. The bill cleared the House Ways and Means Committee last Tuesday.
[A]rchery equipment, accessories, animal feed, apparel, shoes, bags, float tubes, binoculars, tools, firearm and archery cases, firearm and archery accessories, range finders, knives, decoys, tree stands, blinds, chairs, optics, hearing protection and enhancements, holsters, belts slings, and off-road vehicles and vessels such as all-terrain vehicles, airboats, pirogues and other boats.
The legislation’s sponsor, House Ways and Means Committee Chairman Jeff Smith, touted that the holiday “covers everything but the lunch you bring with you.”
Mississippi already has one tax-free weekend in the summer for clothing under $100. Sixteen other states have similar holidays for items such as back-to-school supplies, computers, and Energy Star appliances (check out our report on the topic for more details).
We’ve often been critical of sales tax holidays in the past—most recently in response to a proposal by Florida Governor Rick Scott. Below are the arguments we made against them then, but they’re equally relevant here:
The bill doesn’t have a fiscal note yet and awaits further action in the House. Mississippi lawmakers should remember that sales tax holidays are a gimmick—not real tax reform.
Join the Tax Foundation's fight for sound tax policy Go
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.
In the past three decades, the importance of “pass-through” businesses has grown substantially. The combined net income of sole proprietors, LLCs, Partnerships, and S corporations has increased fivefold and now accounts...