Virginia celebrated an Energy Star Sales Tax Holiday last weekend. Residents of Virginia will enjoy not having to pay sales taxes on a variety of different products from dishwashers to compact forficate light blubs.
The TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities.
Foundation has already highlighted the numerous problems with such schemes. The best way to give shoppers a sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding.
break is to apply a low rate to a broad base, not to enact a sales tax holiday. Taking an alternative approach–if you can’t beat them, join them–Virginia has three sales tax holidays: 1) Back to school, 2) Energy Star and 3) Hurricane Preparedness.
Presumably Virginia finds these activities of special importance, worthy of being singled out for tax breaks. But aren’t there a number of other activities that might also deserve special treatment? Here are a few suggestions. (We give bonus points if the activity comes shortly before an election, as Back to School and Energy Star already do.)
1) Little American Flag Sales Tax HolidayA sales tax holiday is a period of time when selected goods are exempted from state (and sometimes local) sales taxes. Such holidays have become an annual event in many states, with exemptions for such targeted products as back-to-school supplies, clothing, computers, hurricane preparedness supplies, and more. (2 weeks before Veteran’s Day)
2) Leaf Removal Supplies Sales Tax Holiday (last weekend in September)
3) Halloween Candy Sales Tax Holiday (last weekend in October)
4) High School Graduation Sales Tax Holiday (tax-free balloons, helium tanks and mini teddy bears)
5) NFL Sales Tax Holiday (no sales taxes on potato chips and soda sold on Sunday)
6) Mother’s Day Sales Tax Holiday (tax-free greeting cards, flowers and no meals taxes on brunch)
7) Adopted Pet Supplies Sales Tax Holiday (all year–cuteness knows no season)
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