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Sales Tax Holidays

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Tennessee business tax reform and Tennessee sales tax holiday

Tennessee Looking Toward Pro-Growth Change in 2023

With other states upping their game to attract ever-more-mobile people and businesses, lawmakers and the governor are not content to leave Tennessee’s business taxes in their current, uncompetitive form.

7 min read
state tax inflation response like state tax rebates and tax holidays to combat inflation Federal tax collections inflation surging 2022

State Tax Policy as an Inflation Response

At the end of 2022, prices were 14.6 percent higher than they were two years prior. That’s the fastest inflation rate over any two calendar years since the stagflation era of the late 1970s. State policymakers are understandably interested in bringing any tools at their disposal to bear on the problem. And many of them are reaching for tax policy solutions.

7 min read
The Surprising Regressivity of Grocery Tax Exemptions See sales tax grocery tax exemptions and grocery tax credit

Clean Up on the Grocery Tax Aisle

Amidst soaring inflation, policymakers across the political spectrum proposed many ideas to soften the blow of higher prices–especially for low-income workers and families. One idea that caught on quickly: sales tax relief on groceries. The idea had its merits, but Tax Foundation research shows that it may have missed the mark.

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A Gas Tax Holiday

The cost of gas is going up. To address this, policymakers have proposed suspending the gas tax. But could this actually make matters worse? We discuss why suspending the gas tax might be a mistake and what lawmakers could do to help with the rising costs of gas.

2021 sales tax holidays by state and 2021 sales tax holiday data 2021 tax free weekends

Does Your State Have a Sales Tax Holiday?

Although state budgets may be in unusual places this year, sales tax holidays remain the same as they always have been—ineffective and inefficient.

3 min read
state sales tax holiday, tax-free weekend, sales tax holiday weekend

Sales Tax Holidays: Politically Expedient but Poor Tax Policy, 2020

In the midst of the coronavirus crisis, some states are hoping that a sales tax holiday might help restart struggling industries by stimulating the economy. However, sales tax holidays can mislead consumers about savings and distract from genuine, permanent tax relief.

45 min read

Sales Tax Base Broadening: Right-Sizing a State Sales Tax

Due in part to historical accident and also to the proliferation of exemptions, the effectiveness of the state sales tax continues to erode. The median state sales tax, which should apply to all personal consumption, is nonly applied to 23 percent of personal consumption.

27 min read