You’d better read the fine print if you planned to take advantage of the upcoming sales-tax holidays to stock up on your back-to-school necessities or any other purchases for the fall season.
While tax holidays can help retailers promote their businesses and save consumers some money, they are also criticized by groups like the Tax Foundation as being ineffective and inefficient.(Photo:iStock)
Sales-tax holidays are brief exempt periods when certain consumer goods, including school supplies, footwear, clothing, and even computers, are not subject to sales taxes.
Most states don’t provide sales-tax holidays, particularly those in the West. Furthermore, critics assert that sales-tax holiday is ineffective at boosting the economy because they merely change the timing of purchases. They probably aren’t worth your time if you don’t reside in a state that offers sales-tax holidays.
Nevertheless, sales-tax holidays are still widely accepted and are justified in part by the fact that many states have budget surpluses they can distribute to taxpayers, according to a recent update by the Tax Foundation.
READ ALSO: Oldest Americans Are The Happiest, According To Research
Here’s what critics say about sales-tax holidays. While sales-tax holidays can help retailers promote their businesses and save consumers some money, they are also criticized by groups like the Tax Foundation as they say Sales-tax holidays are ineffective and inefficient.
Because income eligibility is not a requirement, the dates and items excluded are arbitrary, and lower-income consumers typically don’t benefit any more than wealthier households. For businesses, complying with these tax breaks can be a hassle.
READ ALSO: Biden’s SAVE Student Loan Repayment Plan – Here’s What You Need To Know To Qualify
