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.
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.
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.