6 Fiscal Problems with Sales Tax Holidays.

According to a new study released this week from the Tax Foundation, state sales tax holidays preent 6 fiscal problems for states.

16 states have sales tax holidays. Only Texas & Lousianna have 3 separate weekends of different sales tax holidays.

99 problems might be an issue for some, for sales tax holidays, its’ these 6 fiscal problems:

• Do not promote economic growth
• Discriminate arbitrarily among certain products and industries
• Mislead consumers about real savings
• Cause complexity and instability in the tax code
• Are not an effective means of relief for low-income consumers
• Are gimmicks that distract policymakers and taxpayers from genuine, permanent tax relief

Tax Foundation | Sales Tax Holidays: Politically Expedient but Poor Tax Policy, 2017