Hypothetical Mean

Commentary from an Actuarial and Economic Perspective

State Sales Tax Holidays

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Economic downturns usually hit state budgets hard.  This is why I’m confused as to why states would continue and defend state sales tax holidays.

What’s the point of a short-term “psychological” benefit when it comes at the cost of jobs and state services?  Not to mention the rather obvious complication that retailers will refrain from offering their own sales, instead relying on the state discount to lure customers.

Compared to this, the gas tax holiday looks like rocket science.

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Written by Victor

August 10, 2008 at 5:08 pm

Posted in Economics

Tagged with ,

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