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1 Mark Robyn, et al., Sales Tax Holidays: Politically Expedient but Poor Tax Policy 1 (2009)

handle is hein.taxfoundation/srcabxz0001 and id is 1 raw text is: ugi't 2000 rk RobnEecy At first glance, sales tax holidays seem like aEconomistStt h great policy. They enjoy broad political support, Ssta hoiasaeproso t when ficah Cohen selected goods are exempted from state (and with backers arguing that holidays are a highly djunct Scholar sometimes local) sales taxes. Such holidays have visible form of tax cut and provide benefits to )seph Henchman become an annual event in many states, with low-income consumers. Politicians and other ax Counsel 6- Director of exemptions for such targeted products as back- supporters routinely claim that sales tax holi- tate Projects to-school supplies, clothing, computers, hur- days improve sales for retailers, create jobs, and ricane preparedness supplies, products bearing promote economic growth. the U.S. government's Energy Star label, and Despite their political popularity, sales tax even guns. High-tax New York State sparked holidays are based on poor tax policy and dis- tract policymakers and taxpayers from real, the trend in 1997 as a way to discourage 'border .1 shopping. In 2009, 16 states will conduct sales permanent, and economically beneficial tax tax holidays (see Table 1). reform. Sales tax holidays introduce unjustifi- able government distortions into the economy