It’s never a good sign when your “fiscally responsible” Republican governor (and “fiscally responsible” I mean not fiscally responsible at all) proposes a sales tax “holiday” gimmick, presumably as a means of boosting the economy.
Sales tax holidays are common across the southern United States – 17 states from Texas to Virginia have them, with the majority of them falling around the time students return to school, according to a July report by the Tax Foundation. Only a few states in the northern half of the United States have them – Iowa, Ohio and Connecticut – though six more states have no sales tax at all.
The holidays are popular with many consumers for offering at least the promise of some relief around one of the major seasons for family spending. But the measures are also panned by policy experts for doing little to boost the economy.
The recent Tax Foundation report found that sales tax holidays do not promote jobs growth but instead merely shift the timing of consumer purchases and complicate the process of collecting taxes from stores. Some retailers may also raise prices during the holiday, reducing consumer savings, the report found.
As has been noted elsewhere, the sales tax “holiday” gimmick proposed by Gov. Walker is nothing more than a blatant attempt to pander for votes leading up to what is certain to be a reelection campaign.