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PostPosted: Sat 21:48, 24 Aug 2013    Post subject: Buzz grows over state tax holidays

Buzz grows over state tax holidays
A new MacBook,[link widoczny dla zalogowanych], iPhone,[link widoczny dla zalogowanych], and printer in tow, the duo didn't pay a cent of sales tax, saving about $100. "That's a lot of money right now," says the elder Ms. Turner. The downside? They had to wait in line outside the computer store at Lenox Square Mall for nearly two hours.
Across Georgia,[link widoczny dla zalogowanych], Alabama, the Carolinas, and the handful of other states that held back-to-school tax holidays last weekend, shoppers jostled for pens and pads, stood in line for new computers,[link widoczny dla zalogowanych], and tried on sneakers in droves in what has become the year's second-biggest shopping splurge.
The stakes were higher than usual this year as consumers looked to pick up some value for their inflation-eroded dollars and restless retailers vied to recoup a 0,[link widoczny dla zalogowanych].2 percent dip in consumer spending due to high prices,[link widoczny dla zalogowanych].
"This is probably the biggest year we've ever had for sales tax holidays,[link widoczny dla zalogowanych]," says John Heavener, president of the Georgia Retail Association, in Lithonia.
To some, the growing popularity of tax holidays - and the willingness of states to hold them even in the face of dwindling tax revenues - represents a troubling shift in tax policy. Not only are states using a gimmick to manipulate consumer behavior,[link widoczny dla zalogowanych], critics argue,[link widoczny dla zalogowanych], but the resulting revenue losses can also have a destabilizing effect on how states govern.
"At one time the tax system was used to raise revenue and right now it's being used to implement this or that social policy or goal,[link widoczny dla zalogowanych]," says economist Patrick Fleenor at the Tax Foundation,[link widoczny dla zalogowanych], a tax research and public education organization in Washington.
New York held the first back-to-school tax holiday in 1997. Since then the events have grown,[link widoczny dla zalogowanych], kudzu-like, often expanding into neighboring states as legislatures engage in cross-border retail wars to keep their residents from shopping out of state.
With Massachusetts last week adding a mid-August holiday,[link widoczny dla zalogowanych], 16 states plus the District of Columbia will have staged such events this year. Five states,[link widoczny dla zalogowanych], including Georgia,[link widoczny dla zalogowanych], have added special tax-free days on energy-efficient appliances.
But many retailers hope to capture some of the $594 each American family is expected to spend this year on back-to-school supplies (including computers) - up from last year's $563, according to the National Retail Federation. What's more, one-fifth of parents say they've set aside a portion of this year's federal stimulus check for back-to-school purchases.
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