Chattanooga Times Free Press: Tennessee Now Holds Sales Tax Holiday on Same Weekend as Georgia
media mentionSeventeen states, primarily in the Southeast, stand to lose more than $300 million in tax revenue because they waive sales taxes on back-to-school items and other goods, including hunting gear, energy-efficient appliances and severe weather preparedness, according to the Institute on Taxation and Economic Policy, a nonprofit, nonpartisan research organization with offices in Washington, D.C., North Carolina and Wisconsin.
“Policy makers tout sales tax holidays as a way for families to save money. On the surface, this sounds good,” ITEP said. “However, a two- to three- day sales tax holiday for selected items does nothing to reduce taxes for low- and moderate-income taxpayers during the other 362 days of the year.
“Sales taxes are inherently regressive. In the long run, sales tax holidays leave a regressive tax system unchanged, and the benefits of these holidays for working families are minimal.”