Santa Fe New Mexican: Statewide Tax-Free Holiday Approaches
media mentionThe Institute on Taxation and Economic Policy, a Washington, D.C.-based nonprofit, nonpartisan research organization, recently issued a statement about problems with such programs.
“Policy makers tout sales tax holidays as a way for families to save money,” the release said. “On the surface, this sounds good. 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. … In the long run, sales tax holidays leave a regressive tax system unchanged, and the benefits of these holidays for working families are minimal. Sales tax holidays also fall short because they are poorly targeted, cost revenue, can easily be exploited, and create administrative difficulties.”