Investopedia: Back-to-School Tax Holidays May Be Skimpier
media mention“And since the average family with kids in kindergarten through high school will spend about $674 for school, according to the National Retail Federation, the tax savings to that family is only about $34 assuming a 5% sales tax rate. That could be notable for a low-income family – if they’re in a position to take advantage of it, that is.The Institute on Taxation and Economic Policy argues that affluent families gain most from tax holidays. Low income families living paycheck-to-paycheck may not have the ability to time their purchases around the holiday anyway. “Policymakers seeking to achieve greater tax equity would do better to provide a permanent low-income sales tax credit,” the Institute contends.”