Boston WCVB: Last Sales Tax Holiday Cost State up to $38M

The Institute on Taxation and Economic Policy said in a July report that the benefits from sales tax holidays are “minimal,” saying the benefits disproportionately benefit already-wealthy taxpayers and cost crucial revenue that will need to be made up elsewhere.

“In the long run, sales tax holidays leave a regressive tax system unchanged, and the benefits of these holidays for working families are minimal,” the ITEP wrote. “Sales tax holidays also fall short because they are poorly targeted, cost revenue, can easily be exploited, and create administrative difficulties.” Read more