But the tax holiday isn’t necessarily as much of a plus for everyone as its proponents say, said Dylan Grundman of the Institute on Taxation and Economic Policy, a nonprofit, nonpartisan think tank that works on state and federal tax policy issues.
“One of the key problems is, the benefits are so dispersed beyond the people this is really meant to help,” Grundman said. “It’s marketed as helpful to families getting ready for the school year, and maybe local businesses. But those targets are getting a really small sliver of benefit. It’s the multispace retail chains that are getting the benefit — and higher-income families who are more able to time their shopping and hunt around for the best deals and really take advantage of the holiday.”
The institute would rather see tax credits for families — and teachers who spend hundreds of dollars each year on supplies for their students — or better school funding. Read more