The Institute on Taxation and Economic Policy, meanwhile, says that while the idea for the sales tax holiday as a way for families to save money sounds good, it doesn’t do much in the long run.
“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,” said a policy brief from the organization. “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.”
