Toledo Blade: Ohio Readies for First Break on Sales Tax
media mentionCarl Davis, a senior analyst at the Institute on Taxation and Economic Policy, a nonprofit nonpartisan Washington think tank, said that while tax holidays help retailers, they don’t accomplish much else.
“I think the major takeaway with sales tax holidays is they’re high profile and they get a lot of favorable attention for politicians, because people notice these sale tax holidays,” Mr. Davis said. “But at the end of the day, they’re not going to do a whole lot of good. They’re a distraction, mainly.”
Sales taxes are “regressive taxes,” Mr. Davis said. A regressive tax is one that is applied uniformly, and therefore takes a larger percentage from lower income people than from higher income people.