The Tax Foundation

December 3, 2008

Arkansas News Bureau Features Staff Economist Josh Barro’s Testimony to Legislature

"Economist Advises Against Grocery Tax Cut, Shopping Holiday"

By Rob Moritz

A Washington, D.C.-based economist on Wednesday advised state lawmakers against reducing the sales tax on groceries and creating a sales tax holiday for back-to-school shoppers.

Reducing the sales tax on groceries would narrow the sales tax base, which is not a good idea during the current recession, Joshua Barro with the Tax Foundation, a conservative think tank, told a joint meeting of the legislative Committee on Economic and Tax Policy and the Committee on Revenue and Taxation.

[Read the full article here.]