August 2, 2010
USA Today Interviews Tax Foundation Staff Economist Mark Robyn on Sales Tax Holidays
"Sales tax holidays spread to 18 states"
By Martha T. Moore
Despite state budget troubles, more states than ever are embracing sales tax holidays, which aim to please back-to-school shoppers even as they draw criticism from economists.
Illinois will offer tax-free shopping this month for the first time, bringing to 18 the number of states that suspend sales tax on designated days, up from 16 states in 2009 and seven in 2000.
The end of summer is the most popular time for tax holidays: 15 states will suspend sales taxes this month. ...
Policy analysts at both ends of the political spectrum say tax holidays are stunts that don't boost the economy and hurt state budgets.
Sales tax holidays are "a political gimmick," says Mark Robyn of the Washington, D.C.-based Tax Foundation, which backs broader tax cuts.
Tax-free days cause shoppers to shift their spending, not increase it, Robyn says.