Question Description
Hello Dr. O’Neal & Classmates,
As the State Economic Director for the above scenario, the economicimpact of tax holidays of up to ten days in my state reflects. Taxholiday for clothing and tax holiday for school supplies. There are only16 states that still have the sales tax holiday this year. Howeverresearch reports that the states lost $300 million due to sales taxholidays in 2016. It has been found that there are (2) factors involvedin eliminating the tax-holiday. 1) Policy-Makers are pressured byconstituents to concentrate on money, 2) The sales-tax holidays have notproduced a big economic growth, (Povich, 2017).
On the other hand, there are those that also states it has advantagesto have a sales tax holiday. 1) “It helps levels the playing field forbrick and mortar retailers who face stiff competition from online salesmany of which are tax exempt” (Povich, 2017, pg.3). 2) It generates abuying spree and big advertising campaigns which is good for economicgrowth. It is also noted that there are 5 states that have no sales taxat all (AK, OR, MT, DE, NH)(Povich, 2017).
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