Panel considers Mass. sales tax holiday
Our own Judy Meredith comments about the Sales Tax Holiday discussion today:
Lawmakers are considering another sales tax holiday that would suspend the state's 6.25 percent sales tax on just about anything sold for less than $2,500 during the weekend of Aug. 13-14.
But critics say the holiday does little to boost the economy and costs the state much-needed tax dollars.
"It takes $20 million out of our depleted revenue stream that has already forced horrible cuts from public education and higher education" and puts the money toward "children's clothing allowances," said Judy Meredith, director of the Public Policy Institute, a nonprofit organization that supports social and economic change.
Meredith said the holiday encourages people to postpone purchases they were going to make anyway, and the estimated loss of sales tax would hurt the state's most vulnerable, who already are facing cuts to services. [Full Article: Boston Globe]